Vadalur Town Panchayat TNUIFSL

Town Investment Plan – Vadalur
Disclaimer… T
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The contents of this report are based primarily on discussions with Vadalur
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Town Panchayat and information, secondary data /Reports available with the
Town Panchayat including our discussions with the Stakeholders of the Town. D
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Based on the available data and information provided to us, M/s Darashaw &
Company Pvt. Ltd has prepared the Final report.
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Final
Report
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Table of Contents…
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1 Project Background .................................................................................................................. 1-1
1.1 Project Objectives............................................................................................................ 1-1 N
1.2 Scope of work .................................................................................................................. 1-2
1.3 Methodology Adopted .................................................................................................... 1-3 U
1.3.1 Database identification........................................................................................... 1-5
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1.4 Detailed approach and methodology.............................................................................. 1-6
1.4.1 Inception stage report............................................................................................. 1-6 P
1.4.2 Draft Final Stage .................................................................................................... 1-8
1.4.3 Final Stage .............................................................................................................. 1-9
2 Town Profile ............................................................................................................................. 2-1
2.1 Regional setting and network linkages .......................................................................... 2-2
2.2 Demography..................................................................................................................... 2-4
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2.2.1 Population projections............................................................................................ 2-5
2.3 Social Characteristics ...................................................................................................... 2-6
2.3.1 Social Composition ................................................................................................ 2-6
2.3.2 Gender Ratio........................................................................................................... 2-6
2.3.3 Literacy levels......................................................................................................... 2-7
2.4 Physical characteristics ................................................................................................... 2-7
2.4.1 Geology and Soil Type .......................................................................................... 2-7
2.4.2 Climate and Rainfall .............................................................................................. 2-7
3 Economic Development ........................................................................................................... 3-1
3.1 Economic Base of the town ............................................................................................ 3-1
3.2 Occupational Pattern ....................................................................................................... 3-1 Final
3.3 Industries .......................................................................................................................... 3-2 Report
3.4 Tourism potential............................................................................................................. 3-2
3.4.1 Chidambaram.......................................................................................................... 3-2
3.4.2 Pichavaram.............................................................................................................. 3-3
4 Physical Infrastructure.............................................................................................................. 4-1
4.1 Water Supply ................................................................................................................... 4-1
4.1.1 Water Supply Sources ............................................................................................ 4-1
4.1.2 Water Supply System............................................................................................. 4-4
4.1.3 Water Availability .................................................................................................. 4-6
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4.1.4 Service Adequacy................................................................................................... 4-6

4.1.5 Sectoral issues......................................................................................................... 4-6
4.1.6 Water supply demand assessment ......................................................................... 4-7 T
4.2 Sewerage and Sanitation ................................................................................................. 4-8
4.2.1 Sewerage system in Vadalur.................................................................................. 4-8 N
4.2.2 Sectoral issues......................................................................................................... 4-8
4.2.3 Sewerage demand assessment ............................................................................... 4-8 U
4.3 Storm Water Drainage..................................................................................................... 4-9
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4.3.1 Service adequacy.................................................................................................... 4-9
4.3.2 Sectoral issues......................................................................................................... 4-9 P
4.3.3 Storm water drainage demand assessment............................................................ 4-9
4.4 Solid Waste Management ............................................................................................. 4-10
4.4.1 Generation and Collection ................................................................................... 4-10
4.4.2 Disposal and treatment Facilities ........................................................................ 4-10
4.4.3 Adequacy of services ........................................................................................... 4-11
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4.4.4 Sectoral issues....................................................................................................... 4-11
4.4.5 Solid waste management demand assessment.................................................... 4-12
4.5 Roads, Traffic and Transportation................................................................................ 4-12
4.5.1 Regional Network................................................................................................. 4-12
4.5.2 City level Road Network ..................................................................................... 4-13
4.5.3 Public Transport System...................................................................................... 4-13
4.5.4 sectoral issues ....................................................................................................... 4-14
4.5.5 Road network demand assessment...................................................................... 4-14
4.6 Street Lighting ............................................................................................................... 4-14
4.6.1 Adequacy of services ........................................................................................... 4-15
4.6.2 sectoral Issues ....................................................................................................... 4-15 Final
4.6.3 Street lighting Demand Assessment.................................................................... 4-15 Report
5 Socio-Economic Infrastructure................................................................................................ 5-1
5.1 Recreation ........................................................................................................................ 5-1
5.2 Other Amenities............................................................................................................... 5-1
5.3 Problems and Issues ........................................................................................................ 5-2
6 Slums and Urban Poverty ........................................................................................................ 6-1
6.1 Slums in Vadalur ............................................................................................................. 6-1
6.2 Urban poor in Vadalur .................................................................................................... 6-2
6.3 Problems and Issues ........................................................................................................ 6-3
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7 Fiscal status..................................................................................................................................... 7-1

7.1 Background ............................................................................................................................. 7-1
7.2 Financials................................................................................................................................. 7-3 T
7.3 Analysis of Income ................................................................................................................. 7-5
7.3.1 Own Sources.................................................................................................................... 7-6 N
7.3.2 External Sources.............................................................................................................. 7-8
7.4 Analysis of Expenditure ......................................................................................................... 7-8 U
7.5 Source & Use of Funds......................................................................................................... 7-12
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7.6 Demand Collection and Balance.......................................................................................... 7-14
7.7 Outstanding Loan and Non-Debt Liability.......................................................................... 7-16 P
8 Institutional capacity assessment................................................................................................... 8-1
8.1 Staff Strength .......................................................................................................................... 8-1
8.2 Institutional Strengthening & Capacity Building ................................................................. 8-1
9 S W O T .................................................................................................................................... 9-1
10 Stakeholders Consultation ................................................................................................. 10-1
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10.1 Operational Working Group ......................................................................................... 10-1
10.2 Priority based on OWG opinion survey....................................................................... 10-7
10.2.1 Physical infrastructure priority ............................................................................ 10-7
10.2.2 Social infrastructure priority................................................................................ 10-8
10.2.3 Environmental Issues ........................................................................................... 10-9
11 Asset management plan ..................................................................................................... 11-1
11.1 List of Assets: ................................................................................................................ 11-2
11.2 Operations and Maintenance ........................................................................................ 11-4
11.2.1 O&M of social infrastructure assets.................................................................... 11-4
11.2.2 O&M Physical Infrastructure .............................................................................. 11-6
11.3 AMP - Recommendations............................................................................................. 11-8 Final
11.3.1 Asset Register ....................................................................................................... 11-8 Report
11.3.2 Asset Value and Life Cycle Management .......................................................... 11-8
11.3.3 Sustainability ........................................................................................................ 11-9
11.3.4 Integration of Technical and Financial Plans ..................................................... 11-9
11.3.5 Condition Assessment Survey (CAS) ................................................................. 11-9
11.3.6 Risk Assessment ................................................................................................. 11-10
11.3.7 Monitoring and Evaluation ................................................................................ 11-10
11.3.8 Budgeting............................................................................................................ 11-10
11.3.9 Training in Database management.................................................................... 11-10
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12 Consolidated issues............................................................................................................ 12-1

13 Strategic Planning .............................................................................................................. 13-1
13.1 Action plan for sectoral development .......................................................................... 13-1 T
14 Capital Investment Plan..................................................................................................... 14-1
14.1 Physical Infrastructure .................................................................................................. 14-2 N
14.1.1 Water Supply ........................................................................................................ 14-3
14.1.2 Sewerage and Sanitation ...................................................................................... 14-4 U
14.1.3 Storm Water Drainage ......................................................................................... 14-4
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14.1.4 Solid Waste Management .................................................................................... 14-6
14.1.5 Roads, Traffic and Transportation ...................................................................... 14-7 P
14.1.6 Street Lighting ...................................................................................................... 14-9
14.2 Slums and Urban Poverty ........................................................................................... 14-10
14.3 Socio-economic Infrastructure ................................................................................... 14-11
14.4 Consolidated Capital Investment Plan ....................................................................... 14-12
14.4.1 First Phase Investment Plan (2009-10 to 2013 – 14) ....................................... 14-12
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14.4.2 Second Phase Investment Plan (2014-15 to 2018 – 19) .................................. 14-14
14.4.3 third Phase Investment Plan (2019-20 to 2023-24).......................................... 14-16
15 Reforms and Resource mobilization ......................................................................................... 15-1
15.1 Overview ............................................................................................................................. 15-1
15.2 Reform measures for Vadalur Town Panchayat ............................................................... 15-2
15.2.1 Financial & Accounting reforms................................................................................ 15-2
15.2.2 Institutional Reforms .................................................................................................. 15-7
15.2.3 Reforms in Physical Infrastructure .......................................................................... 15-11
15.3 Additional Resource Mobilization................................................................................... 15-15
16 Financial Operating Plan............................................................................................................ 16-1
16.1 Background- need for an FOP ........................................................................................... 16-1 Final
16.2 Financial Sustainability ...................................................................................................... 16-2 Report
16.2.1 Base Case Scenario ..................................................................................................... 16-2
16.2.2 Full project Scenario ................................................................................................... 16-3
16.3 Assumptions for FOP ......................................................................................................... 16-4
16.3.1 Revenue Income.......................................................................................................... 16-4
16.3.2 Revenue Expenditure.................................................................................................. 16-7
16.3.3 Funding Mechanism.................................................................................................... 16-8
16.4 Outcome of Financial Operating Plan ............................................................................... 16-9
16.4.1 Base Case Scenario (“Business as Usual Scenario”)................................................ 16-9
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16.4.2 Full Project Scenario with suggested Reforms ....................................................... 16-11
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List of Tables…
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Table 2-A : Population growth trends in Vadalur ........................................................................... 2-4
Table 2-B Ward wise Population details.......................................................................................... 2-4 N
Table 2-C : Projected population figures for Vadalur Town Panchayat ........................................ 2-5
Table 2-D Social Composition ......................................................................................................... 2-6 U
Table 2-E Gender Ratio..................................................................................................................... 2-6
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Table 2-F Literacy levels .................................................................................................................. 2-7
Table 3-A Occupational Pattern and its comparison....................................................................... 3-1 P
Table 4-A : Water Supply Improvement Scheme under Minimum Need Programme................. 4-2
Table 4-B Water Supply system in Vadalur .................................................................................... 4-5
Table 4-C : Performance Indicators for water supply in Vadalur .................................................. 4-6
Table 4-D : Water supply demand for the next fifteen year period................................................ 4-7
Table 4-E : Sewerage demand for the next fifteen year period ...................................................... 4-8
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Table 4-F : Performance indicators for Storm Water Drainage in Vadalur................................... 4-9
Table 4-G : Storm water drainage demand for the next fifteen year period .................................. 4-9
Table 4-H Waste Composition ....................................................................................................... 4-10
Table 4-I : Performance Indicators for Solid Waste Management............................................... 4-11
Table 4-J : Solid waste Management demand for the next fifteen year period ........................... 4-12
Table 4-K: Road network in Vadalur ............................................................................................. 4-13
Table 4-L : Road Network demand for the next fifteen year period ............................................ 4-14
Table 4-M : Ward wise street lighting details................................................................................ 4-14
Table 4-N : Performance Indicators related to Street Lighting .................................................... 4-15
Table 4-O Street lighting Demand for the next fifteen year period.............................................. 4-15
Table 5-A : Issues pertaining to Socio-Economic Infrastructure ................................................... 5-2 Final
Table 6-A Slums in Vadalur ............................................................................................................. 6-1 Report
Table 6-B Ward wise BPL population in Vadalur .......................................................................... 6-2
Table 7-A Income & Expenditure Account Rs.
in lakhs ............................................................................................................................................... 7-3
Table 7-B : Income Analysis ............................................................................................................ 7-5
Table 7-C Property Tax Particulars .................................................................................................. 7-6
Table 7-D Property Tax Assesses for the last few years................................................................. 7-6
Table 7-E Profession Tax Particulars ............................................................................................... 7-7
Table 7-F No of assessments for Professional Tax ........................................................................ 7-7
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Table 7-G : Expenditure Analysis .................................................................................................... 7-9

Table 7-H Balance Sheet................................................................................................................. 7-12
Table 7-I: Fixed Assets ................................................................................................................... 7-13 T
Table 7-J: DCB for the Past 6 years Rs. In Lakhs. ................................. 7-14
Table 7-K : Outstanding Loan and Non-Debt Liability ............................................................... 7-16 N
Table 8-A : The Staff strength of the Vadalur Town Panchayat .................................................... 8-1
Table 10-A: Suggestions and projects............................................................................................ 10-2 U
Table 11-A: Details of various social & physical infrastructure assets ....................................... 11-3
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Table 11-B: O&M and Revenue generation .................................................................................. 11-4
Table 11-C Past Growth trends in O & M expenses relating to key physical infrastructure...... 11-6 P
Table 11-D O&M rates as a % of proposed capital works .......................................................... 11-7
Table 12-A : Consolidated Issues ................................................................................................... 12-1
Table 14-A : Consolidated Sector wise Capital Investment requirements .................................. 14-1
Table 14-B : Project List and Budget Estimates for Water Supply Works.................................. 14-3
Table 14-C : Goals and Service outcomes related to Water Supply sector ................................. 14-3
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Table 14-D : Project List and Budget Estimates for Sewerage and Sanitation Works ............... 14-4
Table 14-E : Project List and Budget Estimates for Storm Water Drainage works .................... 14-5
Table 14-F : Goals and Service outcomes related to Storm Water Drainage sector ................... 14-5
Table 14-G : Project List and Budget Estimates for Soild Waste Management works .............. 14-6
Table 14-H : Goals and Service outcomes related to Solid Waste Management works............. 14-7
Table 14-I : Project List and Budget Estimates for Roads, Traffic and Transportation works .. 14-8
Table 14-J : Goals and Service outcomes related to Roads, Traffic and Transportation sector. 14-9
Table 14-K : Project List and Budget Estimates for Street lighting works.................................. 14-9
Table 14-L : Goals and Service outcomes related to Street lighting sector............................... 14-10
Table 14-M : Project List and Budget Estimates for Slums and Urban Poverty....................... 14-11
Table 14-N : Project List and Budget Estimates for Socio-Economic Infrastructure works.... 14-11 Final
Table 14-O First Phase Capital Investment Plan for Vadalur Town Panchayat....................... 14-12 Report
Table 14-P First Phase Capital Investment Plan for Vadalur Town Panchayat (after considering
escalation cost)............................................................................................................................... 14-13
Table 14-Q Second Phase Capital Investment Plan for Vadalur Town Panchayat................... 14-14
Table 14-R Second Phase Capital Investment Plan for Vadalur Town Panchayat (after
considering escalation cost) .......................................................................................................... 14-15
Table 14-S Third Phase Capital Investment Plan for Vadalur Town Panchayat....................... 14-16
Table 14-T Third Phase Capital Investment Plan for Vadalur Town Panchayat (after considering
escalation cost)............................................................................................................................... 14-17
Table 15-A: Collection Efficiency of key revenue sources .......................................................... 15-3
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Table 15-B: Efficiency parameters of key taxes and water charges ............................................ 15-3
Table 15-C: Reforms in property Taxes......................................................................................... 15-4
Table 15-D: Accounting Reforms .................................................................................................. 15-6 T
Table 15-E: Possible areas of privatization/outsourcing............................................................... 15-9
Table 15-F: Reforms in Physical Infrastructure .......................................................................... 15-11 N
Table 16-A : Key assumptions for forecasting income from Property Taxes ............................. 16-5
Table 16-B: Key assumptions for forecasting income from Water Charges ............................... 16-5 U
Table 16-C: Assumption for Income.............................................................................................. 16-6
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Table 16-D: Assumption for Revenue Expenditure ...................................................................... 16-7
Table 16-E: Key assumptions for forecasting future debt obligations......................................... 16-8 P
Table 16-F: Financing Pattern for Proposed projects as per prudent Funding norms................. 16-8
Table 16-G : Financial Operating Plan of Vadalur Base Case Scenario.................................... 16-10
Table 16-H: Full Project Cash Flow - As per Prudent Financial norms .................................... 16-12
Table 16-I: Financial Operating Plan of Vadalur - Full Project with Reforms-Prudent Funding
Norms ............................................................................................................................................. 16-13
Table 16-J: Calculation of Debt Service Coverage Ratio (DSCR) With FULL PROJECT WITH
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REFORMS- As per Prudent Financial Norms............................................................................. 16-13
Table 16-K: Sector wise Investments........................................................................................... 16-14
Table 16-L: Funding Pattern based on Prudent Financial Norms .............................................. 16-15
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List of Figures…
Figure 1-1 Approach and Methodology for Town Investment Plan .............................................. 1-4
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Figure 1-2 Approach and Methodology for Inception stage........................................................... 1-7
Figure 2-1Regional setting and network linkages ........................................................................... 2-3 N
Figure 4-1 : Regional Network Linkages....................................................................................... 4-12
Figure 7-1 Income & Expenditure Account..................................................................................... 7-3 U
Figure 7-2: Break up of Income for the year 2008-09(Un-Audited).............................................. 7-5
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Figure 7-3 Break up of Expenditure for the year 20008-09 (Un-Audited)................................... 7-9
Figure 7-4 : Source of Funds as on 2008-09 (Un-Audited) .......................................................... 7-13 P
Figure 7-5 Use of Funds as on 2008-09 (Un-Audited) ................................................................. 7-14
Figure 10-1 : First Formal Meeting on 7th July 2009 ................................................................... 10-2
Figure 10-2 Sector prioritization by the Stakeholders (Physical Infrastructure) ......................... 10-8
Figure 10-3 Sector prioritization by the Stakeholders (Social Infrastructure)............................. 10-9
Figure 10-4 Sector prioritization by the Stakeholders (Environmental Issues)......................... 10-10
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Figure 10-5 Consultation in VadalurTown Panchayat ................................................................ 10-10
Figure 14-1 Sector wise percentage share...................................................................................... 14-2
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Annexure……
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Annexure I Norms Vs Current Status
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Annexure II Town Map
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Annexure III Project Implementation Schedule
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Annexure IV Reforms Implementation Schedule
Annexure V Minutes of the Review Committee Meeting on Inception & Draft
Final Report
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Annexure VI Salary Slip of Staff
Annexure VII List of Approved Layout
Annexure VIII OWG attendees list
Annexure IX Council Resoultion
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Acronyms…
AMP : Asset Management Plan T

BE : Budget estimates
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BPL : Below Poverty Line
BOT : Build-Operate-Transfer U
BOOT : Build-Own-Operate-Transfer
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BOLT : Build-Own-Lease-Transfer
BT : Bitumen P
CAGR : Compounded Annual Growth Rate
CC : Cement Concrete
CIP : Capital investment Plan
CMA : Commissionerate of Municipal Administration III

CMWSSB : Chennai Metro Water Supply & Sewerage Board
CPHEEO : Central Public Health & Environmental Engineering Organization
DSCR : Debt Service Coverage Ratio
DPR : Detailed Project Report
ESR : Elevated Storage Reservoir
ESA : Environmental and Social Assessment
FAS : Financial Accounting System
FOP : Financial Operating Plan

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FY : Financial Year
Report
GIS : Geographical Information System
Govt. : Government
G.O : Government Order
GSR : Ground Level Reservoir
HH : House hold
HP : Horse Power
HSC : House Hold Connections
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HSS : Higher Secondary School
HUDCO : Housing and Urban Development Corporation

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IHSDP : Integrated Housing & Slum Development Program
Kg : Kilo Gram N
Km : Kilometer
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JNNURM : Jawaharlal Nehru National Urban Renewal Mission
Sq.Km : Square Kilometer D

Lpcd : Litre per capita per day
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LL : Lakh Litre
LIC : Life Insurance corporation of India
OHT : Over Head Tanks
m : Meter
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m2 : Square Meter
m3 : Cubic Meter
MIS : Management Information System
Mld : Million litres per day
MOA : Memorandum of Association
Mm : Millimeter
MRTS : Mass Rapid Transit System
MTC : Metropolitan Transport Corporation
MUDF : Municipal Urban Development Funds
MUDP : Madras Urban Development Project Final

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NA : Not Available/Not Applicable
NGO : Non Government Organization
NH : National Highway
NHAI : National Highway Authority of India
O&M : Operations and Maintenance
PF : Public Fountains
PPP : Public Private Participation
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PSP : Private Sector Participation
PWD : Public Works Department
RE : Revised Budget estimates

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SEZ : Special Economic Zone N
Sq ft : Square Feet
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Sq Km : Square Kilometer
SC/ST : Scheduled Castes/Schedule Tribes D

SHG : Self Help Group
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SH : State Highway
SWD : Storm Water Drains
SWM : Solid Waste Management
TIP : Town Investment Plan
TOR : Terms of Reference

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TNUDP : Tamil Nadu Urban Development Project
TNUIFSL : Tamil Nadu Urban Infrastructure Financial Services Limited
TUFIDCO : Tamil Nadu Urban Finance & Infrastructure Development Corporation

Limited
TWAD : Tamil Nadu Water Supply & Drainage Board
UDPFI : Urban Development Planning Formulation and Implementation
UIDSSMT : Urban Infrastructure Development Scheme for Small & Medium Towns
UGD : Under Ground Sewerage
ULB : Urban Local Bodies Final
WBM : Water Bound Macadam Report
WFPR : Work Force Participation Rate
WS : Water Supply
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1 PROJECT BACKGROUND N
Government of Tamilnadu and The World Bank as a partner has been involved
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in Urban Reform program in Tamilnadu through Tamilnadu Urban
Development Project – TNUDP-I, TNUDP-II, TNUDP-III (in progress). D
Government of Tamilnadu is now implementing TNUDP-III with focus on
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furthering the urban reforms initiated under TNUDP-II.
As a financial intermediary, TNUIFSL intends to assist Annamalai Nagar,

Vadalur, Tharangampadi, Ottenchatram, Thudiyalur, Thirupattur, S.Kannanur
and Peravurani Town Panchayats in identifying infrastructure gaps and propose
capital investment needs for providing better service delivery. III
In this regard, the task of preparation of Town Investment plan for the aforesaid
towns has been awarded to Darashaw & Company Private Limited. This report
pertains to the Town Investment Plan for Vadalur.
1.1PROJECT OBJECTIVES Final

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The objective of this exercise is to:
Assess the demand for the projects specified by the towns and come out
with gap in services considering the population growth and growth
direction of towns;
Broadly outline the short term and long term infrastructure needs;
Define specific rehabilitation and capital improvement needs with regard

to priority of town infrastructure in both slums and other areas;
Define revenue enhancement and revenue management improvements

required
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1.2SCOPE OF WORK
The scope of works covers but not limited to the following: T
Assess the demand for the projects listed out by these Town Panchayats. N
Current coverage and additional population in the medium term (10
years) and unit costs, indicate town level investment requirement for
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up gradation of town wide infrastructure.
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to improve service coverage and asset quality and define priority
assets and indicative costs of rehabilitation P
Financial assessment of the ULBs- an assessment of local finances (past
5 years) in terms of sources and uses of funds, base and basis of levy,
revision history and impacts, State assignments and transfers- base and
basis of transfer and its predictability; uses of funds outstanding
liabilities (loans, power dues, pension etc) and, a review of revenue and
service management arrangements, levels of service, coverage and
quality of municipal services in both poor and non-poor localities.
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Staffing and management arrangements in delivery of services
Initiate consultations with council and local stakeholders on the

priorities; redefine priorities and work with the Council to resolve on
adoption of the Town Investment Plan.
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Prepare a financial and operating plan (FOP). The FOP is a medium term Report
framework of the ULBs, and shall present the following–
Break up of energy cost on UG, WS etc.
Salary for all the departments including staff and payments to private
operators
Finding out the benchmark cost i.e. at ideal condition what will be
the cost of the identified investments, a table indicating the
investment plan for next 5 years with identified source of finance.
Areas of reduction in expenditure
Energy audit resulting in savings in energy.
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Leak detection resulting either in connections or in the tariff (or)

maintaining the same supply and achieving a reduction in energy
cost.
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Privatizing the MSW collection and identifying a BoT operator for
elim9inating, composting etc, items of revenue can be identified.
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Laying of Cement concrete road / Fly ash and savings on
maintenance cost resulting in increasing operating surplus. U
Water recycling / reuse D
Rejuvenation of tanks and reduction of cost / liters of water produced
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Privatization & option for revenue raising.
Options for increasing the revenues through non-traditional methods
Land development for raising revenue (not the traditional

commercial complexes)
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Suggestion for improvement of revenues
Finalize Action Plan for the Town, with a resolution from the council on
the priorities
1.3METHODOLOGY ADOPTED
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The whole exercise is divided into four stages, which are further subdivided into
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tasks and several sub-tasks or activities within them. Figure below shows the
adopted study methodology and is followed by a brief description on each of the
stages.
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Figure 1-1 Approach and Methodology for Town Investment Plan

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1.3.1 DATABASE IDENTIFICATION T
Database Identification and compilation N
Database forms the backbone of any kind of research works and also U
helps in focusing the study towards the definite approach. Under this
task, the database required and the departments responsible for such D
kind of data was identified at town levels. A detailed checklist was
prepared of all the sectors, along with identifying the probable
departments for the collection of the data. P
Field survey and data collection
Secondary data was collected from Town Panchayat in relation to

different sectors identified like:
i. Town Infrastructure Services III

ii. Town Economic Development
iii. Roads, Traffic and Transportation
iv. Slums and Urban Poverty
v. Human resources and Institutional Issues
vi. Financial management
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vii. Environmental Management
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viii. Asset Management
ix. O&M Requirements, Energy Saving Mechanism &
Capacity assessment
Data was also collected on the Finance and Institutional Arrangement of the
ULB. It Included accounts and budgets for the last five years, loan status, capital
works in the last five years with sector-wise breakup, Audit Report, Properties,
Water connections, Sewer connections registered and assessment of unregistered
properties and assets of each town Panchayats and their condition. In addition,
staffing and management arrangements in delivery of services was also collected
and assessed.
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1.4DETAILED APPROACH AND

METHODOLOGY T
1.4.1 INCEPTION STAGE REPORT N
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1.4.1.1 DEMAND ASSESSMENT
RFP document specifies that the ULBs have on their own identified certain D
projects to be implemented, for which demand assessment has to be carried out
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and sustainable investment plan has to be prepared for the same.
Hence, Inception stage in essence assessed the demand for various projects
proposed by the ULBs. Furthermore, Investment Plan for such projects was
reviewed (or) Investment Plan was prepared for such projects, if not attempted
by the concerned Town Panchayats. Further, Overall Demand Supply Gap III
analysis in terms of Physical and Social Infrastructure for the next 15 years for
the ULB was carried out.
1.4.1.2 RAPID TOWN PERFORMANCE ASSESSMENT
Here, all the information collected from Secondary sources was analyzed to
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arrive, current development status at town area level. The analysis included all Report
the sectors mentioned below:
i. Town Infrastructure Services

ii. Town Economic Development
iii. Roads, Traffic and Transportation
iv. Slums and Urban Poverty
v. Human resources and Institutional Issues
vi. Financial management
vii. Environmental Management
viii. Asset Management
ix. O&M Requirements, Energy Saving Mechanism &
Capacity assessment
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Figure 1-2 Approach and Methodology for Inception stage
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Demand Assessment and Rapid Urban assessment undertaken in the

Inception stage was approved and accepted by the Review Committee on
28th August 2009.
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1.4.1.3 SUGGESTIONS OF THE REVIEW COMMITTEE ON THE Report
INCEPTION REPORT
The Suggestions given by the Review Committee during the meeting has been
given as under.
To conduct stakeholders’ consultations to ascertain the demands from

public to identify infrastructure gaps.
To present the draft final report to respective ULBs in the council after
incorporating the suggestions of stake holders meeting.
To recheck the financials of ULBs including debt status.
To Analyse last 5 years financials and furnish the data on existing loan,
loan repaid on due date, overdue loan, loan balance and loans sanctioned
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but yet to be availed. In this regard, all Town Panchayats were requested
to provide 5 years audited accounts and recent years’ un-audited
accounts along with DCB and loan statements and any other relevant
details to the consultants. T
To study on the unused / under utilized assets of the ULB and suggest
N
ways for the better utilization of the same.
To identify any vacant land for development. U

DCB presented to be rechecked with ULB. D
1.4.2 DRAFT FINAL STAGE P
In draft final stage, four tasks were carried out and are described briefly as
below:
1.4.2.1 DEVELOPMENT SCENARIO
Future Development Scenario for the ULB was developed based on Rapid Town
III
Performance Assessment, Demand Assessment, S-W-O-T analysis and on the
basis of Citizen’s perception and viewpoint.
1.4.2.2 SECTORAL VISION AND STRATEGIES
On the basis of the sectoral issues identified during rapid Town Performance Final
assessment, the sectoral vision and strategies were worked out to overcome Report
those issues. These strategies were further converted into Action plans and
projects. The projects were then phased on the basis of demand and stakeholders
priorities.
During Strategic plan preparation; emphasis was mainly given to Areas/ sectors
related to local Economic Development and poverty reduction
1.4.2.3 TOWN INVESTMENT PLAN
The budget cost estimates for the proposed projects was worked out to
determine the financial requirements for meeting the demand for infrastructure
and services. The project phasing was also worked out so that the financials of
TNUIFSL 1-8
the ULB would not be burdened much and at the same time the objective of
provision of basic services would be achieved.
T
1.4.2.4 ASSET MANAGEMENT PLAN
The life cycle O&M costs for the services proposed were worked out and in
N
addition, O&M for lands and assets vested with the ULBs were also worked out. U
On that basis, a detailed Asset Management Plan was prepared for the ULB.
D
The above 4 tasks were covered in this Draft Final stage report. P
The Draft Final Stage was approved and accepted by the Review
Committee on 23rd December 2009.
1.4.2.5 SUGGESTIONS OF THE REVIEW COMMITTEE ON THE

III
DRAFT FINAL REPORT
The Suggestions given by the Review Committee during the meeting has been
given as under.
The ULB is requested to provide the break up of Programme expense for

preparation of FOP for the town.
Final
Report
1.4.3 FINAL STAGE
In final Stage, there are two tasks, which have been carried out and are described
briefly as below:
1.4.3.1 FINANCIAL OPERATING PLAN
The projected FOP under four broad scenarios has been worked out to highlight
the importance of the reforms suggested to implement all identified projects
required for the development of the ULB.
TNUIFSL 1-9
The four broad scenarios under which FOP has been worked out for each ULB
are as under:
T
Base case scenario (“Business as usual scenario”) - In this scenario “No
New Projects” and “No reforms” over the next 15 year period is
N
considered.
Full Project Scenario without undertaking the Suggested Reforms U

Full Project Scenario with Full Reforms implementation D
Sustainable Investment Scenario
P
1.4.3.2 DRAFT MEMORANDUM OF ASSOCIATION
Draft Memorandum of Association has been prepared which would outline the
base line (based on the Situation Analysis) and the performance benchmarks to
be monitored, apart from other financial and loan covenants. This Draft MoA
has covered two sub tasks. One is the Policy Intervention in the form of
III
Institutional and policy reforms for effective governance and financial
management. The other one is the technical assistance to each ULB for effective
implementation of the Town Investment Plan.
1.4.3.3 COUNCIL RESOLUTION

Final
Council Resolution has been obtained from the ULB accepting all suggested Report
reforms and proposed Investments for the next 15 years period.
The final report has covered all the above stages along with incorporating the
suggestions and modifications given by the review committee and local
stakeholders.
TNUIFSL 1-10
2 TOWN PROFILE T
N
Vadalur is a panchayat town in Cuddalore district in the Indian state of
U
Tamilnadu. It consists of three revenue villages namely Aabatharanapuram,
Parvathipuram and Serakuppam. D
As per the Inspector of Vadalur proceedings 1774-55 dated. 14.08.55 the three
P
Revenue Villages Serakuppam, Parvathipuram and Abatharanapuram
constituted as separate Village Panchayats. Then as per Director of Rural
Development, Chennai ROC No. 5446/69F2 dated. 20.09.1969 the three
Revenue Villages were upgraded as Second Grade Town Panchayat since
01.10.1969. III
The Three Town Panchayats were united to form Vadalur, a First grade Town
Panchayat as per the Director of Rural Development, Chennai ROC
No.125736/81F/1 dated. 13.10.1981 and Tamilnadu Gazette Publication dt
25.11.2001 and The Collector, South Arcot District ROC No. 70137/81/TA2
dated. 3.12.1981.
Final
As per the Director of Town Panchayats, Chennai ROC No. 3806/82/J-5 dated Report
24.02.1982 VADALUR was upgraded as Selection Grade Town Panchayat.
As per the Government Secretary of Rural Development ROC No.

150/1.10.2004 VADALUR was degraded as Special Village Panchayat from
12.10.2004.
And presently, Vadalur was upgraded and functions as per the Government
Secretary of Rural Development ROC No. 55/14.07.2006 as Selection Grade
Town Panchayat.
TNUIFSL 2-1
Formally Cuddalore and Villupuram District was considered as a single district

called South Arcot District and later on it was divided.
Ramalinga Swamigal popularly called 'Vallalar' had established the Sathyagnana

T
Sabhai. The "Thai Poosam" function in December-January is a festival of this N
place. The Swamigal sang thousands of songs called "Thiru Arutppa". This
district was named after him for a while. U
D
2.1REGIONAL SETTING AND NETWORK
P
LINKAGES
Vadalur town is centrally located between Vikiravandi – Kumbakonam –
Thanjavur National Highway (NH – 45C) road and Cuddalore – Virudhachalam
– Salem state highway (SH -10). The Town is located 200 kms south of State
Capital Chennai and 36 kms west of District Head Quarters Cuddalore. Vadalur III
town is very well connected by buses to Chennai, Virudhachalam,
Chidambaram, Cuddalore, Kumbakonam and Thanjavur.
Vadalur has railway station in Cuddalore Salem Broad gauge line running via
Virudhachalam. Currently passenger train is being operated between Cuddalore
and Salem stops at Vadalur railway station. Final
Report
The nearest airport is in Tricy which is 150 km away from Vadalur.
TNUIFSL 2-2
Figure 2-1Regional setting and network linkages
III
Final
Report
TNUIFSL 2-3
2.2DEMOGRAPHY
Vadalur has a population of 26016 as per 2001 census having male population T
of 13134 and female population of 12882. Vadalur has shown a growth
N
percentage of 10.3% between 1991 and 2001. The growth of population and
decadal variation from the year 1971 is illustrated in Table 2-A. U
Table 2-A : Population growth trends in Vadalur
D
Percentage
Census year Pop Increase P
1991 23586
2001 26016 10.3
The ward wise population as per 2001 census is shown in Table 2-B.
Table 2-B Ward wise Population details III

Scheduled Scheduled
Wards Population Male Female
Caste Tribe
Ward No.1 3007 1510 1497 51 5
Ward No.2 1769 940 829 48 0
Ward No.3 1917 986 931 51 4
Final
Ward No.4 1033 511 522 96 11 Report
Ward No.5 984 483 501 280 0
Ward No.6 1244 604 640 228 0
Ward No.7 1408 709 699 698 283
Ward No.8 1706 873 833 550 0
Ward No.9 978 494 484 23 0
Ward No.10 821 396 425 54 0
Ward No.11 1882 948 934 82 0
Ward No.12 2214 1143 1071 138 3
Ward No.13 793 413 380 51 1
Ward No.14 684 338 346 87 0
TNUIFSL 2-4
Ward No.15 1176 596 580 0 0

Ward No.16 542 269 273 24 5
Ward No.17 2479 1241 1238 737 5 T
Ward No.18 1379 680 699 60 40
N
Total 26016 13134 12882 3258 357
U
2.2.1 POPULATION PROJECTIONS
D
As per Indian census, population details are available for only two decades
(1991 and 2001) for Vadalur Town Panchayat. Under this scenario, base year P
population provided by the Town Panchayat is considered for the year 2009
after cross checking with birth and death rate data provided by the town
Panchayat for data validation. Average growth rate between 1991 – 2001 and
2001 – 2009 is taken into consideration for projecting future population for the
III
next fifteen year period which is shown in Table 2-C.
Table 2-C : Projected population figures for Vadalur Town Panchayat
Year Population Growth rate

1991 23586
2001 26016 0.99
Final
2009 30000 1.80
Report
Average 1.39
2013 31705
2018 33972
2023 36402
The water demand estimation done by TWAD board for Vadalur town
Panchayat is 2.18 MLD for intermediate year 2023 as reported by Town
Panchayat officials. On the basis of 70 lpcd, the projected population would be
31150 which are slightly on the lower side. Hence the projection done based on
average growth rate method is taken into consideration for future planning
purposes.
TNUIFSL 2-5
2.3SOCIAL CHARACTERISTICS
T
2.3.1 SOCIAL COMPOSITION
As per census 2001, SC population is about 13 percent of the total population

N
whereas ST population is insignificant which comes around 1 percent of the U
total population as shown in Table 2-D.
D
Table 2-D Social Composition
P
Social Composition Male Female Total % share to total
SC Population 1615 1643 3258 12.52

ST Population 184 173 357 1.37
Others 11335 11066 22401 86.10
Total Population 13134 12882 26016 100.00 III
2.3.2 GENDER RATIO
Gender ratio in Vadalur is lower than district urban and state urban gender ratio.
Further, Gender ratio in the case of population below 6 years of age is much
lower than the state urban and district urban gender ratio. However, Gender ratio
Final
among SC population is higher than district urban and state urban figures as Report
shown in Table 2-E.
Table 2-E Gender Ratio
Gender ratio Population Population below 06 SC
Male 13134 1475 1615

Female 12882 1362 1643
Gender ratio in Vadalur 981 923 1017
In Cuddalore Urban district 990 955 1014
In Tamilnadu urban 982 955 1001
TNUIFSL 2-6
2.3.3 LITERACY LEVELS
As per census 2001, 78 percent of total population (excluding 0-6 years of age)
T
are literates of which male accounted for 87 percent and female accounted for
68 percent. Literacy levels in Vadalur and its comparison with state urban and N
district urban figures are shown in Table 2-F.
U
Table 2-F Literacy levels
D
Literacy levels Total Male Female
P
Vadalur 77.72 87.31 68.02
Cuddalore dist Urban 82.32 89.50 75.09
Tamilnadu State Urban 82.53 88.97 75.99
2.4PHYSICAL CHARACTERISTICS III
2.4.1 GEOLOGY AND SOIL TYPE
The soil formation of the Cuddalore district is the combination of red soil, red
loam, clay cloam and sandy loam. Red soil is found in Panruti Taluk, Clay and
loam soils are found in Chidambaram, Vridhachalam and Cuddalore Taluks.
Final
Report
2.4.2 CLIMATE AND RAINFALL
Normal rainfall during North East Monsoon varies between 716.5 mm to 1346.1
mm and during South West Monsoon it varies between 373.6 and 340.3 mm
TNUIFSL 2-7
3 ECONOMIC DEVELOPMENT T
N
3.1ECONOMIC BASE OF THE TOWN U
Vadalur is predominantly dependent on agriculture and Neyveli Lignite
D
Corporation for its economic activities. Ramalinga Swamigal popularly called as
Vallalar had established Sathyagnana Sabai. The "Thai Poosam" function in P
December-January is a festival of this place. Religious tourism due to this
Sathyagnana sabai is also a major contributor for the economic growth of this
town other than NLC and agriculture.
III
3.2OCCUPATIONAL PATTERN
Vadalur is predominantly an agricultural based town and hence its dependency
on primary sector is very high when compared to district urban and state urban
areas. Its dependency on other service related activity(61% to total workers) and
household industrial activity (1.6% of total workers) is low when compared to
Final
the Cuddalore district urban and state urban occupational figures as shown in
Report
Table 3-A. Further, non workers percentage to total population is high when
compared to state urban non workers percentage to total population.
Table 3-A Occupational Pattern and its comparison
Household Total Non

Area Indicator Primary Industry Others workers workers
Vadalur % to total workers 37.6 1.6 60.8
District Urban % to total workers 18.9 3.9 77.2
State Urban % to total workers 14.0 6.3 79.6

% to total
Vadalur population 12.3 0.5 19.9 32.8 67.2
TNUIFSL 3-1
Household Total Non

Area Indicator Primary Industry Others workers workers
% to total T
District Urban population 6.1 1.3 24.9 32.3 67.7
% to total N
State Urban population 5.3 2.4 29.9 37.5 62.5
U
3.3INDUSTRIES D
Vadalur has Neyveli Lignite Corporation (NLC) in its vicinity. SIDCO had P
established one industrial estate in vadalur but not of much success. Other than
this, one sanitary ware industry is in operation providing employment to the
residents of Vadalur.
3.4TOURISM POTENTIAL III
Vadalur has Sathyagnana Sabai to attract religious tourists and in addition it

has various renowned places around which are listed below:
3.4.1 CHIDAMBARAM
Final
Chidambaram is one of the important tourist centres in Tamil Nadu. Various
Report
renowned places around Chidambaram are given here:
3.4.1.1 LORD NATARAJA TEMPLE
This ancient famous temple is fortified and centrally located in the town,
covering an extent of approximately 43 acres. There are three prakaras in which
first Prakara is of the sanctum of the Lord Siva in dancing form and second
prakara comprising of Nirthiya sabha, Devasabha, Sarasamoorthy sannathi and
Balathandayuthapani sannadhi and in the third prakara all other deities and
sannathies are located.
TNUIFSL 3-2
3.4.1.2 THILLAI KALIYAMMAN TEMPLE
This temple is located at the fringe of the town in remembrance of the dance
competition of Lord siva and sakthi. The Lord Siva won and Parvathi was asked
T
to go out of the town. Since Thillaikali is incornation of Parvathi, the temple N
has been constructed by the king kopperum chingan.
U
D
3.4.1.3 ANANDEESWARAR TEMPLE
This temple is of Saint Thiruneelakandar who took holy bath with his wife in the P
temple tank and came out youthful by the blessing of Lord Siva. There are two
festivals celebrated annually called as Kalambula Nayanar festival in the Tamil
months of Karthigai and Thiruneelakanda Nayanar festival during the Tamil
month of Thai.
III
3.4.2 PICHAVARAM
It is situated 16 kms east of Chidambaram and located in a most beautiful scenic

spot. It is spreaded over 2800 acres of mangrove forest. This place is formed in
the backwaters, which are interconnected by the Vellar and Kollidam systems.
Final
Thus, there is abundant scope for water sports, para-sailing, rowing and
Report
canoeing. Boating, accommodation and restaurant are offered by the Tamil
Nadu Tourism Development Corporation. The mangroves here are the healthiest
mangroves in the world.
TNUIFSL 3-3
T
4 PHYSICAL INFRASTRUCTURE N
Infrastructure facilities play an important role in fostering economic growth and
U
enhancing public welfare. By and large, the infrastructure may be divided into
two categories: D
Physical infrastructure including Water supply, Drainage, Sewerage, P

Solid Waste Management, Electricity, Telecommunications and so forth;
and
Socio-economic infrastructure including Education, Health, other

Community facilities, Cold storages, Warehouses, Markets, Banks and
Financial Institutions.
III
This chapter deals with Physical Infrastructure which includes Water Supply,
Sewerage and Sanitation, Storm water drainage, Solid Waste Management
Roads and Street Lighting.
4.1WATER SUPPLY
Final
4.1.1 WATER SUPPLY SOURCES Report
Vadalur has safe drinking Water Supply Scheme initiated in 1993-94 with bore
wells as a source, implemented at a sanctioned grant cost of Rs. 75 lakhs. In
order to reduce water scarcity, in the year 1998 government has sanctioned
additional Rs. 102.95 lakhs for laying 18.776 Km distribution lines, for
constructing 2 over head tanks and for laying 4 bore wells. TWAD board was
entrusted to implement the above work and from 2001 onwards the
improvement scheme is in operation.
TNUIFSL 4-1
From 2008 onwards, TWAD board is implementing Water Supply Improvement

Scheme to Vadalur Town Panchayat area under Minimum Need Programme at
an estimated cost of Rs. 99.6 lakhs in which 20% is the Town Panchayat T
contribution. Under this Scheme various works have been undertaken and the
N
status is tabulated below:
Table 4-A : Water Supply Improvement Scheme under Minimum Need Programme U
S.No Description of work Status as on 07/07/2009 D
1 Chinnakoilkuppam – OHT of 30,000 litres capacity Completed
Visvakarma Nagar – Providing bore well, pump P
2 Completed
room, pump set, pipeline and 30,000 litres OHT
Serakuppam Chinna colony – OHT of 30,000 litres
3 Completed
capacity
4 Serakuppam – borewell Completed
III
Kattukollai – providing additional bore well, pump
5 Completed
room, pumpset, pipeline for existing OHT
Parvathipuram – providing additional bore well, Pumpset to be erected. Other
6
pump room, pumpset, pipeline for existing OHT works completed
R.C Savariyor Nagar – OHT of 60,000 litres
7 Completed Final
capacity
Report
Nagesan Chettiyar Nagar - OHT of 60,000 litres
8 Completed
capacity
Moolakuppam Colony and Thangaraj Nagar –
9 providing borewell, pumproom, pumpset, pipeline Completed
and 30,000 litres OHT
Boomithanam Nagar - providing borewell, Borewell pump room
10 pumproom, pumpset, pipeline and 60,000 litres completed. Pumpset to be
OHT erected. OHT under progress
Borewell, pumproom, pipeline
Maruthi Nagar - providing borewell, pumproom,
11 work completed. Pumpset to be
pumpset, pipeline and 60,000 litres OHT
erected. OHT to be started
TNUIFSL 4-2
S.No Description of work Status as on 07/07/2009

Ragavendra Nagar - providing borewell, Borewell, pumproom, pipeline
12 pumproom, pumpset, pipeline and 60,000 litres work completed. OHT work T
OHT under progress
N
Parvathipuram South – 1 lakh litres OHT,
13 completed
Pumproom U
Vadalur has 23 bore wells supplies 1.86 MLD during normal days and 1.56
D
MLD during summer. Ayyaneri which gets water from NLC water channel
supplies 0.02 MLD resulting in a total water supply of 1.88 MLD during normal P
and 1.58 MLD per day during summer season.
S.No Bore well location Pumpset details

40HP submersible -1
20 HP mono -1
III
15 HP mono – 1
1 Vallalar Gnana Sabai
5 HP mono – 1
40, 30, 20, 15,10 HP stand by motors
– 1 each
2 Venkattankuppam 12.5 HP Submersible
Final
3 Cinnakovilkuppam 2 HP submersible
Report
4 Behind Town Panchayat 15 HP submersible
5 Aabattaranapuram below tank 30 HP submersible
6 Aabattaranapuram near tank 25 HP submersible
7 Below Sandy tank 25 HP submersible
8 Seshayee Nagar 15 HP submersible
9 Parvathipuram Indira Nagar 15 HP submersible
10 Saveriyar Nagar 15 HP submersible
11 Ganapathy Nagar 15 HP submersible
12 Ganapathy nagar
13 Jaipriya Nagar 121/2 HP submersible
14 NLC officer nagar 121/2 HP submersible
TNUIFSL 4-3
S.No Bore well location Pumpset details

15 A. Puram Pottavezhi street 15 HP submersible
Ladies toilet near R.C. Colony T
16 1 HP submersible
Tamarai kulam
N
17 Ladies toilet near Serakuppam school 1 HP submersible
Ladies toilet near Poosalikuppam U
18 1 HP submersible
school
D
19 Bus stand near Pay and Use 1 HP submersible
20 Serakuppam 15 HP submersible P
21 Barbar Kudiyiruppu 5 HP submersible
22 Poosalikuppam near school 15 HP submersible
23 Naagesan chettiyar nagar inside park 15HP submersible
4.1.2 WATER SUPPLY SYSTEM III
29 over head tanks with a combined capacity of 29.5 lakh litre capacity are
constructed all over the town to supply water and the locations are tabulated
below:
Location of OHT Capacity in lakh Location of OHT Capacity in lakh

Final
litres litres
Report
1.Sabha pump 4 15.Maruvai china colony 0.6
room
2.Kattukollai 4 16.Poosalikuppam 1
3.Abbataranapuram 3 17. Chinnakovilkuppam 0.3
4.Weekly Market 3 18. Seshayee Nagar 1
5.Behind Office 1 19.R.C. Saveriyor nagar 0.6
6.Vallalar Nagar 1 20. Venkatankuppam 0.6
7.Jayapriya Nagar 1 21. Naagesan chettiyar 0.6
Nagar
8.Ganapathy Nagar 0.6 22. Abbataranapuram Pumping line
9.NLC officer 0.6 23. Viswakarmaga nagar 0.3
TNUIFSL 4-4
Location of OHT Capacity in lakh Location of OHT Capacity in lakh

litres litres
nagar T
10.Indira nagar 0.6 24. PArvathypuram 1
N
amman kovil street
11.Jothi nagar 0.6 25. Abbataranapuram 1 U
south street
12.Pottavezhi 0.6 26. Boomidana iyakkam 0.6
D
Street P
13.Mudithiruthuvor 0.3 27. Maruthi Nagar 0.6
colony
14.Serakuppam 0.1 28. Moolakuppam 0.3
Colony
29. Ragavendra city 0.6 Total capacity 29.5 III
Vadalur has 2334 no of assessments having house service connections out of
total 8948 assessments. Out of 2334 household service connections, 2297 are
domestic water connections and 37 are Non domestic connections.
Table 4-B Water Supply system in Vadalur

Final
Description Details
Report
Source of Water Supply : Bore wells
Water Supply Agency : Town Panchayat
Total Storage Capacity : 29.5 lakh litres
Description regarding Connections
Domestic : 2297
Commercial : 37
Total : 2334
No of Stand posts 700
No of public wells 15
TNUIFSL 4-5
In addition, 700 public fountains (stand Posts) have been provided within the
town. Chlorination method is followed for treating raw water at each tanks
mentioned above. T
4.1.3 WATER AVAILABILITY N
Water is supplied one time in the morning for 2 hours everyday between 6 – 8 U
AM. Overall, 63 LPCD water is being supplied by taking into consideration the
D
population for 2009 would be 30000.
P
4.1.4 SERVICE ADEQUACY
Table 4-C : Performance Indicators for water supply in Vadalur
Normative
S.No Indicators Unit Current status
standard
III
1 Daily per capita supply Litres 63 70/100
2 Roads covered with distribution network Percent 83 > 100
3 Storage capacity with respect to supply Percent 157 33
Available Treatment capacity with respect to
4 Percent 100
supply NA
Final
5 Assessments covered by service connections Percent 26 85
Report
Proportion of non domestic service
6 Percent >5
connections 2
7 Slum population per stand post Persons NA 150
4.1.5 SECTORAL ISSUES
Dependent entirely on bore wells for water supply requirements
Per capita water supply is low (63lpcd) against the standard norm of 70
lpcd.
17% of the existing roads are not covered by Water Supply distribution
network
TNUIFSL 4-6
Only 26% of the assessments are having household service connections

(HSCs)
4.1.6 WATER SUPPLY DEMAND ASSESSMENT T
Table 4-D : Water supply demand for the next fifteen year period N
Particulars 2009-10 2013-14 2018-19 2023-24
U
Vadalur projected population 30000 31705 33972 36402
Water Supply MLD 2009-10 2013-14 2018-19 2023-24 D
Vadalur water demand @ 70 lpcd for towns less
than 50,000 population (desirable) 2.10 2.22 2.38 2.55
P
Existing and proposed Supply in mld 1.88 1.88 1.88 1.88
Gap 0.2 0.3 0.5 0.7
Water Treatment Plant capacity in MLD 2009-10 2013-14 2018-19 2023-24

Demand for treatment plant capacity 2.10 2.22 2.38 2.55
Treated water supply 0.0 0.0 0.0 0.0
Gap 2.1 2.2 2.4 2.5 III
Water Distribution Network in Kms 2009-10 2013-14 2018-19 2023-24
Existing distribution length in Kms 65.0 65.0 65.0 65.0
Road length in Kms (exisitng and proposed) 78.1 78.1 78.1 78.1
Gap 13.1 13.1 13.1 13.1
Per Capita road length of 1.5 meter is considered for calculation
Water Service connections in Nos 2009-10 2013-14 2018-19 2023-24
Final
No of Assessments 8948 9456 10133 10858
No of service connections 2334 4324 6623 9229 Report
% service connections existing & proposed 26.1 45.7 65.4 85
Gap 58.9 39.3 19.6 0.0
Assessments increased on the basis of Assessment / population ratio
Service connections are proposed to be 85% by 2023-24
Storage capacity in MLD 2009-10 2013-14 2018-19 2023-24
Existing & Proposed Storage Capacity in MLD 2.95 2.95 2.95 2.95
Storage capacity demand in MLD 0.69 0.73 0.78 0.84
Gap in MLD -2.3 -2.2 -2.2 -2.1
TNUIFSL 4-7
4.2SEWERAGE AND SANITATION

T
4.2.1 SEWERAGE SYSTEM IN VADALUR
Vadalur currently has no underground sewerage system. Night soil is disposed

N
normally through individual toilets with septic tanks and low cost sanitation U
facilities. 4385 houses out of 8021 houses (54%) within the town have
individual toilets with septic tank as safe mode of disposal whereas remaining D
46% has no sanitation facilities. For Public purpose, 3 free public convenience
P
units have been constructed along with one Pay and Use in the town. The road
side drains constructed are used for disposing both waste water and rainwater.

III
46% households have no sanitation facilities
No sullage lorry available for septic tank cleaning since town has no
sewerage system and dependent mainly on septic tanks
4.2.3 SEWERAGE DEMAND ASSESSMENT

Table 4-E : Sewerage demand for the next fifteen year period Final
Particulars 2009-10 2013-14 2018-19 2023-24 Report
Vadalur projected population 30000 31705 33972 36402

Sewage generation in MLD 2009-10 2013-14 2018-19 2023-24
Vadalur sewage generation 1.7 1.8 1.9 2.0
Vadalur proposed Sewage Collection 0.0 0.0 0.0 0.0
Gap 1.7 1.8 1.9 2.0
STP capacity in MLD 2009-10 2013-14 2018-19 2023-24
Capacity of proposed treatment plant 0.0 0.0 0.0 0.0
Gap 1.7 1.8 1.9 2.0
Sewer connections in Nos 2009-10 2013-14 2018-19 2023-24
Proposed connections under UGSS 0 0 0 0
Demand for sewer connections 6264 6620 7093 7600
Gap 6263.6 6619.5 7093.0 7600.3
Sewer Network in Kms 2009-10 2013-14 2018-19 2023-24
Sewer Network in Kms (Proposed ) 0.0 0.0 0.0 0.0
TNUIFSL 4-8
Sewer Network Demand 66.4 66.4 66.4 66.4

Gap 66.4 66.4 66.4 66.4
4.3STORM WATER DRAINAGE N
The total length of the Storm Water Drains constructed within Vadalur is around U
3.994 Kms which is single side brick lining drains and 11.570 Kms double side
brick lining drains.
D
P
4.3.1 SERVICE ADEQUACY
Table 4-F : Performance indicators for Storm Water Drainage in Vadalur
Current Normative
S.No Indicators Unit Remarks
Status Standard
III
Road length covered
Most of the drains
1 with pucca storm water Percent 20 130
are kutcha drains
drainage

Final
All drains are open Report
Only 20 % of the existing roads have Pucca storm water drains.
4.3.3 STORM WATER DRAINAGE DEMAND

ASSESSMENT
Table 4-G : Storm water drainage demand for the next fifteen year period
Storm water drainage in Kms 2009-10 2013-14 2018-19 2023-24

Vadalur existing SWD 15.564 15.564 15.564 15.564
Storm water drain demand 101 101 101 101
Gap 86 86 86 86
TNUIFSL 4-9
4.4SOLID WASTE MANAGEMENT

T
4.4.1 GENERATION AND COLLECTION
Vadalur Town generates around 2.5 ton of Garbage per day at the rate of 83
N
grams per capita per day. Waste is being collected in all the 18 wards. 16% of U
the total assessments are covered under Door to Door waste collection system
whereas 22.5% of the total assessments are actively involved in waste D
segregation at source. Waste collected is segregated into degradable, non-
P
degradable and recyclable and its details are shown in Table 4-H .
Table 4-H Waste Composition
S.No Waste Type Quantity in MT Percentage share

1 Biodegradable 1.5 60
III
2 Non bio degradable / 1
Recyclable 40
3 Total 2.5 100
10 concrete waste bins of 0.5 Kg capacity is placed all over the town for
Final
collection purpose. Further, it is proposed to purchase 100 cubical bins for waste Report
collection purpose. Vadalur Town Panchayat has the staff strength of 22 sanitary
workers. Other than departmental workers, 2 Self Help Groups are also been
involved in waste collection and segregation. As a part of collection system, 8
pushcarts, 1 tricycle are engaged in primary waste collection.
4.4.2 DISPOSAL AND TREATMENT FACILITIES
One mini lorry and one tractor trailer is in operation for secondary waste
collection system and disposal. Town Panchayat has 1.5 acre land in
Poosalikuppam in ward No.02 for waste disposal and treatment. 6 rectangular
tanks within an AC sheet shed with water provision are used for decomposing
TNUIFSL 4-10
the degradable waste. Vermi Compost yard is located at R.K.Naidu Colony,

started one year back at a cost of Rs.7 Lakhs. The manure is sold at Rs.4 per Kg
The recyclable waste like old plastic item, milk cover, oil cover, water bottle,
T
TV cover, cardboard box, glass etc are sold at around Rs.500 per month. One N
Industrial unit in Vadalur has agreed to sponsor 1000 bins to the households.
U
The Town Panchayat pays Rs.1200 per women representative of the SHG group
for manure treatment. The Town Panchayat has started collecting minimum D
amount of Rs.10 as user charges from around 290 households.
P
4.4.3 ADEQUACY OF SERVICES
Table 4-I : Performance Indicators for Solid Waste Management
Current Normative
Indicators Unit Status Standard III
Waste generation per Capita per day Grams 83.3 < 350 grams
Collection efficiency Percent 84 100
% of assessments covered by Door to Door
collection Percent 16.2 100
% of assessments involved in waste segregation Percent 22.5 100
Final
Conservancy staff per Km persons 0.3 2 Report
% capacity of Fleet vehicles to waste generated percent 32
Only 16% of the total assessments are covered by Door – Door

collection system
Only 22% of the total assessments are involved in waste segregation
State inadequacy (1 person per 3.5 Km against the standard norm of 1

person per 0.5 Km)
TNUIFSL 4-11
4.4.5 SOLID WASTE MANAGEMENT DEMAND

ASSESSMENT
T
Table 4-J : Solid waste Management demand for the next fifteen year period
N
Particulars 2009-10 2013-14 2018-19 2023-24
Vadalur projected population 30000 31705 33972 36402 U
Solid waste generation 2009-10 2013-14 2018-19 2023-24
Per capita waste in grams per day 83 90 100 110 D
Vadalur waste generation 2.5 2.9 3.4 4.0
Growth rate assumed 2.00%
P
4.5ROADS, TRAFFIC AND TRANSPORTATION
4.5.1 REGIONAL NETWORK
Vadalur town is centrally located between Vikiravandi – Kumbakonam – III

Thanjavur National Highway (NH – 45C) road and Cuddalore – Virudhachalam
– Salem state highway (SH -10).
Figure 4-1 : Regional Network Linkages
Final
Report
The Town is located 200 kms south of State Capital Chennai and 36 kms west of
District Head Quarters Cuddalore. Vadalur town is very well connected by buses
TNUIFSL 4-12
to Chennai, Virudhachalam, Chidambaram, Cuddalore, Kumbakonam and

Thanjavur.
Vadalur has railway station in Cuddalore Salem Broad gauge line running via
T
Virudhachalam. Currently passenger train is being operated between Cuddalore N
and salem stops at Vadalur railway station. The nearest airport is in Tricy which
is 150 km away from Vadalur. U
D
4.5.2 CITY LEVEL ROAD NETWORK
The total road Length within Vadalur is 78.063 Km. Out of 78.063 km road
P
length, 46.136 km are built with bituminous road, 7.21 km roads are made up of
Cement Concrete, 12.373 Km are made up of WBM and Kutcha road constitutes
12.344 kms. Road length and its type are shown in Table 4-K.
Table 4-K: Road network in Vadalur III

Road type Length in Kms Percentage Share
Earthen 12.104 CC Earthen
9% 16%
Gravel 0.24 Gravel
0%
WBM 12.373 WBM
16%
BT 46.136
Final
CC 7.21 Report
BT
59%
Total 78.063
4.5.3 PUBLIC TRANSPORT SYSTEM
The main mode of transportation is buses operated both by Government

Transport Corporation and private owners from Vadalur bus stand. Vadalur bus
stand has 10 parking bays, 1 Pay and Use toilets, 1 free toilet and one transport
time keeping booth. Bus stand has 219 shops for revenue generating purpose.
Nearly 250 buses enter inside the bus stand in a day. One cycle shed is given on
lease for two wheeler and bicycle parking.
TNUIFSL 4-13
16% of the roads are kutcha earthen roads T

16% of the roads are WBM roads
N
4.5.5 ROAD NETWORK DEMAND ASSESSMENT
U
Table 4-L : Road Network demand for the next fifteen year period
D
Particulars 2009-10 2013-14 2018-19 2023-24
Vadalur projected population 30000 31705 33972 36402 P
Road network 2009-10 2013-14 2018-19 2023-24
Existing road network in Kms 78.1 78.1 78.1 78.1
Road length demand 78.1 78.1 78.1 78.1
Gap 0.0 0.0 0.0 0.0
Per capita road length available is 2.6 meters which is greater than the standard requirement of 1.5 m /
person
III
4.6STREET LIGHTING
Vadalur has 1665 street lights positioned all over the Town Panchayat area in
which 1239 lights are 40 W tube lights, 423 lights are 250 W Sodium Vapor
lamps and 3 High Mast lights.
Final
Table 4-M : Ward wise street lighting details
Report
Ward No HM SV 250 W Tube 40W Total
1 33 116 149
2 20 85 105
3 17 52 69
4 23 86 109
5 21 62 83
6 2 41 70 113
7 22 54 76
8 14 63 77
9 26 40 66
10 13 41 54
11 1 34 86 121
12 29 97 126
13 14 60 74
14 14 72 86
TNUIFSL 4-14
Ward No HM SV 250 W Tube 40W Total

15 11 61 72
16 18 55 73
T
17 32 63 95
18 41 76 117
Total 3 423 1239 1665 N
As a part of energy saving mechanism, Town Panchayat has placed 10 CFL
U
lamps with timer switches. Remaining 80 switches are manually operated. All
the fittings have conventional chokes which can be converted into electronic D
chokes. Ward wise street lighting details are shown in Table 4-M.
P
4.6.1 ADEQUACY OF SERVICES
Table 4-N : Performance Indicators related to Street Lighting
Indicators Unit Current status Norms/Standards

Spacing between lamps Meters 46.6 30 III
Proportion of tube lights W.R.T to total Percent 74.57 60
Proportion of high power fixtures W.R.T to total Percent 25.43 40

Final
Spacing between lights is 46 Meters against the norm of 30 meters
Report
Energy saving devices is not yet adopted like solar lamps, Timer
switches, electronic chokes, 36W tube lights instead of 40 W tube lights.
4.6.3 STREET LIGHTING DEMAND ASSESSMENT

Table 4-O Street lighting Demand for the next fifteen year period
Street Lighting 2009-10 2013-14 2018-19 2023-24

Vadalur existing lights 1675 1675 1675 1675
Road length in Kms 78.1 78.1 78.1 78.1
Street light demand @ one light per 30 m 2602 2602 2602 2602
Gap 927 927 927 927
TNUIFSL 4-15
5 SOCIO-ECONOMIC INFRASTRUCTURE T
N
The Socio-economic infrastructure determines the development status of any
U
human settlement and this chapter covers Recreation and other amenities.
D
5.1RECREATION
P
Vadalur has 2 parks one near Vadalur Town Panchayat office and another near
Government hospital, both developed with the help of District Collector’s
Development Fund. Additional 2 parks have been developed one in front of
Town Panchayat office and another all along the median in Cuddalore –
Virudhachalam state highway. Town has additional 43 approved layouts handed III
over to the Town Panchayat which needs to be developed and the list is enclosed
in the annexure.
5.2OTHER AMENITIES
Vadalur has banking facilities provided by Indian Bank in ward No. 01, Indian Final
Oversees Bank in ward No.06 and Central Co-op Bank in ward No. 06. It has Report
Muruga theatre in ward No. 06 for entertainment purpose. One community hall
is proposed in ward No. 06 under MLA fund (10 lakhs MLA fund + 10 lakhs
general fund).
Town has 4 lodges in ward nos. 6, 1 and 5. Weekly market is running on lease
land belongs to selvi amman koil in an area of 3 acres in ward No. 06. Weekly
market can be developed in Ragavendra city location as suggested by Town
Panchayat officials. Town has Slaughter house behind Town Panchayat office in
an area of 1000 Sq. ft. Exisitng Town Panchayat office has adequate space as
suggested by Town Panchayat officials.
TNUIFSL 5-1
Town has 8 burial grounds out of which 3 is in Abbataranapuram in ward Nos. 3

and 04, 1 in seerakuppam in ward No.5, 2 in Parvathipuram in ward Nos. 11 and
18 and 1 in ward no. 17. All the burial grounds have burning ghats. Town T
Panchayat has no commercial complexes other than 219 shops in bus stand
N
premises for revenue generating purpose. Town has 8 water bodies in the form
of lakes and ponds within the Panchayat limit. U
D
5.3PROBLEMS AND ISSUES
Table 5-A : Issues pertaining to Socio-Economic Infrastructure P
Sector Issues
• 43 approved layouts are still undeveloped
• Town has no land for Weekly market and the existing land is on
lease III
Socio-economic
• All the 8 Burial grounds have infrastructure inadequacies
Infrastructure
• Town has no commercial complexes for revenue generation.
• Town has 10 water bodies in the form of ponds and lakes which
are poorly maintained.
Final
Report
TNUIFSL 5-2
6 SLUMS AND URBAN POVERTY T
N
As per Census of India, the slum areas are broadly defined as :-
U
All specified areas in a town or city notified as ‘Slum’ by State/Local
Government and UT Administration under any Act including a ‘Slum
Act’. D
All areas recognized as ‘Slum’ by State/Local Government and UT P

Administration, Housing and Slum Boards, which may have not been
formally notified as slum under any act;
A compact area of at least 300 persons or about 60-70 households of

poorly built congested tenements, in unhygienic environment usually
with inadequate infrastructure and lacking in proper sanitary and
drinking water facilities. III
6.1SLUMS IN VADALUR
In Vadalur, 15 un-notified slums are in existence. All the 15 un-notified slums
together have the population of 6370 which is equivalent to 21 percent of the
total Vadalur current population. Slums in Vadalur are shown in Table 6-A.
Final
Table 6-A Slums in Vadalur Report
Un-Notified Slum
Population
Name
Male Female Total
Poosalikuppam 134 126 260
Thiruvalluvar Nagar 116 104 220
Nanthanar Nagar 116 124 240
Abatharanapuram 520 330 850
Chinnakoilkuppam 82 68 150
Thangaraj Nagar 101 79 180
Barbar layout 86 74 160
TNUIFSL 6-1
Kallukuzhi 232 218 450

R.C Colony 820 630 1450
Venkatankuppam adiena colony 170 130 300 T
Maruvai Chinna colony 223 197 420
N
Parvathipuram Pothiyankuttai 146 114 260
Indira Nagar 436 414 850 U
Nadasanar Nagar 92 58 150
D
Savariyor Nagar 232 198 430
Total 3506 2864 6370 P
6.2URBAN POOR IN VADALUR

Vadalur has 5.5% of the total population living below poverty line. Ward Nos
04 and 06 has BPL population more than 10 percent of the total BPL population. III
Ward wise BPL population is shown in Table 6-B.
Table 6-B Ward wise BPL population in Vadalur
BPL Percentage Share

Ward No Population
7% 2% 4%
1% 7%
3%
2007 3% 6% Final
5%
4% 10% Report
1 67
2 118
6% 4%
3 102 5%
11%
3%
8% 9%
4 171
5 69 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
6 174
7 145
8 131
9 50
10 86
11 94
TNUIFSL 6-2
12 67
13 88
14 47 T
15 49
N
16 14
17 121 U
18 40
D
Total 1633
P
6.3PROBLEMS AND ISSUES
• Slums are un-notified due to which Town Panchayat is not able to avail funds for
development purposes.
• 15 un-notified slums accommodate 21% of the total population. III
Final
Report
TNUIFSL 6-3
7 FISCAL STATUS T
N
7.1 BACKGROUND U
D
Tamil Nadu is the first State to have introduced a classification in the status of P
local bodies as ‘Town Panchayat’, which was planned as a transitional body
between Rural and Urban Local Bodies. The Town Panchayats were conferred
with individual administrative powers and unique functional characters have
been in existence for over a century. The Town Panchayats adopt well devised III
accounting and auditing procedures and the service delivery to the public has
been better. Town Panchayats are under the administrative control Municipal
Administration and Water Supply Department, at Government level.
Till 1981, the Town Panchayats were under the administrative control of
Directorate of Rural Development. During 1981, the Government vide G.O.
Ms. 828 Dated 7.5.1981, constituted a separate Directorate for the Town
Panchayats with the nomenclature of ‘Directorate of Town Panchayats’.
However the administrative control of the Directorate of Town Panchayats
continued to be with the Rural Development Department at the Secretariat as
they were governed under the Tamil Nadu Panchayats Act 1958. Final
Report
Following the introduction of 73rd and 74th amendments to the Constitution

of India in the year 1993, all the Town Panchayats were reconstituted under
the Tamil Nadu District Municipalities Act, 1920 and treated as transitional
area. i.e. an area in transition from rural area to an Urban area. Necessary
amendments were brought on to the Tamil Nadu District Municipalities Act,
1920 for this purpose and a separate chapter in respect of Town Panchayats
was inserted in the said Act. Consequently though the nomenclature ‘Town
Panchayat’ remained unchanged, the administrative control of the Directorate
of Town Panchayats was brought under the Municipal Administration and
Water Supply Department at the Secretariat.
TNUIFSL 7-1
Municipal Corporation Acts and the District Municipalities Act of the Tamil
T
Nadu authorizes Urban local bodies to levy, collect and appropriate such taxes,
N
duties, tolls and fees in accordance with the procedures subject to limits as
specified by the legislature. Besides these, the urban local bodies are also U
empowered with certain other financial powers. D
P
The Sources of income for a Town Panchayat can be broadly categorized as
own sources (Includes both Tax and Non Tax Revenues), and External Sources
(Assigned Revenues, Devolution Funds, Grants and Contribution). Besides the
Town Panchayats can also avail of loans/ Grants/ Contribution from III
Government(Central and State) and loans from various funding agencies such as
TUFIDCO, TNUIFSL, HUDCO, LIC and Banks etc, for undertaking specific
projects based on their credit worthiness.
The Town Panchayat’s Revenue Expenditure can be broadly categorized into

Personnel cost and Terminal and Retirement benefits, Operating Expenses,
Repairs & Maintenance Expenses, Programme Expenses Administrative
Expenses, Finance Expense, Provision for Depreciation. Besides the above,
significant amounts are required for undertaking capital works.
Final
Report
TNUIFSL 7-2
7.2 FINANCIALS T
Figure 7-1 Income & Expenditure Account
N
U
Income & Expenditure Account
D
350.00
300.00 P
Rs. in lakhs
250.00
200.00 TOTAL INCOME
150.00 TOTAL EXPENDITURE
100.00
50.00
0.00
2003- 2004- 2005- 2006- 2007- 2008- III
04 05 06 07 08 09 Un
audited
Years
Source : Annual Accounts of Vadalur Town Panchayat
Table 7-A Income & Expenditure Account Rs. in lakhs

2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
Un
Audited
Particulars
INCOME
Property Tax 19.19 16.61 17.89 18.79 20.33 29.69
Other Taxes(Profession Tax) 3.27 5.31 5.38 5.66 5.93 6.76
Asigned Revenue 20.69 19.26 11.21 25.04 46.54 62.23
Devolution Fund 31.46 35.93 56.55 59.99 79.32 68.75 Final
Service Charges & Fees 29.39 29.89 33.90 38.79 38.53 35.70 Report
License Fees 0.54 0.63 0.51 0.28 0.71 0.65
License fees under PFA act 0.04 0.03 0.02 0.03 0.03 0.03
Building License Fees 3.18 3.45 5.50 6.77 6.08 7.12
Advertisement Fees 0.02 0.02 0.03 0.02 0.00 0.00
Fees for bay and other receipts in the Bus
5.88 6.01 6.12 6.37 6.22 7.00
Stand
Slaughter House Fees 0.00 0.00 0.09 0.20 0.20 0.20
Cart Stand – Lorry Stand - Taxi Stand Fees 1.50 1.78 2.05 3.82 3.82 3.43
Fees for Fishery rights 0.00 0.02 0.01 0.13 0.00 0.00
Fees for Pay & Use toilets 2.71 3.25 3.96 4.90 4.90 2.45
Copy Application Fees 0.10 0.19 0.28 0.49 0.30 0.32
Initial amount for new water supply under
3.07 1.54 1.75 2.05 1.30 1.36
ground
Water supply connection charges 0.50 0.19 0.26 0.41 0.26 0.27
Metered / Tap rate water supply under
11.85 12.54 13.19 13.32 14.03 12.28
/ground
Others 0.00 0.23 0.13 0.00 0.68 0.58
TNUIFSL 7-3
Granted Contribution 1.85 5.20 0.97 1.08 0.04 0.00

Sales and Hire Charges 0.00 0.02 0.18 0.00 0.02 0.02
Other Income 41.95 53.04 42.61 67.12 48.17 52.76 T
Market fees – weekly market 1.73 1.82 1.76 2.11 2.14 2.17
Development charges 6.14 16.21 6.64 12.56 2.66 5.93 N
Rent on shopping complex 0.00 15.30 18.03 22.11 25.03 23.92
Rent on Buildings 20.51 0.01 0.01 0.00 0.02 0.02 U
Avenue Receipts including receipts from Tope 0.07 0.10 0.11 0.36 0.00 0.00
Interest from Bank 1.45 2.36 1.21 1.23 0.47 0.56 D
Projects Overhead Appropriation – Expenses 6.09 12.42 9.26 17.38 13.19 13.19
Garden /Park – Receipts 0.00 0.00 0.00 0.00 0.03 0.03 P
Income form road margins 2.10 2.76 3.56 3.63 3.71 4.55
Others 3.86 2.06 2.03 7.74 0.93 2.39
TOTAL INCOME 147.81 165.27 168.69 216.47 238.88 255.90
EXPENDITURE
Personnel Cost 17.61 18.26 17.29 24.39 30.11 35.80 III
Terminal and Retirement Benefits 0.36 0.14 0.16 0.00 1.73 0.00
Operating Expenses 52.01 71.36 67.32 75.88 68.81 70.65
Maintains of Garden / Parks 0.00 2.38 0.06 0.22 0.20 0.21
Power charges for Head water works /
pumping station / Booster station – water 21.11 37.76 35.07 24.46 17.71 17.99
supply
Power charges for street lights 18.39 11.40 13.57 28.36 37.34 38.97
Maintains Expenses for street light 8.60 15.57 13.90 18.06 7.96 7.85
Sanitary / conservancy expenses 1.97 0.91 1.58 1.01 1.48 1.46
Expenses on sanitary materials 1.85 3.27 3.04 3.75 4.10 4.16
Rent for Buildings / Lands 0.00 0.07 0.10 0.02 0.02 0.02
Others 0.09 0.00 0.00 0.00 0.00 0.00
Repairs and Maintenance Expenses 18.07 24.86 18.16 17.46 38.94 21.72
Office Building Power Charges 0.00 0.00 0.00 0.00 0.00 0.76
Maintenance – Office Building 0.00 0.40 0.06 0.28 0.44 0.35
Heavy Vehicle – Maintenance 1.34 1.37 1.49 1.81 1.97 2.88
Repairs & Maintenance Roads and
2.18 7.35 1.16 1.13 3.10 3.16
Pavements Final
Repairs & Maintenance – bridges & Flyovers 0.00 0.00 0.00 0.00 0.96 0.99 Report
Maintenance expenses – water supply / 12.35 13.99 13.47 12.87 12.55 13.58
sewerage system
Maintains charges payable to TWAD board /
metro water Board. Water chess to TN 0.00 0.00 0.68 0.00 19.92 0.00
pollution
Others 2.19 1.75 1.30 1.37 0.00 0.00
Programme Expenses 12.50 89.88 0.60 84.29 0.67 0.33
Prior Period Expenses 0.22 34.07 0.61 0.00 0.00 0.00
Administrative Expenses 6.03 7.34 6.39 8.13 9.16 7.11
Finance Expenses 5.83 5.53 25.17 27.57 1.70 1.13
Depreciation 54.82 78.12 72.16 90.28 59.63 68.95
TOTAL EXPENDITURE 167.45 329.55 207.85 327.99 210.75 205.69
SURPLUS OR DEFICIT -19.64 -164.29 -39.15 -111.52 28.13 50.21
Source: Annual Accounts. Vadalur Town Panchayat
TNUIFSL 7-4
T
7.3 ANALYSIS OF INCOME
N
Table 7-B : Income Analysis
U
2003-04
2004-05
2005-06
2006-07
2007-08
D
Particulars P
Sectoral Contribution to the Total Income
Property Tax 12.98% 10.05% 10.60% 8.68% 8.51%
Profession Tax 2.22% 3.21% 3.19% 2.61% 2.48%
Assigned Revenue 14.00% 11.65% 6.65% 11.57% 19.48%
Devolution Fund 21.28% 21.74% 33.52% 27.71% 33.20%
Service Charges & Fees 19.89% 18.09% 20.09% 17.92% 16.13% III
Granted Contribution 1.25% 3.15% 0.58% 0.50% 0.02%
Sales and Hire Charges 0.00% 0.01% 0.11% 0.00% 0.01%
Other Income 28.38% 32.10% 25.26% 31.01% 20.17%
Source: Analysis based on data provided by Vadalur Town Panchayat
Figure 7-2: Break up of Income for the year 2008-09(Un-Audited)
2008-09 Un Audited
12%
21%
3% Property Tax
0% Other Taxes(Profession Tax)
Asigned Revenue
Final
0%
Report
Devolution Fund
24% Service Charges & Fees
14%
Granted Contribution
Sales and Hire Charges
Other Income
26%
Source: Vadalur Town Panchayat
The Income of the Town Panchayat has grown from Rs.148 lakhs in the year 2003-04 to
Rs.239 lakhs in the year 2007-08 with a CAGR of over 12% over the last few years.
TNUIFSL 7-5
7.3.1 OWN SOURCES

T
Taxes N
Taxes consisting of Property and Professional Taxes contribute about 11% & 15%
U
of the Total Income in the last few years. Taxes have been growing at a CAGR of
D
close to 4% over the last few years
P
Property Tax:
The most important category in the own sources of income is the property tax. This
tax is imposed on land and buildings depending upon their class of areas & nature
of use. About 75% of the tax revenue comes through property tax collections. III
CAGR of property tax revenue has been less than 2% in the last few years
Table 7-C Property Tax Particulars

Category Particulars
No. of Assessment 2007-08 8587
% Increase in Number Assessments for the last few years 1.27%
CAGR in Property Tax Revenue over the Last few years 1.45%
Total Property Tax (Rs. in Lakhs in 2008-09 (Un-
Audited0 29.69
Number of sanctioned Staff in Revenue Department –
Bill Collector 4
Revenue per sanctioned person in revenue section (Rs. in
Lakhs) 7.42 Final
Average Tax Demand per property (Rs.) 236.75 Report
Table 7-D Property Tax Assesses for the last few years
Particulars 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Residential 7486 7511 7573 7623 7652 7956
Commercial 837 839 845 845 850 902
Industrial 77 80 82 82 85 90
Total 8400 8430 8500 8550 8587 8948
TNUIFSL 7-6
Profession Taxes:
T
It has contributed about 15 % of the total taxes in the last few years. The revenue from
professional taxes has been growing at a CAGR of 16 % in the last few years
N
U
Table 7-E Profession Tax Particulars
Total Professional Tax Revenue (Rs. in Lakhs 2008-09) 6.76
D
Slab for Professional Tax ( Half yearly) w.e.f. 01-10-2008
P
Rs.21000 Nil
Rs.21001to Rs.30000 Rs.95
Rs.30001 to Rs.45000 Rs.240
Rs.45001 to Rs.60000 Rs.470
Rs.60001 to Rs.75000 Rs.710
Above Rs.75001 Rs.940
III
Table 7-F No of assessments for Professional Tax
Year No. of Assessments
2003-04 876
2004-05 889
2005-06 911
2006-07 909
2007-08 799
2008-09 611
Final
Report
Non Tax Revenues
The Town Panchayat earns revenue from Non-Tax sources such as revenue from
Service Charges and Fees and Other Income. The Non-Tax Revenue has grown at
a CAGR of around 5% in the last few years. Close to 50% of the revenue of the
Town Panchayat comes from non tax revenue.
TNUIFSL 7-7
Service Charges and Fees
T
The major sources of income under this head are Building License Fees, initial
N
amount for new water supply and metered tap rate water charges etc. This income
has grown at a CAGR of around 7% in the last few years U
D
Other Income
P
The “Other income” consists mainly of Income from Weekly market and Rent
from shopping complex. CAGR of “other Income” has been around 3.50% in last
few years
III
7.3.2 EXTERNAL SOURCES
Assigned Revenue
Assigned revenues include revenues transferred to the Town Panchayats by the

GoTN under specific acts. These are transferred to the Town Panchayats as their
share of taxes levied and collected by the GoTN. These include duty on transfer of
property, entertainment tax, surcharge on sales tax, and other assigned revenues if
any. Among all these, duty on transfer of property and entertainment tax is the
most significant ones.
Devolution Fund
Based on the Second State Finance Commission recommendations, GOTN
Final
transfers 8% of its state revenue to the local government. Inflows from Devolution Report
Funds have grown by 26% in the last few years
7.4 ANALYSIS OF EXPENDITURE
The Revenue Expenditure of the Town Panchayat has been analyzed based on
expenditure heads which can be broadly classified under the major heads outlined
below:
• Personnel costs
• Operating Expenses
• Repairs & Maintenance Expenses
TNUIFSL 7-8
• Programme Expense
• Administrative Expenses
T
• Finance Expenses
N
• Depreciation
Table 7-G : Expenditure Analysis U
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
Un
audited
D
Particulars
Percentage share of expenses to total expenses
P
Personnel Cost 10.52% 5.54% 8.32% 7.43% 14.29% 17.40%
Terminal and Retirement Benefits 0.21% 0.04% 0.08% 0.00% 0.82% 0.00%
Operating Expenses 31.06% 21.65% 32.39% 23.13% 32.65% 34.35%
Repairs and Maintenance
Expenses 10.79% 7.54% 8.74% 5.32% 18.48% 10.56%
Programme Expenses 7.46% 27.27% 0.29% 25.70% 0.32% 0.16% III
Prior period Expenses 0.13% 10.34% 0.29% 0.00% 0.00% 0.00%
Administrative Expenses 3.60% 2.23% 3.07% 2.48% 4.35% 3.46%
Finance Expenses 3.48% 1.68% 12.11% 8.41% 0.81% 0.55%
Depreciation 32.74% 23.70% 34.72% 27.52% 28.29% 33.52%
Source: Analysis based on data provided by Vadalur Town Panchayat
Figure 7-3 Break up of Expenditure for the year 20008-09 (Un-Audited)
2008-09 Un Audited Personnel Cost
17% Terminal and Retirement

Benefits
Operating Expenses
0%
34%
Repairs and Maintenance
Expenses
Final
Programme Expenses
Report
1% Administrative Expenses
34%
3%
Finance Expenses
0%
11% Depreciation
Source Annual Accounts of Vadalur Town Panchayat
The overall expenditure of the town has shown a fluctuating trend mainly on
account of programme expenses. CAGR of expenditure has grown by close to 6%
in the last few years.
TNUIFSL 7-9
Personnel Costs:-
This expense mainly includes the staff salaries, Terminal and retirement benefits
T
and allowances paid to the employees of the local body. This expense has grown
N
by 14.34% in the last few years.
U
Operating Expenses / Repairs & Maintenance D
Expenses relating to operations and Repairs and Maintenance are very critical
P
indicators of the service management and maintenance capabilities and
performance of the local body. This expense has grown by 11.36% in the last few
years.
Operating Expenses:- III

The Operating expense mainly consists of such expenses which are met towards
the infrastructure facilities provided by the local body like Power charges for Street
Lights, Maintenance Expenses for Street Lights, Sanitary Conservancy Expenses,
and Expenses on sanitary material etc. Operating expenses has grown by over 7%
in the last few years.
Repairs & Maintenance:-
Repairs & Maintenance expenses mainly consist of such expenses such as Heavy
Vehicle Maintenance, Maintenance expenses on account of water supply. This
expense has grown by over 21% in the last few years.
Final
Energy Costs:- Report
The energy costs for Water Supply for the year 2008-09 is 17.98 lakhs and that for
Street lighting is Rs. 38.96 lakhs. This accounts for 57% of the water supply
expenditure and 83% of the street lighting expenditure respectively. By
implementation of energy efficiency measures in water supply service delivery and
street lighting systems the reduction in costs can be achieved and monitored for
continuous energy savings.
Finance Expenses:-
Loan outstanding as on 31st March 2009 was Rs.35.12 lakhs.
TNUIFSL 7-10
T
7.5 SOURCE & USE OF FUNDS
N
Table 7-H Balance Sheet
U
Rs. in lakhs
D
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
Audite
Particulars P
Un
d
Uses of Funds
Fixed Assets 413.30 538.60 632.07 807.50 942.23 999.94
Project in Progress 2.02 0.00 3.11 0.00 0.00 0.00
Tax & Non Tax
Recoverable 83.69 64.59 63.60 64.30 63.86 63.59 III
Stock 0.67 0.17 0.17 0.17 0.17 0.17
Other Receivable/
Recoverable 21.94 16.72 19.09 27.88 21.11 21.32
Cash in Hand 2.40 2.50 3.02 2.55 3.79 8.95
Cash at Bank 69.87 47.73 26.95 13.55 36.94 103.71
TOTAL ASSETS 593.89 670.31 748.02 915.94 1068.08 1197.69
Sources of Funds
Loans 16.00 35.36 35.36 35.12 35.12 35.12
Deposits 24.98 37.80 38.32 36.20 43.01 42.41
Government
contribution/Mpl fund /
Private
Parties/Government
Grants 87.63 211.90 231.23 398.81 456.39 395.84
Accumulated depreciation 111.54 191.23 263.44 353.77 413.40 554.33
Accumulated surplus 345.34 181.10 141.95 30.42 58.54 108.75 Final
Others 8.40 12.92 37.73 61.63 61.62 61.23 Report
TOTAL LIABILITIES 593.89 670.31 748.02 915.94 1068.08 1197.69
TNUIFSL 7-11
T
N
Table 7-I: Fixed Assets U
Rs. in Lakhs
D
Audited
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
P
Un
Fixed Assets
Land - Gross Block 0.00 0.00 0.00 0.00 0.00 0.00

Buildings - Gross Block 65.46 77.88 96.42 127.83 152.53 162.53
Storm Water Drains,
Open Drains And III
Culvert 40.46 48.62 51.97 68.69 77.87 79.86
Heavy Vehicles - Gross
Block 1.15 1.15 1.15 1.15 11.13 11.13
Light Vehicles - Gross
Block 0.09 0.09 0.09 0.09 0.09 0.09
Other Vehicles - Gross
Block 0.08 0.08 0.08 0.08 0.08 0.08
Electrical Installations -
Lamps - Light 5.37 5.37 9.96 9.96 15.19 15.19
Plant And Machineries -
Gross Block 0.00 0.93 1.75 1.75 1.75 1.75
Roads And Pavements -
Concrete - Gross 26.48 39.12 56.79 71.33 122.93 136.93
Black Topped - Gross 128.27 208.65 239.64 332.19 357.51 385.51
Others - Gross Block 10.22 10.49 16.78 16.78 18.14 21.86
Instruments and
Equipments in Hospitals 0.00 0.00 0.00 6.38 6.38 6.38 Final
Report
Tools and Plants - Gross
Block 0.68 0.68 0.68 0.68 0.68 0.68
Public Fountains 0.08 0.08 0.08 0.08 0.08 0.08
Water Supply Head
Works, OHT Etc. 82.00 88.13 97.19 111.00 118.37 118.37
Drainage and Sewerage
Pipes, Conduits, C 0.00 0.00 1.39 1.39 1.39 1.39
Ground Water Wells /
Deep Bore - Wells 52.60 56.18 56.18 56.18 56.18 56.18
Hand Pumps - India
Mark - 11 0.00 0.78 0.78 0.78 0.78 0.78
Reservoirs 0.37 0.37 1.16 1.16 1.16 1.16
TOTAL 413.30 538.60 632.07 807.50 942.23 999.94
TNUIFSL 7-12
Figure 7-4 : Source of Funds as on 2008-09 (Un-Audited)
T
Loans & Advances
Sources of Funds 2008-09 N
Deposits
5% 3% 4% U
9%
Government contribution/Mpl fund /
Private Parties/Government Grants D
Diversion of funds
33% P
Provision for doubtful Collection of
Revenue Items
Accumulated depreciation
46% 0%
0% Accumulated surplus
III
Others
Source : Vadalur Town Panchayat
Figure 7-5 Use of Funds as on 2008-09 (Un-Audited)
2% Uses of Funds 2008-09

1%
Fixed Assets
5% 9%
Project in progress
0%
0%
Tax & Non Tax recoverable
Stock
Others Final
Receivable/Recoverable Report
Cash on Hand
83%
Cash in Bank
More than 80% of the funds have been deployed in creation of Fixed Assets. About
59% of the funds invested have been deployed in Infrastructure relating to storm
water drains and road works.
TNUIFSL 7-13
7.6 DEMAND COLLECTION AND BALANCE

T
Table 7-J: DCB for the Past 6 years Rs. In Lakhs.
N
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
U
Sl.No Particulars
Property Tax- Demand, Collection and Balance D
Total Number of
Assessment 8400 8430 8500 8550 8587 8587 P
A. Demand
1.Arrears 56.46 56.46 56.46 56.46 56.46 56.46
2.Current 19.19 16.61 17.89 17.89 20.33 29.69
3.Total 75.65 73.07 74.35 74.35 76.79 86.15
B. Collection III
1.Arrears 0.00 0.00 0.00 0.00 0.00 0.00
2.Current 19.19 16.61 17.89 17.89 20.33 29.69
3.Total 19.19 16.61 17.89 17.89 20.33 29.69
C. Balance
1.Arrears 56.46 56.46 56.46 56.46 56.46 56.46
2.Current 0.00 0.00 0.00 0.00 0.00 0.00
3.Total 56.46 56.46 56.46 56.46 56.46 56.46
Profession Tax- Demand, Collection and Balance
Total Number of
Assessments 876 889 911 909 799 611
A. Demand
1.Arrears 1.85 0.00 0.00 0.00 0.00 0.00
2.Current 3.26 4.48 4.59 4.59 4.98 5.63
3.Total 5.11 4.48 4.59 4.59 4.98 5.63
B. Collection
1.Arrears 0.22 0.00 0.00 0.00 0.00 0.00
2.Current 3.26 4.48 4.59 4.59 4.98 5.63
3.Total 3.48 4.48 4.59 4.59 4.98 5.63 Final
Report
C. Balance
1.Arrears 1.63 0.00 0.00 0.00 0.00 0.00
2.Current 0.00 0.00 0.00 0.00 0.00 0.00
3.Total 1.63 0.00 0.00 0.00 0.00 0.00
Water charges- Demand, Collection and Balance
Total Number of
Assessments 1918 2027 2106 2156 2235 2235
A. Demand
1.Arrears 0 0.00 0.00 0.00 0.00 0.00
2.Current 11.85 12.55 13.19 13.19 14.03 12.27
3.Total 11.85 12.55 13.19 13.19 14.03 12.27
B. Collection
1.Arrears 0.00 0.00 0.00 0.00 0.00 0.00
2.Current 11.85 12.55 13.19 13.19 14.03 12.27
3.Total 11.85 12.55 13.19 13.19 14.03 12.27
TNUIFSL 7-14
C. Balance
1.Arrears 0.00 0.00 0.00 0.00 0.00 0.00
2.Current 0.00 0.00 0.00 0.00 0.00 0.00 T
3.Total 0.00 0.00 0.00 0.00 0.00 0.00
Others N
Library Cess Demand, Collection and Balance
A. Demand U
1.Arrears 4.89 4.89 4.89 4.89 4.89 4.89
2.Current 1.99 1.73 1.86 1.86 2.12 3.05 D
3.Total 6.88 6.62 6.75 6.75 7.01 7.94
B. Collection P
1.Arrears 0 0.00 0.00 0.00 0.00 0.00
2.Current 1.99 1.73 1.86 1.86 2.12 3.05
3.Total 1.99 1.73 1.86 1.86 2.12 3.05
C. Balance
1.Arrears 4.89 4.89 4.89 4.89 4.89 4.89
2.Current 0.00 0.00 0.00 0.00 0.00 0.00 III
3.Total 4.89 4.89 4.89 4.89 4.89 4.89
7.7 OUTSTANDING LOAN AND NON-DEBT

LIABILITY
The Outstanding Loan balance and Non-Debt Liability of key components of Vadalur
Town Panchayat is represented in the table below:
Table 7-K : Outstanding Loan and Non-Debt Liability
Rs. in Lakhs
2008-09 Un Audited
Sl.No Particulars Final
1.Outstanding Principal on Loans Report
1 Loans From The Government 1.00
2 Loan From TUFIDCO 19.36
3 Loan From TNUDF 14.76
4 Advance 0.00
Total Loan Outstanding 35.12
2 Non-Debt Liability
1 Library cess 0.00
2 Sales Tax Payable 0.00
3 Income Tax Payable 0.00
4 Interest Payable 3.85
5 Group Insurance Schemes 0.60
TNUIFSL 7-15
8 INSTITUTIONAL CAPACITY ASSESSMENT T

N
8.1 STAFF STRENGTH U
Table 8-A : The Staff strength of the Vadalur Town Panchayat D
Executive Staff Sanctioned Appointed Post Vacant
P
Executive Officer 1 1 -
Junior Assistant 3 3 -
Bill Collectors 4 3 1
Record Clerk 1 1 -
Office Assistant 1 1 - III
Driver 1 1 -
Sanitary Workers 22 22 -
Electrician Grade I 1 1 -

o Presently there is 1 vacancy of Bill Collector against the sanctioned post of 4 nos.
o Staff Salary pay slip for all the sections have been enclosed in the Annexure
8.2 INSTITUTIONAL STRENGTHENING &

CAPACITY BUILDING
The following are some of the steps undertaken by the Town Panchayat for Institutional
Strengthening and Capacity building by introducing a system of accountability and
Final
responsibility within the system Report
1. Computerization & E-Governance
2. Training
3. Public Grievance Redressal Mechanism
4. Public Private Partnership including Privatization initiatives
5. Tendering Process
• Computerization & E-Governance

The Town Panchayat has initiated steps for computerization of Birth & Death, Salary,
Accounts and Property Tax records
TNUIFSL 8-1
• Training
Some of the details of latest training undergone by the staff are as below: T
Bhavani Sagar Training was provided to the Junior Assistant.
N
A.G Audit training was provided to the Executive Officer
U
• Public Grievance Redressal Mechanism
D
Complaint register is maintained for key sectors such as Public Health, Water Supply, and
Street Lights. Majority of complaints are related to Water Supply. The Public also approach
P
their respective ward councilors with their complaints on service delivery system. Complaints
are also received during Grievance day meetings held at the Collector office.
Public Private Partnership including Privatization initiatives
III
Payment per
Sector Name of the work Coverage
annum
Fitting of lamps (Materials are
provided by TP and only All the 18
Street Light Rs.72000
labour provided by Private Wards
Contractor)
Changing of Busted Pipes Rs.42000
(Materials are provided by TP All the 18 Appx. (Rs.18
Water Supply
and only labour provided by Wards per meter of
Private Contractor) pipe changed)
Rs.900 per
person per
Solid Waste Poosali
Door to door collection and month to the Final
Kuppam
Management Report
segregation Ward No.2 Self Help
(SWM)
Group
Members
User Charges for SWM: The Town Panchayat collects a Rs.10 from 290 households in
the prime locality
Tendering process:
The projects required for the infrastructure works are decided by the Council .The
Engineer prepares the estimate and the selected bid has to be approved by the elected
members.
TNUIFSL 8-2
T
9 SWOT
N
Based on Stake holder’s perception and view points expressed during our
U
consultation with the local stakeholders and on the basis of assessment done by
the consultants, an attempt has been made to evaluate Strength, Weakness, D
Opportunities and threats of the town which is shown below:
P
Strength Opportunities
Vadalur is known for Vallalar Improving Infrastructure status of the

“Ramalinga Swamigal” town
Creating environment friendly town by
III
Vadalur lies in close proximity to Neyveli
Lignite Corporation (NLC) developing green spaces, preserving
Vadalur has good connectivity by both water bodies and cleaning drainage
road and rail. channels.
Agriculture and religious based town Developing Vadalur as a religious
town
Final
Report
Weakness Threats
Dependency on bore wells for meeting Pollution from Neyveli mines
current water supply requirements Water logging due to absence of
46% households have no sanitation proper drainage channels
facilities Water bodies and water channels are
Only 20% roads are covered by Storm poorly maintained
Water drains Poor financials deters Municipality
SIDCO Industrial estate is not in running from taking Capital Intensive projects
condition
TNUIFSL 9-1
10 STAKEHOLDERS CONSULTATION T
N
10.1 OPERATIONAL WORKING GROUP U
The success of the Town Investment Plan depends on the extent of participation D
by the various agencies involved in urban governance and service delivery. As it
is very rightly said “Planning is an exercise ‘For’ the people, ‘Of’ the people and P
‘By’ the people.” perception and views of the representatives from the Town
Panchayat and various Para-Statal agencies are of paramount importance.
To bring all the agencies involved in urban governance and service delivery
under one platform for the consultation process, Operational Working Group III
(OWG) was formed. The first formal meeting was held in Vadalur Town
th
Panchayat on 7 July 2009 and subsequently Stakeholders meeting was held in
25th September 2009. The stakeholders meeting had a wide representation from
1. Administrative members of the Municipality

2. Elected members of the Municipality
Final
3. Representatives from Slums /SC /ST Report
4. Senior Citizens
5. Self Help Groups
6. Women Groups
7. NGO members
8. Officials from Para-Statal agencies
TNUIFSL 10-1
Figure 10-1 : First Formal Meeting on 7th July 2009
P
During the stakeholders meeting, the Consultants made a presentation on the
current status of the Vadalur Town in terms of Infrastructure, Financial and
Institutional aspects, findings from Rapid Urban Assessment and demand
assessment.
III
Further, projects already identified by Vadalur Town Panchayat and additional
projects proposed by the Consultants based on the Demand Supply Gap analysis
taking into consideration current and future needs and requirements were also
presented and discussed during the meeting. Sector wise Capital Investment
requirements and its phasing were also presented.
Final
During the presentation and subsequent interaction, many ideas and suggestions
Report
were made and the same has been encapsulated below and the same has been
considered and incorporated in this Report.
Table 10-A: Suggestions and projects
Physical
Sector Components Key Suggestions / Projects identified
Infrastructure
Water Supply Water Sources • Bore well, lakes and ponds
• Water supply scheme is under
ESR / GSR implementation under Minimum Need
Programme
TNUIFSL 10-2
• Need to provide distribution lines as the

Distribution Network
demand rises
• Not required T
Underground
• Purchasing Sullage lorry for waste water
Drainage N
collection purpose
Sewerage and
• Public toilets are required in Indira Nagar, U
Sanitation
Abatharanapuram, Periya Colony, RC
Public Toilets D
Saveriar Nagar and in Maruva Chinna
colony. P
Renovating existing
• Nil
drains
• Providing SWDs in Ward Nos
6,8,12,17,14,15,16 and 11
III
• Lining Kannikovil odai for a length of 3
Kms
Storm Water
• Creating disposal drain for a length of 2.5
Drainage
Creating New Drain Km from Ayyaneri
• Lining Vadakku Theru Odai for a length
of 1.5 Km (3 meter width X 3 meter Final
Report
depth) with 2 minor bridges.
• 2 minor bridges across Vadakku Theru
Odai
• Converting 600 meter 2 lane
Kutcha road Podhiyankuttai earthen road in to BT road
Roads
upgradation • Converting 700 meter single lane
Arpaathiyappa earthen road in to BT road
Pucca road
• Converting 5 Km BT road into CC road
improvement
Building New Roads / • Creating Bridge connecting Ragavendra

Links city and Serakuppam
TNUIFSL 10-3
• Creating subways in Seerakuppam and

Kattukottai railway crossing.
• Creating Railway Over bridge in VKT T
road (NH – Implementing agency)
N
Bye pass / Highway • Creating Pedestrain foot path on both the
projects sides for 1 Km in Neyveli road. U
Traffic Management /
• Not required D
Traffic and Junction Improvement
Transportation Bus stand / railway P
• Not required
station Imp
Door to Door
• Procuring segregation bins for each
collection and
assessments
Segregation
III
Man power / • Procuring protective gear for conservancy
Privatisation workers (once in two years)
Vehicle requirements • Not required
Solid Waste
Dumping site /
Management • Compost yard is already existing
Compost yard
User Charges • Not possible Final
Report
• Public awareness for Waste segregation
and D-D collection and Creating awareness
Public Awareness
about protective gear among conservancy
workers
Energy Saving
Street Lighting • Needs to be adopted
Initiatives
TNUIFSL 10-4
Social
Sector Components Key Suggestions
Infrastructure
• Creating green spaces in 43 approved T
Approved layout for
Parks and layouts (Developing 14 layouts into parks
parks and N
Playgrounds and creating compound walls in remaining
playgrounds
layouts to prevent encroachments) U
Daily / Weekly Infrastructure • Creating weekly market in Ragavendra
Market Improvement city
D
Creating Community P
• Not required
hall
Community hall
Upgrading existing
• Not required
halls
III
Slaughter house
Slaughter House • Not required
improvement scheme
Creating new blocks /
Municipal
Improving existing • Existing office is sufficient
building
blocks
Final
Burial ground • Burial ground improvement scheme in all Report
Burial grounds / Improvement remaining 7 burial grounds
Gasifier • Gassifier crematorium in one of the 8
Gassifier provision
burial grounds.
• Improving the condition of water bodies
(Aiyan Eri, Thamarai Eri, Nathanan
Kuppam Eri, Sundukuli Eri, Karapakkam
Water bodies
Eri, Vengalathu eri, Thathan kuttai, shetty
improvement
kulam in ward No.04, Maruvarur kulam in
ward No. 02 and Alamparappu lake in ward
No. 01)
TNUIFSL 10-5
T
Sector Sector Components Key Suggestions
Slums and • Infrastructure scheme for un-notified slum N
Urban Poverty areas is required.
U
D
Urban Finance /
Institutional Sector Components Key Suggestions P
Framework
• The Town Panchayat has been outsourcing
few of its services such as door to door
collection by SHG in ward no.2, Changing
of Busted Pipes by private contractor in all III
Areas for the 18 wards, fitting of lamps by the private
privatization contractor in the entire 18 ward.
• The TP can work out the possibility of
extending the services of the SHG/Private
Contractor to other wards in Solid Waste Final
Privatization /
Management Report
Cost Recovery
• The Town Panchayat is collecting a
minimum amount of Rs.10 for around 290
households in the prime locality for Solid
Waste Management. The same can be
User charges extended to other localities in the due course
of time in order to enhance the own sources
of funds of the TP which would facilitate
them to undertake new projects for the
development of the town.
TNUIFSL 10-6
10.2 PRIORITY BASED ON OWG OPINION

SURVEY T
Projects identified both by the Town Panchayat and by the consultants cannot be N
taken at one step for implementation due to constraints like finance, institutional
capabilities etc. Thus, phasing of the projects based on stake holder’s priority U
could be a viable option for implementing projects. During stakeholders
D
meeting, they have been asked to prioritize the sectors pertaining to Physical
infrastructure, Social Infrastructure and Environment through a survey called P
City Opinion survey and is presented in a scale of 0-1001 scores.
10.2.1 PHYSICAL INFRASTRUCTURE PRIORITY
Based on the opinion survey conducted during stakeholders meeting,

III
Stakeholders have given priority to the sectors related to Physical infrastructure
on the following order:
1. Road Network
2. Drinking Water Supply
3. Storm Water Drainage
Final
4. Street lighting
Report
5. Solid Waste Disposal
6. Under Ground Drainage
7. Parking facilities
1
Sector is highly prioritized by the Stakeholders if it gets 100 score and least prioritized if it
gets 0 score.
TNUIFSL 10-7
Figure 10-2 Sector prioritization by the Stakeholders (Physical Infrastructure)
T
17.44
Parking Facilities N
74.42
Street Lighting
45.35 U
SW Disposal
83.72
SW Drainage 32.56 D
UG Drainage
Drinking Water
83.72 P
100.00
Road
0 20 40 60 80 100
III
10.2.2 SOCIAL INFRASTRUCTURE PRIORITY
Based on opinion survey conducted during stakeholders meeting, they have

given priority to the sectors related to Social infrastructure on the following
order:
1. Parks, Playfields Final

2. Health facilities (Maternity Center) Report
3. Community Hall
4. Burial ground / Gasifier crematorium
5. Schools / Colleges
6. Public Transport
7. Slaughter House
8. Market
TNUIFSL 10-8
Figure 10-3 Sector prioritization by the Stakeholders (Social Infrastructure)
T
21.11
Daily M arket N
26.67
Slaughter Ho use
75.56 U
B urial Gro und/Cremato rium
Co mmunity Hall 82.22

Health facilities 91.11 D
Scho o ls & Co lleges
73.33
P ublic Transpo rt
50.00 100.00 P
P ark and P layfield
0.00 20.00 40.00 60.00 80.00 100.00
III
10.2.3 ENVIRONMENTAL ISSUES
Based on opinion survey conducted during stakeholders meeting, they have

given priority to the Environmental issues on the following order:
1. Air Pollution
2. River/Lake
Final
3. Water Pollution Report
4. Land Pollution
5. Noise Pollution
6. Floods
7. Open space inadequacy in the form of parks / Playgrounds
8. Drought
TNUIFSL 10-9
Figure 10-4 Sector prioritization by the Stakeholders (Environmental Issues)
T
17.44
Drought
52.33 N
Floods
33.72
Open space
U
Noise Pollution
58.14
65.12
Land Pollution 90.70 D
Water Pollution 100.00
Air Pollution
P
River/Lake
95.35
0.00 20.00 40.00 60.00 80.00 100.00
III
Figure 10-5 Consultation in VadalurTown Panchayat
Final
Report
TNUIFSL 10-10
11 ASSET MANAGEMENT PLAN T

Asset Management Plan involves maintenance management for preventive and N
predictive maintenance, equipment recording and tracking, replacement parts
inventory, and maintenance labor scheduling. The goal of asset management is U
to optimize asset use and manage all maintenance efforts involved in making
D
assets as reliable, accurate, and efficient as possible. Asset management Plan is
the plan developed for one or more physical assets within the Town Panchayat P
that combines multi disciplinary management techniques including technical and
financial over the life cycle of the asset to a specified level of service in a most
cost effective manner.
III
The key aspects of asset management plan therefore involve asset inventory,
information of assets owned by the Town Panchayat and appropriate strategy to
manage the assets and increase the productivity of the same. The asset
management plan is therefore critical for maintaining, upgrading and operating
physical assets in a cost effective manner.
Final
Report
Vadalur Town Panchayat has several assets that require regular maintenance for
sustenance of reasonable service delivery levels. Given the high impact of the
O&M expenses on the finances of the Town Panchayat, it is prudent to
undertake a proper review of the assets under its control. This would aid in
identifying the revenue generating assets as well as the ones that are causing a
drain on municipal revenues. A comprehensive asset management plan aids in
achieving the same.
TNUIFSL 11-1
11.1 LIST OF ASSETS:

T
The assets of Vadalur Town Panchayat can be classified as assets relating to
N
basic physical infrastructure such as water supply, roads, storm water drains,
street lights, light and heavy vehicles etc and those relating to social U
infrastructure which include community halls, maternity centers, burial grounds
D
etc. Among basic physical infrastructure only water supply services can be
considered revenue generating as the Town Panchayat is able to collect taxes, P
connection charges, initial deposit charges and metering/tap rate charges and
hence expenses are met mainly through dedicated water supply fund set up for
the purpose. With regard to social infrastructure, vadalur has revenue
generating assets like shopping complex, markets, shops, bus stand, pay & use
currently with the panchayat and others such as burial grounds, community hall,
III
slaughter house, parks, public toilets, maternity centre etc; are not revenue
generating or revenue generation is extremely nominal and may not be self
sustaining. The panchayat earns about Rs.35.75 Lakhs (2008-09) annually from
the remunerative assets like the bus stand, shopping complex, slaughter house,
weekly market, pay & use toilets etc Some of the social infrastructure is required Final
to be provided by the Town Panchayat as the functions remain obligatory Report
functions of the Town Panchayat and also help to fund the non remunerative
activities of the Town Panchayat. These are also required to maintain the
cleanliness and sanitation of the city.
TNUIFSL 11-2
The various physical and social infrastructure of the Town Panchayat are listed
below:
Table 11-A: Details of various social & physical infrastructure assets T
Area / U
Particulars Unit Description Details / Location
D
11350
Bus Stand 1 Sq.mts.
P
14.8x7.1Mts.
Plus
12.4x6.7
Office Buildings 1 Addnl Mts. Near Bus stand
1 (144
Commercial Complexes Shops) At Bus stand III
Markets-Within Local
Body Limits-Weekly 1 3 Acres At Ward no.6
Public Toilet & Pay and

Use Latrines 1 Inside the Bus stand
Back side of TP Office (There

is a Proposal to construct a Final
Slaughterhouse 1 1000 Sq.ft. Community Hall) Report
TV Rooms 12 Nos. 35 x 3 each

1) Near Vadalur Town
Parks & Play Grounds /
Panchayat office
Gardens 2
2) Near Government hospital
29 over head tanks with a
combined capacity of 29.5 lakh
Overhead Tank 29 Nos. litre capacity
8 burial grounds out of which

3 is in Abbataranapuram in
ward Nos. 3 and 04, 1 in
seerakuppam in ward No.5, 2
in Parvathipuram in ward Nos.
Burial Ground 8 11 and 18 and 1 in ward no. 17
TNUIFSL 11-3
1 Tipper, 1
Tractor &
Mini Tempo
(TATA A/c), T
Number of Motor Vehicles 1 Tricycle
for different departments and 8 Push N
(Including SWM) 3 carts
Source: Vadalur Town Panchayat U
P
11.2 OPERATIONS AND MAINTENANCE
The revenue generation and the operations and maintenance activities currently being
followed and suggestions for comprehensive Asset Management including ways and
means to meet the expenses involved & make it a self sustaining for various assets
III
are listed below:-
11.2.1 O&M OF SOCIAL INFRASTRUCTURE ASSETS

Table 11-B: O&M and Revenue generation
Average
Current O&M Final
Asset Annual Recommendations
practice Report
income
-Periodic inspection and
maintenance is required
- About 2-3 % of the income
Rs.20.00 Adhoc basis. earned from this asset can be
Commercial Complexes
Lakhs
invested annually on
maintaining and upgrading the
facilities.
-Periodic inspection and

Office Buildings Nil Adhoc basis
maintenance is required
Bus Stand Rs.6.00 Adhoc Basis - Periodic annual maintenance
TNUIFSL 11-4
Lakhs is required
-Additional Income
generating activities such as T
paid parking lots can be
N
explored.
Periodic annual maintenance U

Rs.0.20 can sustain the quality of the
Slaughterhouse Ad hoc basis
Lakhs D
asset.
Some of the routine P

No pay and use maintenance work can be
except one inside the handed over to SHGs with
Rs.3.70
Pay and Use Latrines
Lakhs bus stand only major maintenance/new
work to be taken up by the
panchayat III
Periodic annual maintenance
can sustain the quality of the
asset. The TP proposes for a
Burial Ground NIL Ad hoc basis Burial ground improvement
scheme in 7 burial grounds
and Gassifier crematorium in Final
one burial ground. Report
Can be maintained jointly with

private sector or maintained
Parks & Play Grounds /
Nil
Gardens exclusively by the private
sector on sponsorship basis
Source: Analysis based on Information provided by Vadalur Town Panchayat
TNUIFSL 11-5
11.2.2 O&M PHYSICAL INFRASTRUCTURE

Operation and Maintenance of the assets related to Physical and socio-economic
T
infrastructure is divided under two heads;
N
• To maintain the existing assets for the next five years and
• To maintain the assets proposed to be created under various capital works U
proposed.
D
Since the O & M of the existing assets related to Socio- Economic Infrastructure has
already been assessed in the above sections of this chapter, the O & M of the existing P
physical Infrastructure assets and the proposed O & M for the capital works identified is
broadly discussed in this section. Past growth trends in O&M expenses relating to
existing physical infrastructure and O&M rates as a percentage of capital cost assumed
for the proposed capital works are tabulated below:
III
Table 11-C Past Growth trends in O & M expenses relating to key physical
infrastructure
Description Current level

Existing Assets CAGR of growth rate from 2003-04 to 2008-09 (%)
Water Supply
Operating Expenses 6.32% Final
Power Charges for Head Water Works Fluctuating Trend Report

Maintenance expense for Water Supply Works 1.92%
Solid Waste Management
Heavy vehicle expenditure 16.49%
Street lighting
Maintenance Expense for Street Lights Fluctuating Trend
Power charges for street lighting 16.20%
TNUIFSL 11-6
Table 11-D O&M rates as a % of proposed capital works
Description Current level Assumption

FOR CAPITAL WORKS T
Water Supply NA 6% of the project cost
Sewerage & Sanitation NA 4% of the project cost
N
Roads and Traffic
NA 3% of the project cost U
Management
Storm Water Drainage NA 2% of the project cost
Solid Waste Management NA 10% of the project cost
D
5% of the project cost
Street Lighting NA considering Energy saving P
mechanism
Slum up gradation NA 1% of the project cost
Others NA 2% of the project cost
III
Final
Report
TNUIFSL 11-7
T
11.3 AMP - RECOMMENDATIONS
N
U
The following are some of the suggestions with regard to formulation and
implementation of a comprehensive asset management plan:- D
11.3.1 ASSET REGISTER P
A comprehensive Asset register needs to be maintained containing details of the list of

assets, year and cost of acquisition, particulars such as the location, size of the
area/building, ownership records and all supporting documents required for the same. III
These details are required for assessing the condition of the asset. The reforms
programme under TNUDP has initiated the process of computerizing and digitalizing
the asset inventory for all municipalities in Tamil Nadu. Computerization of asset
register is required with focus on proper designing, testing, installing a database
management system for municipal assets. Data thus compiled would need to be Final
classified on the basis of sector specific infrastructure facilities, land and properties etc Report
11.3.2 ASSET VALUE AND LIFE CYCLE

MANAGEMENT
The Town Panchayat needs to determine the value of various assets in regular intervals.
As all assets have a limited life expectancy, concerted efforts need to be undertaken by
the Town Panchayat on regular basis before investing further in a new asset or up
gradation of the existing assets. In case of an asset (service) that is handed over to a
private contractor for O&M, periodic review and inspection needs to be made to prevent
misuse and damage to the assets.
TNUIFSL 11-8
11.3.3 SUSTAINABILITY
T
Sustainable management of assets is an important element of asset management plan.
N
Sustainable development has been defined as “meeting the needs of present generation
without compromising the ability of future generations to meet their own needs”. A U
long term financial plan to provide necessary resources to operate, rehabilitate and
ultimately replace the asset at the optimal time to achieve lowest life cycle cost is D
required. Preventive and operational maintenance at regular intervals can prevent higher P
cost associated with the full replacement of the asset. Such a plan would ensure that the
current users pay a fair share for the service they receive so the future users do not have
the burden to pay a higher cost for the same level of the service. Sustainable
management calls for a contribution from the users to meet partially or fully the O&M
cost associated with the utilization of assets. Hence user charges and fees is critical for a III
sustainable and a successful asset management programme
11.3.4 INTEGRATION OF TECHNICAL AND

FINANCIAL PLANS
An integrated plan combining technical aspects (to minimize life cycle cost & reduce Final
the risk level) and financial aspects (Financial plan) are required to quantify the level of Report
service and the cost associated with the same. The technical and financial plans need to
be flexible enough to suit the changing requirements of the public.
11.3.5 CONDITION ASSESSMENT SURVEY (CAS)
The Town Panchayat could look to undertake CAS for various assets owned by the
ULB, which could bring to light the deficiencies in a system or a component, the extent
of defects, estimated cost of repairs and the prioritizing the work to be undertaken. This
systematic review could enhance the life of the asset and minimize huge capital outlay
on account of delay in taking remedial actions.
TNUIFSL 11-9
11.3.6 RISK ASSESSMENT

Asset management needs to take into account various risk factors such as financials,
T
environmental, regulatory, legal, public health and safety.
N
11.3.7 MONITORING AND EVALUATION
U
To optimize an asset management plan, performance of the assets and rehabilitation
strategies should be monitored regularly, and adjustments made at the appropriate stage D
in the asset life cycle to achieve an acceptable balance between cost and the
P
performance (Level of service). It is also imperative to monitor and take damage control
measures when the Town Panchayat takes up any development works to prevent
damage to the other assets of the Town Panchayat. Prioritizing the works to be
undertaken can prevent unnecessary maintenance and capital cost.
III
11.3.8 BUDGETING
A regular budgeting exercise regarding the possible O&M cost for various assets needs
to be undertaken by the Town Panchayat. There should be a clear link to the financials
plans and the budgeting exercise undertaken by the Town Panchayat. An Asset Final
Management Plan should incorporate expenses relating to maintenance, renewal and Report
augmentation of the asset of the Town Panchayat.
11.3.9 TRAINING IN DATABASE MANAGEMENT

All the above requires proper training to the concerned staff. Training would involve
various issues such as methods of simplified updation of data, methods of monitoring
and follow up and training in issues relating to infrastructure facilities management,
land use, litigation, encroachment etc.
TNUIFSL 11-10
12 CONSOLIDATED ISSUES T
N
The issues identified during Rapid Urban Assessment and the issues indicated
by the review committee and stakeholders were consolidated sector wise and are
U
presented below: D
Table 12-A : Consolidated Issues
P
Sector Issues
• Dependent entirely on bore wells for water supply requirements
• Per capita water supply is low (63lpcd) against the standard
norm of 70 lpcd.
Water Supply • 17% of the existing roads are not covered by Water Supply III
distribution network
• Only 26% of the assessments are having household service
connections (HSCs)
• 46% households have no sanitation facilities
Sewerage and
• No sullage lorry available for septic tank cleaning since town
Sanitation
has no sewerage system and dependent mainly on septic tanks Final
• All drains are open Report

Storm water drainage
• Only 20 % of the existing roads have Pucca storm water drains.
Roads, Traffic and • 16% of the roads are kutcha earthen roads
Transportation • 16% of the roads are WBM roads
• Only 16% of the total assessments are covered by Door – Door
collection system
Solid Waste • Only 22% of the total assessments are involved in waste
management segregation
• State inadequacy (1 person per 3.5 Km against the standard
norm of 1 person per 0.5 Km)
• Spacing between lights is 46 Meters against the norm of 30
Street lighting
meters
TNUIFSL 12-1
Sector Issues
• Energy saving devices is not yet adopted like solar lamps, Timer
switches, electronic chokes, 36W tube lights instead of 40 W tube T
lights.
• Slums are un-notified due to which Town Panchayat is not able
N
Slums and
to avail funds for development purposes.
Urban Poverty U
• 15 un-notified slums accommodate 21% of the total population.
• 43 approved layouts are still undeveloped D
• Town has no land for Weekly market and the existing land is on
P
lease
Socio-Economic
• All the 8 Burial grounds have infrastructure inadequacies
Infrastructure
• Town has no commercial complexes for revenue generation.
• Town has 10 water bodies in the form of ponds and lakes which
are poorly maintained.
III
Final
Report
TNUIFSL 12-2
13 STRATEGIC PLANNING T
N
In order to address the issues identified during Rapid Urban Assessment stage
and during Review Committee meeting as well as during the OWG meeting, the
U
sectoral strategies and action plans have been proposed in this stage. Such action D
plans and strategies are converted into projects and are phased out based on the
priority suggested by the review committee members which is explained in the P
subsequent chapters.
13.1 ACTION PLAN FOR SECTORAL

DEVELOPMENT III
Action plans for improving the existing situation of various sectoral components
as well as for creating new infrastructure facilities have been formulated in
consultation with the Operational Working Group members and are listed
below:
Sector Action plan Final

Report
Land Use and • Preparing development plan for Vadalur Town Panchayat area for the next
Growth twenty five years
Management • Setting up local planning authority
Water
• Creating Distribution network for 13 Km by 2023-24
Supply
• Purchasing Sullage lorry for waste water collection purpose
Sewerage and
• Public toilets / community toilets in Indira Nagar, Abatharanapuram, Periya
Sanitation
Colony, RC Saveriar Nagar and in Maruva Chinna colony.
TNUIFSL 13-1
Sector Action plan

• "Provision of Pucca drains for 86 Kms by 2023-24 (assuming 1/3rd of the
storm water drain would be developed) T
• Priority projects are listed below
• Provision of SWDs in Ward Nos 6,8,12,17,14,15,16 and 11 N
Storm water
• Lining Kannikovil odai for a length of 3 Kms
drainage U
• Creating disposal drain for a length of 2.5 Km from Ayyaneri
• Lining Vadakku Theru Odai for a length of 1.5 Km (3 meter width X 3 meter D
depth) with 2 minor bridges."
• 2 minor bridges across Vadakku Theru Odai
P
• Public awareness for Waste segregation and D-D collection and Creating
awareness about protective gear among conservancy workers
Solid Waste
• Procuring segregation bins for each assessments
Management
• Procuring protective gear for conservancy workers (once in two years) III
• Contribution to scientific land fill site
• Converting existing 10.828 Km kutcha roads into BT road.

• Converting 600 meter 2 lane Podhiyankuttai earthen road in to BT road
• Converting 700 meter single lane Arpaathiyappa earthen road in to BT road
Final
• Converting 12.373 Km WBM roads into BT road. Report
Traffic and
• Creating Bridge connecting Ragavendra city and Serakuppam
Transportation
• Converting 5 Km BT road into CC road
• Creating Pedestrain foot path on both the sides for 1 Km in Neyveli road.
• Creating subways in Seerakuppam and Kattukottai railway crossing.
• Creating Railway Over bridge in VKT road (NH – Implementing agency)
• Replacing 40W Tube lights into 36 W

• Installing electronic chokes for all tube light fittings
Street Lighting
• Replacing 250 W 423 Nos SVL with (4 X 24) W T5 lamps
• Installing 300 street lights with poles in the next fifteen year period
Slums and Urban • Infrastructure scheme for un-notified slum areas
TNUIFSL 13-2
Sector Action plan

Poverty
T
• Improving the condition of water bodies (Aiyan Eri, Thamarai Eri,
Water bodies Nathanan Kuppam Eri, Sundukuli Eri, Karapakkam Eri, Vengalathu eri, N
Improvement Thathan kuttai, shetty kulam in ward No.04, Maruvarur kulam in ward No. 02
and Alamparappu lake in ward No. 01) U
• Creating green spaces in 43 approved layouts (Developing 14 layouts into
D
parks and creating compound walls in remaining layouts to prevent
Socio-Economic encroachments) P
Infrastructure • Gassifier crematorium in one of the 8 burial grounds
• Burial ground improvement scheme in all remaining 7 burial grounds
• Creating weekly market in Ragavendra city
III
Final
Report
TNUIFSL 13-3
T
14 CAPITAL INVESTMENT PLAN
N
The Capital Investment Plan (CIP) identifies the investment requirement of the town for the next fifteen year period U
without taking into consideration the financial feasibility of the projects, which would be covered in Financial Operating
Plan (FOP). Vadalur investment requirement for the next fifteen year period is Rs. 2384.01 lakhs. Consolidated Sector wise D
Investment requirement for Vadalur Town Panchayat is shown in Table 14-A.
P
Table 14-A : Consolidated Sector wise Capital Investment requirements
Total Investment Percentage 2009-10 to 2014-15 to 2019-20 to

Sector
in Lakhs share 2013-14 2018-19 2023-24
Water Supply 78.00 3.27 30.00 30.00 18.00
Sewerage and Sanitation 35.00 1.47 35.00 0.00 0.00
III
Storm Water Drainage 650.00 27.27 225.00 225.00 200.00
Solid Waste Management 248.78 10.44 79.77 83.73 85.28
Roads, Traffic and Transportation 659.16 27.65 599.16 60.00 0.00
Street Lighting 49.87 2.09 31.87 9.00 9.00
Slums and Urban Poverty 154.20 6.47 154.20 0.00 0.00
Socio-Economic Infrastructure 509.00 21.35 440.00 34.00 35.00
Total 2384.01 100.0 1595.00 441.73 347.28
Final
% Share 100.00 66.90 18.53 14.57
Report
TNUIFSL 14-1
Figure 14-1 Sector wise percentage share
T
Socio- Water Supply Sewerage
Economic 3% and N
Infrastructure Sanitation
21% 1% U
Slums and Storm Water
Urban Poverty Drainage D
6% 28%
Solid Waste
P
Roads, Traffic
Street and Management
Lighting Transportatio 10%
2% n
29%
III
14.1 PHYSICAL INFRASTRUCTURE
During Review Committee meetings, stakeholder consultation meetings and on the basis of demand supply gap analysis,
various works have been identified under different sectors like Water Supply, Sewerage, Solid Waste Management, Storm
Water Drains, Roads and Street Lighting which are classified as Physical Infrastructure sectors. The Budget Estimates for
Final
the identified projects have been carried out based on TWAD Board Standard Schedule of Rates, market rates and with
Report
some assumptions on the technical aspects and wherever the estimates are available with Town Panchayat the same has
been considered for those works.
TNUIFSL 14-2
14.1.1 WATER SUPPLY

T
Various works have been identified under Water Supply Sector on the basis of Stakeholder’s suggestion and on the basis
of Demand Supply Gap analysis. The works identified and phase wise investment for the various works are listed in N
Table 14-B.
U
Table 14-B : Project List and Budget Estimates for Water Supply Works
D
Capital Investment 2009-10 to 2014-15 to 2019-20 to
S.No Project Components
in Lakhs 2013-14 2018-19 2023-24 P
A Water Supply
Creating Distribution network for 13 Km by 2023-
1 78.00 30.00 30.00 18.00
24
Sub Total 78.00 30.00 30.00 18.00
It is suggested that Vadalur Town Panchayat has to undertake water audit, energy audit and leak deduction studies to
minimize Unaccounted Water Flow (UFW) and minimize the energy expenditure. The goals and service outcomes based III
on the proposed strategy for the horizon period is presented in Table 14-C.
Table 14-C : Goals and Service outcomes related to Water Supply sector
Up to 2014-15 to 2019-20 to
Goals 2009-10
2013-14 2018-19 2023-24
Final
Network coverage in % of available road network 83 90 96 100
Report
Per Capita Supply in LPCD 63 70 70 70
Service connections in % of assessments 26.1 45.7 65.4 85
TNUIFSL 14-3
To address system rehabilitation in the upcoming years, mapping and establishing a GIS system is pertinent to detail out
system location, characteristics, age and condition. This would enable identifying dilapidated sections of the network and T
those that require replacement.
N
14.1.2 SEWERAGE AND SANITATION
U
During stakeholder’s meeting, toilet block requirements have been identified. Further, Sullage lorry is proposed to be
D
purchased for cleaning Septic tanks since the town is dependent on septic tanks for safe disposal of sullage waste. Detailed
list of works, costing and phase wise investment plan is given in Table 14-D. P
Table 14-D : Project List and Budget Estimates for Sewerage and Sanitation Works

in Lakhs 2013-14 2018-19 2023-24
B Sewerage and Sanitation III
Purchasing Sullage lorry for waste water collection
2 10.00 10.00 0.00 0.00
purpose
Public toilets / community toilets in Indira Nagar,
3 Abatharanapuram, Periya Colony, RC Saveriar Nagar 25.00 25.00 0.00 0.00
and in Maruva Chinna colony.
Sub Total 35.00 35.00 0.00 0.00
14.1.3 STORM WATER DRAINAGE Final

Report
Under Storm Water Drainage sector, works like construction of new drains identified during Rapid Town Assessment and
during stakeholder’s consultation are considered. The works identified and phase wise investments are listed below.
TNUIFSL 14-4
Table 14-E : Project List and Budget Estimates for Storm Water Drainage works
Capital Investment 2009-10 to 2014-15 to 2019-20 to T

in Lakhs 2013-14 2018-19 2023-24
N
C Storm Water Drainage
Provision of Pucca drains for 86 Kms by 2023-24
(assuming 1/3rd of the storm water drain would be
U
developed)
Priority projects are listed below D
1. Provision of SWDs in Ward Nos 6,8,12,17,14,15,16 and 11
4 600.00 200.00 200.00 200.00
2. Lining Kannikovil odai for a length of 3 Kms P
3. Creating disposal drain for a length of 2.5 Km from Ayyaneri
4. Lining Vadakku Theru Odai for a length of 1.5 Km (3 meter

width X 3 meter depth) with 2 minor bridges.
5 2 minor bridges across Vadakku Theru Odai 50.00 25.00 25.00 0.00
Sub Total 650.00 225.00 225.00 200.00
The goals and service outcomes based on the proposed strategy for the horizon period is presented in Table 14-F. III
Table 14-F : Goals and Service outcomes related to Storm Water Drainage sector
Up to 2014-15 to 2019-20 to
Goals 2009-10
2013-14 2018-19 2023-24
Storm Water Drainage Coverage (% of road length) 20 33 46 58

Final
Report
TNUIFSL 14-5
14.1.4 SOLID WASTE MANAGEMENT

T
Protective gear for conservancy workers is proposed in such a way that workers would get protective gear once in two
years (50% workers is planned to be covered each year). In addition, Household segregation bins (2 Nos) are proposed for N
each assessment in Vadalur Town Panchayat with due consideration given to projected assessments also. Household
U
segregation bins are proposed to be replaced once in 5 years.
Awareness drive to improve Door-Door collection efficiency, waste segregation efficiency and awareness about the D
importance of protective gear among the conservancy workers is proposed to be conducted by the Town Panchayat. Town
P
Panchayat’s contribution for setting up regional land fill site in association with nearby Municipalities and Town
Panchayats is also considered. The works identified and phase wise investment for the various works are listed in Table
14-G
Table 14-G : Project List and Budget Estimates for Soild Waste Management works
III
in Lakhs 2013-14 2018-19 2023-24
D Solid Waste Management
Public awareness for Waste segregation and D-D
6 collection and Creating awareness about protective 5.00 5.00 0.00 0.00
gear among conservancy workers
7 Procuring segregation bins for each assessments 228.35 70.92 76.00 81.43
Final
Procuring protective gear for conservancy workers
8
(once in two years) 11.55 3.85 3.85 3.85 Report
9 Contribution to scientific land fill site 3.89 0.00 3.89 0.00
Sub Total 248.78 79.77 83.73 85.28
TNUIFSL 14-6
The goals and service outcomes based on the proposed strategy for the horizon period is presented in Table 14-H.
Table 14-H : Goals and Service outcomes related to Solid Waste Management works T
Up to 2014-15 to 2019-20 to N
Goals 2009-10
2013-14 2018-19 2023-24
U
Door to Door Collection (% of assessments covered) 16.2 100 100 100
Source Segregation (% of assessments covered) 22.5 100 100 100

D
Scientific disposal 0 0 √ √ P
Collection efficiency in % 84 100 100 100
14.1.5 ROADS, TRAFFIC AND TRANSPORTATION

III
Under this sector it is proposed to construct new roads, widening existing roads, converting earthen and WBM roads in to
BT roads. Further, subways, rotary intersections are proposed after having discussion with stakeholders in stakeholder’s
consultation meeting. Projects, for which the implementing agencies are Highways and other para-statal agencies, have
also been identified. For budget cost estimates unit rates per km length are considered. The works identified and phase
wise investment for the various works are listed in Table 14-I. Final
Report
TNUIFSL 14-7
Table 14-I : Project List and Budget Estimates for Roads, Traffic and Transportation works

in Lakhs 2013-14 2018-19 2023-24
N
E Roads, Traffic and Transportation
U
10 Converting existing 10.828 Km kutcha roads into BT road. 211.15 211.15 0.00 0.00
Converting 600 meter 2 lane Podhiyankuttai earthen road 15.60 15.60 0.00 0.00
D
11
in to BT road
Converting 700 meter single lane Arpaathiyappa earthen 9.10 9.10 0.00 0.00 P
12
road in to BT road
13 Converting 12.373 Km WBM roads into BT road. 98.98 98.98 0.00 0.00
Creating Bridge connecting Ragavendra city and 100.80 100.80 0.00 0.00
14
Serakuppam
15 Converting 5 Km BT road into CC road 100.00 100.00 0.00 0.00 III

Creating Pedestrain foot path on both the sides for 1 Km in 3.53 3.53 0.00 0.00
16
Neyveli road.
Creating subways in Seerakuppam and Kattukottai railway 120.00 60.00 60.00 0.00
17
crossing.
Creating Railway Over bridge in VKT road (NH – 0.00 0.00 0.00 0.00
18
Implementing agency)
Final
Sub Total 659.16 599.16 60.00 0.00
Report
The goals and service outcomes based on the proposed strategy for the horizon period is presented in Table 14-J.
TNUIFSL 14-8
Table 14-J : Goals and Service outcomes related to Roads, Traffic and Transportation sector
Goals 2009-10 Up to 2013-14 2014-15 to 2018-19 2019-20 to 2023-24 T

Per Capita road length in meters 2.6 2.5 2.3 2.1
N
Percentage of kutcha and WBM roads to
32 0 0 0
total road length
U
14.1.6 STREET LIGHTING
D
It is proposed to convert all conventional lights into energy saving lighting systems to save more energy and reduce carbon
emission. It is proposed to replace 40W tube lights into 36 W energy saving lamps when the life of existing 40 W lamp P
gets over. It is proposed to install electronic chokes in all fittings. It is further proposed to replace 250 W Sodium Vapor
with (4X24) W T5 lamps. The tender process for procurement of T5 lamps can have the provision for purchase of existing
Sodium Vapor lamps at a competitive rate. It is proposed to install nearly 300 additional light fittings in phases to cater
future demand (1/3 rd demand is considered).
III
Table 14-K : Project List and Budget Estimates for Street lighting works

in Lakhs 2013-14 2018-19 2023-24
F Street Lighting
19 Replacing 40W Tube lights into 36 W 0.87 0.87 0.00 0.00
Final
20 Installing electronic chokes for all tube light fittings 4.03 4.03 0.00 0.00
21 Replacing 250 W 423 Nos SVL with (4 X 24) W T5 lamps 17.98 17.98 0.00 0.00 Report
Installing 300 street lights with poles in the next fifteen
22 27.00 9.00 9.00 9.00
year period
Sub Total 49.87 31.87 9.00 9.00
TNUIFSL 14-9
It is suggested that Town Panchayat has to undertake energy audit studies before and after installing energy savers and
devices to find out the exact energy savings. T
The goals and service outcomes based on the proposed strategy for the horizon period is presented below.
N
U
Table 14-L : Goals and Service outcomes related to Street lighting sector
Up to 2014-15 to 2019-20 to D
Goals 2009-10
2013-14 2018-19 2023-24
P
Spacing between lamps in meters 46.6 44 42 40
Energy auditing Not done To be done to be done
Energy saving initiatives Done partially to be done completely
14.2 SLUMS AND URBAN POVERTY

III
In order to improve the living conditions in slum un-notified slum areas, CC, BT road, drainage and distribution lines are
considered under this scheme.
Length in Cost in
Infrastructure requirements
Kms lakhs
CC road 2.384 47.68 Final
BT road 2.955 38.415 Report
Drainage 2.925 58.5
Distribution network 1.6 9.6
Total cost in lakhs 154.195
TNUIFSL 14-10
Table 14-M : Project List and Budget Estimates for Slums and Urban Poverty

in Lakhs 2013-14 2018-19 2023-24
N
G Slums and Urban Poverty
23 Infrastructure scheme for un-notified slum areas 154.195 154.195 0.00 0.00
Sub Total 154.195 154.195 0.00 0.00
U
D
14.3 SOCIO-ECONOMIC INFRASTRUCTURE
P
Socio-Economic Infrastructure works are identified based on Demand Supply Gap analysis and during Stakeholder
consultation meetings. These works include improving the existing weekly and fish market, creating green spaces like
parks and playgrounds, creating gassifier crematorium and improving burial ground infrastructure, renovation of slaughter
house and improving the condition of water bodies. Project list and Budget estimates for Socio-Economic Infrastructure
works are listed out in Table 14-N. III
Table 14-N : Project List and Budget Estimates for Socio-Economic Infrastructure works

in Lakhs 2013-14 2018-19 2023-24
H Socio-Economic Infrastructure
Creating green spaces in 43 approved layouts Final
(Developing 14 layouts into parks and creating
24 Report
compound walls in remaining layouts to prevent 99.00 70.00 14.00 15.00
encroachments)
TNUIFSL 14-11
Improving the condition of water bodies (Aiyan Eri,

Thamarai Eri, Nathanan Kuppam Eri, Sundukuli Eri,
25 Karapakkam Eri, Vengalathu eri, Thathan kuttai, T
shetty kulam in ward No.04, Maruvarur kulam in
ward No. 02 and Alamparappu lake in ward No. 01) 200.00 200.00 0.00 0.00
26 Gassifier crematorium in one of the 8 burial grounds 90.00 90.00 0.00 0.00 N
Burial ground improvement scheme in all remaining
27
7 burial grounds 70.00 30.00 20.00 20.00
28 Creating weekly market in Ragavendra city 50.00 50.00 0.00 0.00
U
Sub Total 509.00 440.00 34.00 35.00
D
P
14.4 CONSOLIDATED CAPITAL INVESTMENT PLAN
14.4.1 FIRST PHASE INVESTMENT PLAN (2009-10 TO 2013 – 14)

III
First Phase investment plan for Vadalur is given in Table 14-O. The total Estimated Cost for all the Sectors is Rs. 1595.00
lakhs. The total estimated cost after considering escalation for I phase is Rs. 1900.65 lakhs which is shown in Table 14-P.
Table 14-O First Phase Capital Investment Plan for Vadalur Town Panchayat
Rs. in Lakhs
Final
Project Sector 2009-10 2010-11 2011-12 2012-13 2013-14 Investment in phase I
Report
Water Supply 0.00 7.50 7.50 7.50 7.50 30.00
Sewerage 0.00 10.00 0.00 0.00 0.00 10.00
Sanitation 0.00 10.00 5.00 5.00 5.00 25.00
TNUIFSL 14-12
Project Sector 2009-10 2010-11 2011-12 2012-13 2013-14 Investment in phase I

Storm Water Drainage 0.00 50.00 75.00 50.00 50.00 225.00 T
Solid Waste Management without gear and bins 0.00 0.00 0.00 0.00 0.00 0.00
Solid Waste Management 15.95 15.95 15.95 15.95 15.95 79.77
Roads, Traffic and Transportation 0.00 211.15 123.68 100.80 163.53 599.16 N
Street Lighting 6.37 6.37 6.37 6.37 6.37 31.87
Slums and Urban Poverty 0.00 51.40 51.40 51.40 154.20
Socio-Economic Infrastructure 0.00 70.00 90.00 80.00 200.00 440.00
U
Total 22.33 380.97 374.91 317.03 499.76 1595.00
D
Table 14-P First Phase Capital Investment Plan for Vadalur Town Panchayat (after considering escalation cost) P
Rs. in Lakhs
Investment in
Project Sector 2009-10 2010-11 2011-12 2012-13 2013-14
Phase I
Water Supply 0.00 8.27 8.68 9.12 9.57 35.64 III
Sewerage 0.00 11.03 0.00 0.00 0.00 11.03
Sanitation 0.00 11.03 5.79 6.08 6.38 29.27
Storm Water Drainage 0.00 55.13 86.82 60.78 63.81 266.54
Solid Waste Management Bins and Gears 16.75 17.59 18.47 19.39 20.36 92.56
Roads, Traffic and Transportation 0.00 232.79 143.18 122.52 208.71 707.20
Street Lighting 6.69 7.03 7.38 7.75 8.14 36.98
Slums and Urban Poverty 0.00 0.00 59.50 62.47 65.60 187.57 Final
Total 23.44 420.02 434.01 385.35 637.83 1900.65 Report
TNUIFSL 14-13
14.4.2 SECOND PHASE INVESTMENT PLAN (2014-15 TO 2018 – 19)

T
Second Phase investment plan for Vadalur is given in Table 14-Q. The total Estimated Cost for all the Sectors is Rs. 441.73 N
lakhs. The total estimated cost after considering escalation for II phase is Rs. 638.56 lakhs which is shown below. U
D
Table 14-Q Second Phase Capital Investment Plan for Vadalur Town Panchayat
Rs. in Lakhs P
Project Sector 2014-15 2015-16 2016-17 2017-18 2018-19 Investment in phase II

Water Supply 6.00 6.00 6.00 6.00 6.00 30.00
Sewerage 0.00 0.00 0.00 0.00 0.00 0.00
Sanitation 0.00 0.00 0.00 0.00 0.00 0.00
Storm Water Drainage 40.00 65.00 40.00 40.00 40.00 225.00 III
Street Lighting 1.80 1.80 1.80 1.80 1.80 9.00
Slums and Urban Poverty 0.00 0.00 0.00 0.00 0.00 0.00
Total 161.66 88.77 63.77 63.77 63.77 441.73
Final
Report
TNUIFSL 14-14
T
Table 14-R Second Phase Capital Investment Plan for Vadalur Town Panchayat (after considering escalation cost) N
Rs. in Lakhs
U
Investment in
Project Sector 2014-15 2015-16 2016-17 2017-18 2018-19 D
Phase II
Water Supply 8.04 8.44 8.86 9.31 9.77 44.43 P
Sewerage 0.00 0.00 0.00 0.00 0.00 0.00
Sanitation 0.00 0.00 0.00 0.00 0.00 0.00
Street Lighting 2.41 2.53 2.66 2.79 2.93 13.33
Slums and Urban Poverty 0.00 0.00 0.00 0.00 0.00 0.00 III
Total 216.64 124.91 94.22 98.93 103.87 638.56
Final
Report
TNUIFSL 14-15
T
14.4.3 THIRD PHASE INVESTMENT PLAN (2019-20 TO 2023-24)
N
Third phase investment plan for Vadalur is given in Table 14-S. The total Estimated Cost for all the Sectors is Rs. 347.28
U
lakhs. The total estimated cost after considering escalation for III phase is Rs. 647.64 lakhs which is shown below. D
P
Table 14-S Third Phase Capital Investment Plan for Vadalur Town Panchayat
Rs. in Lakhs
Investment in
Project Sector 2019-20 2020-21 2021-22 2022-23 2023-24
phase III
III
Water Supply 9.00 9.00 0.00 0.00 0.00 18.00
Sewerage 0.00 0.00 0.00 0.00 0.00 0.00
Sanitation 0.00 0.00 0.00 0.00 0.00 0.00
Street Lighting 1.80 1.80 1.80 1.80 1.80 9.00
Slums and Urban Poverty 0.00 0.00 0.00 0.00 0.00 0.00 Final
Socio-Economic Infrastructure 35.00 0.00 0.00 0.00 0.00 35.00 Report
Total 102.86 67.86 58.86 58.86 58.86 347.28
TNUIFSL 14-16
N
Table 14-T Third Phase Capital Investment Plan for Vadalur Town Panchayat (after considering escalation cost)
U
Rs. in Lakhs
D
Investment in
Project Sector 2019-20 2020-21 2021-22 2022-23 2023-24
Phase III P
Water Supply 15.39 16.16 0.00 0.00 0.00 31.56
Sewerage 0.00 0.00 0.00 0.00 0.00 0.00
Sanitation 0.00 0.00 0.00 0.00 0.00 0.00
Roads, Traffic and Transportation 0.00 0.00 0.00 0.00 0.00 0.00 III
Street Lighting 3.08 3.23 3.39 3.56 3.74 17.01
Slums and Urban Poverty 0.00 0.00 0.00 0.00 0.00 0.00
Total 175.92 121.86 110.98 116.53 122.36 647.64
Final
Report
TNUIFSL 14-17
T
15 REFORMS AND RESOURCE N
U
MOBILIZATION
D
P
15.1 OVERVIEW
Urban reforms are the main focus of good governance and service delivery to the
inhabitants of the urban area. Several initiatives and reforms have been taken up at the
III
national level and state level. These reforms need to be replicated and implemented by
the ULBs completely in a time bound manner. The State Government and the Urban
Local Bodies have executed a Memorandum of Agreement with the Government of
India, committing to implement the reform programme.
Under the Urban Local Bodies level, reforms committed viz., E-Governance, shift to
Accrual based double entry accounting, property tax (85% coverage), property tax
collection efficiency (90%). 100% cost recovery for water supply and solid waste
services have been committed to be achieved in the year 2012. Internal earmarking of Final
Report
funds for services to Urban Poor has been done and provision of Basic services to urban
poor has been committed to be achieved in the year 2012.
Encouragement of Public Private Partnership to be carried on through outsourcing in

solid waste management, street light maintenance, pumping station maintenance, STP
maintenance and hiring of vehicles. Many of the suggested reforms have been
implemented to some extent though at the ULB level further refinement and qualitative
implementation needs to be carried out. Besides these mandatory reforms the ULBs have
initiated Institutional Strengthening, Capacity building for administrative and elected
representatives under various reform programs of TNUDP and State Government.
TNUIFSL 15-1
15.2 REFORM MEASURES FOR VADALUR

T
TOWN PANCHAYAT
N
The reform measures to be undertaken by the Town Panchayat can be broadly classified U
into 3 broad heads: D
Financial and Accounting Reforms
P
Institutional reforms
Reforms in physical infrastructure
15.2.1 FINANCIAL & ACCOUNTING REFORMS

III
15.2.1.1 FINANCIAL REFORMS
As a part of financial reforms, tax mobilization reforms in tax and non tax collection
needs to be taken up for improving the financial position of the Town Panchayat. The
reform process of tax collection should be comprehensive and should focus on structural
and systematic changes so that the increase in efficiency is sustained. This is vital for
achieving self-sufficiency and improving its financial health to make it possible for the
TP to undertake various projects for the welfare of the people.
Final
Report
The Executive officer and the bill collectors are responsible for collection of various
taxes and charges from its citizens including raising the demand for key revenue items
like property tax, profession tax, water charges etc., follow up on outstanding payment
and prepare the Demand Collection Balance (DCB) statement. There are four number of
sanctioned post for Bill Collector in the revenue collection department and out of four
three posts are filled in and exist one vacant.
TNUIFSL 15-2
One of the most important yard stick for measuring the robustness of tax collection is
collection efficiency. The Collection Efficiency of important revenue sources of Vadalur
T
Town Panchayat for the last 6 years ending 2008-09 is given as under:
N
Table 15-A: Collection Efficiency of key revenue sources
U
Particulars 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Property Taxes D
Arrears 0% 0% 0% 0% 0% 0%
Current 100% 100% 100% 100% 100% 100% P
Total 25% 23% 24% 24% 26% 34%
Professional Taxes
Arrears 12%
Current 100% 100% 100% 100% 100% 100%
Total 68% 100% 100% 100% 100% 100%
Water Charges III
Arrears
Current 100% 100% 100% 100% 100% 100%
Total 100% 100% 100% 100% 100% 100%
Library Cess
Arrears 0% 0% 0% 0% 0% 0%
Current 100% 100% 100% 100% 100% 100%
Total 29% 26% 28% 28% 30% 38%
Source: DCB of Vadalur Town Panchayat
Table 15-B: Efficiency parameters of key taxes and water charges

Particulars Current Arrears CAGR in no of CAGR in Final
Collection Collection assessments (%) the terms of Report
efficiency efficiency Last 5 years value (%)
Property taxes 100% NA 1.27% 9.12%
(2008-09)
Profession Taxes 100 % NA -6.95% 15.61%
(2008-09)
Water Charges 100% NA 3.11% 4.31%
(2007-08)
TNUIFSL 15-3
15.2.1.1.1 Property taxes: T

The most important category in the own sources of income is the property tax. This tax is N
imposed on land and buildings depending upon their class of areas & nature of use. U
About 85% of the tax revenue comes through property taxes. The CAGR of property tax
revenue has been around 9.12% over the last few years. (2003-04 till 2008-09). The
D
Town Panchayat enjoys very good collection efficiency only in the current demands. P
15.2.1.1.2 Profession Tax:

Profession tax has contributed about 15% of the total Taxes in the last few years. The
CAGR has been close to 15.61% for the past few years. The Town Panchayat enjoys a III
very good current and arrear collection efficiency. Robust growth in Taxes is required to
fund the projects. Proper implementation of reforms is a pre-requisite for healthy revenue
generation. Healthy growth in number of assessments, updated tax demand, periodic
revisions and high collection efficiency is important for strong growth in property tax
collection
Hence the following reforms have been suggested to bring about improvement in
property tax collection
Table 15-C: Reforms in property Taxes Final

Report
Suggested Property taxes Reforms
• Mandatory Implementation of Revision of Property Tax once in every five years
is required
• Digitization of the property maps through GIS to identify un-assessed and under
assessed properties is required. GIS based mapping system is advisable for each
property identified on GIS (Whether it is residential, commercial or
industrial).The above database can be crossed checked with the data from various
governmental authorities/sources such as Income Tax, Profession Tax, and
Electricity Bills etc. Such database also would help the Town Panchayat to verify
the utility of the property against the purpose for which permission was taken.
• Computerization of records of encroached properties, action taken, list of
TNUIFSL 15-4

encroachers through MIS would enable linking the same with GIS. T
• Making the payment of property tax more convenient for the assesses through the
N
use of various alternative modes can be explored through a decentralized
approach such as :
U
1. Through banks D
2. Through Post Offices, Bus terminus, Kiosks etc.
P
3. Through online payment through using internet.
4. Through ECS/ EFT
• Using special schemes and incentives to encourage people to make the payment
of property tax before the lapse of the due date can be considered. Rebates can be
III
offered for advance payment of property taxes.
• The Town Panchayat can do more initiatives to increase the number of self
assessed tax payers by creating well awareness among the people themselves
about the social responsibility of paying tax in time
• Collection of arrears through innovative means such as community participation
and fast track litigation methods need to be attempted. Law enforcement powers
should be given to the Town Panchayat to compel payment of taxes and other
charges levied by them.
• Improve enforcement against defaulters by modifying byelaws with adequate
Final
recourse to Town Panchayat within the current framework for enforcing Report
disconnections on defaulters.
• PSP involvement in computerization, billing, collections and survey of properties
can be explored.
• Rewarding collection efforts of the employees to encourage more aggressive
collection.
• List of consistent major defaulters can be published in the notice board of the
Town Panchayat office. This can be resorted in the case of extreme default.
• Suitable legislation at state level to ensure that in the case of disputed property
tax the assessee should first pay the tax under protest and then can take the
necessary legal recourse as done in customs/excise duties can be considered.
• Currently the payment of property taxes is possible only in the Town Panchayat
office. The ULB can look to the possibility of introducing additional collection
TNUIFSL 15-5

centers to enable the citizens to pay the taxes easily T
• Late payment of property tax after the grace period can be penalized with
N
nominal charges as being done in the case of insurance payments etc
U
15.2.1.2 ACCOUNTING REFORMS D
The administrative section is responsible for maintenance of all income and expenditure
P
statements, payment, preparation and implementation of budget. The system of accounting has
undergone a transformation from cash based accounting system to accrual accounting system
in line with the State government’s reforms initiative. Presently they do not have fully
computerized accounts department. As on date Vadalur Town Panchayat has completed
III
finalizing its accounts up to FY 2008-09 (Un audited).
The following reform measures are suggested:
Table 15-D: Accounting Reforms
Suggested Accounting Reforms

Zero based budgeting would need to be carried out for continual monitoring of budgets and
cash flow management.
As a part of a larger accounting reform process at the State level, it is suggested that the ULB
can include disclosures in its Annual Accounts and other published documents details on cost Final
Report
recovery of essential services through direct “user charges”, indirect “taxes” and
Environmental status report. This information can be made available to the public through
various channels (Such as hosted the details on the website, distribution of pamphlets,
Involving SHGs/NGOs/Woman Groups for spreading awareness, Public announcements etc)
in simple effective language to facilitate substantial/full recovery of O&M costs of the
various essential services such as Water Supply, Solid Waste Management, etc. The
awareness creation at various levels will increase the “willingness to pay” actions of the
citizens of the area.
The audited annual accounts can contain ULB Discussion and Analysis Report (UDAR)
providing a holistic view on the financial health, quality of service level rendered, initiatives
taken/proposed by the ULB to improve the city, areas of concern, targets and action plan to
achieve the same etc. This report along with the Urban Performance indicators can provide a
TNUIFSL 15-6
Suggested Accounting Reforms

qualitative edge to the accounting and financial reporting system that can go a long way T
towards achieving high levels transparency, accountability and easy and smoother facilitation
N
of the reform process required. Thus the support from the stake holders of the city would
become easier if the awareness is created with these qualitative reports being prepared and
U
shared with the key stake holders of the city. D
P
15.2.2 INSTITUTIONAL REFORMS
The Institutional reforms suggested for Vadalur Town Panchayat can be broadly divided into
the following heads:
Training and Capacity Building for administrative staff and elected officials III
Private Sector Participation
User charges
E-Governance
15.2.2.1 TRAINING AND CAPACITY BUILDING FOR

ADMINISTRATIVE STAFF AND ELECTED OFFICIALS
• Training
The various training undergone by the staff of Vadalur Town Panchayat has been elaborated
as under:
Final
1) Bhavani Sagar Training has been provided to the Junior Assistant Report
2) Training to the Executive Officer
a) Accounts training – Annual Accrual Accounting System in ULB conducted by
Comptroller and Auditor General (C&AG) for a period of 2days in Feb 2009 in
Thanjavur
• Public Grievance Redressal Mechanism
Public Grievance registers maintained for all key sectors such as Public Health, Water
Supply, and Street Lights. The Public also approach their respective ward councilors with
their complaints on service delivery system.
TNUIFSL 15-7
It is recommended that the periodicity of the training can be enhanced coupled with more
qualitative in-depth focus on the type of training offered. This would result in increased
T
awareness among the administrative staff on various issues there by enhancing their
productivity and creating awareness about their responsibility towards the public. For N
both elected and administrative members educational and awareness tours can be U
organized to understand the best practices in various services of other ULBs.
D
As the ULB is already maintaining a public grievance register for all key sectors, it P
should now depute one person as the in charge for this grievance book and the
complaints needs to be redressed within 24 hours.
III
15.2.2.2 PRIVATE SECTOR PARTICIPATION
Government of Tamil Nadu (GoTN) has laid down a policy clearance order for the ULBs in
the State, indicating the areas of privatization in the sectors of Solid Waste Management,
Water Supply, Sewerage, Drain Cleaning, Public Toilets, Road Maintenance, Street Lighting,
Parking lots, parks and play grounds, and vehicle maintenance. The GoTN states that this list
is indicative and local bodies are free to investigate other areas of privatization. The local
body would be saving the indirect cost towards pension, gratuity, etc if privatization efforts
are initiated and effective monitoring and evaluation on the delivery of services of private
Final
contractor is adopted. Report
Following are the private sector participation in the service delivery system of Vadalur Town
Panchayat.
Payment per
Sector Name of the work Coverage
annum
Fitting of lamps (Materials are

All the 18
Street Light provided by TP and only labour Rs.72000
Wards
provided by Private Contractor)
TNUIFSL 15-8
Changing of Busted Pipes Rs.42000

(Materials are provided by TP All the 18 Appx. (Rs.18 T
Water Supply
and only labour provided by Wards per meter of
Private Contractor) pipe changed)
N
Rs.900 per U
person per D
Solid Waste Poosali
Door to door collection and Kuppam Ward month to the
Management
segregation No.2 Self Help
P
(SWM)
Group
Members
User Charges for SWM: The Town Panchayat collects a Rs.10 from 290 households in the
III
prime locality
Table 15-E: Possible areas of privatization/outsourcing
Areas of privatization
Privatization of Solid Waste Management covering all wards of the town.

Providing household segregation bins once in five years for source
segregation and D-D collection.
Procuring protective gear (gumboots, gloves and masks) for conservancy
workers once in two years Final
Report
The ULB can also seek private sponsorship for purchase of household bins for waste
segregation once awareness is created among the public on the waste segregation
15.2.2.3 USER CHARGES
There is a need to introduce in phases “User Charges” for various infrastructure amenities
provided by the Town Panchayat. Cross subsidization of tariff, Innovative product
structuring and community participation are some of the measures which could be
explored to provide services for the urban poor.
Currently only for water supply the ULB is able to generate direct revenue in the form of
water charges, initial deposit and connection charges and indirectly through water tax
which is a component of property tax. For other services the ULB depends on its taxes
TNUIFSL 15-9
and external funds to fund its activities. As these are inadequate the ULB faces
constraints to initiate any major improvement scheme for development of the city.
T
To enhance its revenue the ULB would need to increase the deposit charges for new N
connections and can explore the option of increasing the water charges. This backed by U
higher collection efficiency and enhanced service coverage of water connections can
D
minimize revenue leakages from water sources.
P
15.2.2.4 E-GOVERNANCE & COMPUTERIZATION
E-governance is the application of information & communication technologies to

transform the efficiency, effectiveness, transparency and accountability of informational
& transactional exchanges with in government, between govt. & govt. agencies of III
National, State, Municipal & Local levels, citizen & businesses, and to empower citizens
through access & use of information.
At ULB level, an e-governance shall serve the following three basic requirements in a
user friendly manner
Information to the office bearers for their effective discharges of their duties, safeguard
the assets of the municipality and for future planning and development of their city.
Information to councilors to do effective service delivery to their constituents.
Information to public to pay their duty, update the information on assessment and to get
Final
the right services of the ULB in time. Report
Best Practices in e-governance:

Five key components of best practices in e-governance system are as below:
Better service delivery to citizens.
Improved services for business.
Transparent & anticorruption.
Empowerment through information.
Efficient Government purchasing.
Current Status in Vadalur Town Panchayat

The Town Panchayat has initiated steps for computerization of Birth & Death, Salary,
Accounts and Property Tax records
TNUIFSL 15-10
The GoTN has prescribed a list of E-Governance Module to all the municipalities; hence
the Town Panchayat should also start working on E-Governance module. The following
T
are the standard module suggested by GoTN
• Birth & Death,
N
• Property Tax U
• Non-Tax
D
• Water Charges
• Building Plan
P
• F.A.S
• Vehicle Maintenance
• Pay Roll
• Professional Tax
III
• D&O
• Movable& immovable
• Solid Waste Management
• Grievance Records
15.2.3 REFORMS IN PHYSICAL INFRASTRUCTURE

Table 15-F: Reforms in Physical Infrastructure
Sectors Suggested Reforms Final

Report
Service coverage of water connections to be increased from
current 35% to 85% by 2023-24
Water supply charges and connection charges need to be revised
on periodic basis i.e. once in 5 years to fund its future investments
in water supply.
Monthly service charges for the consumers can be increased
Water Supply
minimum of 25% every 5 years.
For funding its investments in water supply, the Town Panchayat
can consider alternative payment structures for water. It could
offer one-time payment options, where the connection fee is
bundled with usage fees for a number of years. The packages
could be made attractive by offering suitable levels of discounts.
TNUIFSL 15-11
Sectors Suggested Reforms

This could result in reduction in collection risk and reduced cost T
of billing and collections. The same could be used for other
N
services, where the collection requires the effort of the municipal
staff.
U
To improve the collection levels, the Town Panchayat could look D
at providing an incentive and penalty structure for payment of
P
water taxes and charges.
For reducing operating and maintenance costs, water leakage
audit, installation of leak detection equipment and replacement of
pipes needs to be done on regular basis.
Prior to the year 1987-88, there existed a water supply leak
III
detection system for minimizing the cost of water supply. It can
be now redefined and updated to serve as a record maintained for
Unaccounted for Water (UFW). UFW is the difference between
the volume of water delivered into the distribution system and the
water sold/billed or accounted for by legitimate consumption.
There is need for maintaining such a record for reducing the
possibilities of revenue leak through unauthorized/illegal
connections.
It may be mentioned that the percentage of non-revenue water is Final
Report
ascertained based on the condition assessment of the water supply
system. It is necessary to carry out a detailed study to estimate the
non-revenue losses to enhance the efficiency of the water supply
system. In addition, the Town Panchayat has to under take a
series of initiatives to arrest illegal water connections and
enhance the coverage of House Service Connections (HSC).
Pumps, motors and distribution network which undergo severe
wear and tear impact power costs of the Town Panchayat besides
reducing operational efficiency. Hence periodic maintenance of
the system with regular investments in up gradation and
replacement of pipelines, motors and pumps needs to be followed
to avoid huge one time expenditure to the maximum extent
TNUIFSL 15-12

possible. T
Privatization in routine maintenance relating to water supply
N
such as hand pumps can be considered
Periodic technical training to its engineering cell is required.
U
Implementation of 24/7 water supply system with the main D
features of:
P
Anytime full availability of water.
Confessional water user charges to slum dwellers and
higher charges for commercial users.
Reduction of water wastages and unaccounted water
flow by installing water audit equipments, energy
III
saving equipments, water metering and conducting
periodic water audits, energy audits etc.
100% accounting of water received and distributed.
Water quality monitoring system on daily basis.
Chlorinators at each pumping station.
Increased collection of revenue on water charges at
ULB level by using GIS based billing system on 24*7
systems.
Final
Door to door collection of garbage at household level and
Report
segregation of waste at source need to be implemented after
creating suitable awareness level. In case of Vadalur 16 % of
assessments covered by Door to Door collection and 22 % of
assessments involved in waste segregation
Private sponsorship of bins for waste segregation at house hold
Solid Waste
level can be looked into
Management
Vehicles used in SWM and conservancy activities such as tipper
lorries, tractors; dumper blazer etc can be maintained through
outsourcing arrangement with reputed contractors. The Annual
Maintenance Contract should be all comprehensive covering
various critical clauses in order to protect the Town Panchayat
from possible claims from the Ways to improve the revenue from
TNUIFSL 15-13

charges that are being collected from different commercial T
establishments like hotels including kiosks, eating houses,
N
restaurants, star hotels and retail markets should be studied.
The Town Panchayat can identify the ways to generate revenue
U
from Solid Waste by selling compost at market. D
The Town Panchayat can auction to the private parties for
P
disposal of recyclables.
Potential for getting carbon credit benefit through the Clean
Development Mechanism (CDM) need to be studied in making a
comprehensive solid waste management scheme.
Privatization of services for the following activities should be
III
undertaken to reduce the establishment charges and O&M
charges of Town Panchayat:
o Door to door collection of domestic waste
o Door to door collection of commercial waste, construction
waste and Market waste.
o Setting up and operation and maintenance of waste treatment
plants.
o Supplying vehicles on rent
o Transportation of waste on contract basis. Final
Report
Delegation of powers and fixing accountability should be done for
better management of the system. .
Human Resources Development
Special training to unqualified staff
Refresher courses for all levels of staff about
advances in the field of SWM
Exposure to elected members
Design of SWM course to Public Health staff
The Town Panchayat shall replace its other existing non-energy
saving lamps to energy saving lamps.
Street lights
Meeting the target of one pole per 40 meters by 2023-24
Energy Audit needs to be conducted periodically.
TNUIFSL 15-14

Private parties can be involved for financing, operation and T
maintenance of energy efficient street light projects to reduce the
N
cost incurred for the same.
U
Relaying Bitumen roads once in three years with patch works to
be undertaken based on the need in between years D
Roads Future roads to be laid with dedicated service lanes.
P
Relaying roads with recyclable materials like fly ash, can be
explored.
III
15.3 ADDITIONAL RESOURCE MOBILIZATION
Vadalur has initiated both the traditional and non-traditional alternatives for resource
mobilization. Resource Mobilization efforts need to be directed towards generating
additional revenue from existing avenues such as property taxes, profession tax, water
charges, service charges and fees and remunerative assets of the Town Panchayat.
Besides this the Town Panchayat would need to take measures to control expenditure in
water supply, solid waste management, street lighting etc. Additional resource
mobilization options such as Daily market fees, Weekly market fees, Bus stand fees, Fess Final
Report
from Pay & Use toilets, rent from commercial complex and rent from shopping mall and
community hall for the Town Panchayat are discussed in detail in subsequent paragraphs.
Incase of Vadalur the share Non-Tax revenue to the total revenue has been more than
80% in the last few years. The Non-Tax Revenue has grown at a CAGR of around
11.85% in the last 6 years ending .The “Other income” under the Non-tax revenue
consists mainly of Income from Weekly market and Rent from shopping complex
accounting for about 50% of this income. This income has grown at a CAGR of over
11.11 % in the last few years.
TNUIFSL 15-15
Revenue from Social Assets

Particulars 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
T
Fees for bay
and other
receipts in 5.88 6.01 6.12 6.37 6.22 7.00 N
the Bus
Stand
U
Fees for Pay 2.71 3.25 3.96 4.90 4.90 2.45
& Use toilets D
Cart Stand –
Lorry Stand P
1.50 1.78 2.05 3.82 3.82 3.43
- Taxi Stand
Fees
Market fees
– weekly 1.73 1.82 1.76 2.11 2.14 2.17
market
Rent on III
Shopping 0.00 15.30 18.03 22.11 25.03 23.92
Complex
Annual Income
(2008-09)
Particulars Area in Rs.Lakhs
Fees for bay and other 7.00
receipts in the Bus Stand 11350 Sq.mts.
2.45
Fees for Pay & Use toilets Inside the Bus stand
Cart Stand – Lorry Stand - 3.43
Taxi Stand Fees NA
Market fees – weekly 2.17 Final
market 3 Acres, at Ward No.6 Report
1 (144 Shops) inside the 23.92
Rent on Shopping Complex Bus stand
From the above table it is clear that Vadalur Town Panchayat earns an average of Rs.2.00
Lakhs from Market fees (Weekly) and about Rs. 17.39 Lakhs from shopping complex rentals.
The Bus stand fees also significantly contribute a significant share to the Non-Tax revenue
with an average fee of about Rs.6.27 Lakhs.
Based on our analysis and discussions with the officials/stake holders, the following are
additional revenue projects which are conceived in the Capital Investment Plan of the Town
Panchayat:
Creating weekly market in Ragavendra city at an estimated cost of Rs.50
Lakhs
TNUIFSL 15-16
16 FINANCIAL OPERATING PLAN

16.1 BACKGROUND- NEED FOR AN FOP
The Financial Operating Plan (FOP) assesses the financial strength of the Town
Panchayat to implement the identified investments. The Financial Operating Plan (FOP)
forecasts the Town’s finances on the basis of certain assumptions on income and
expenditure. The primary objective of the FOP is to ascertain the investment sustenance
capacity of the Town Panchayat under full project scenario of revenue enhancement and
expenditure control.
In the FOP following scenarios are envisaged
Scenarios Details
Base Case Scenario No New Projects and No Reforms
(“Business as Usual” Scenario)
Full Project -Scenario II Implementation of all Projects required for

the next 15 years with Reform Final Report
implementation
The key reforms are highlighted in Table below. The total reforms suggested have been
elaborated in Reforms Implementation Schedule (Annexure IV
Key reforms
Particulars Current practice Reform suggested
Revision in Revision once in 10 years 25% increase in every 5
Property tax rates years
Service level 26% 4% to 5% increase every
Coverage (Water year achieving 85%
TNUIFSL 16-1
Supply- Number of coverage by 2023-24

assessments)
Revision in Initial Adhoc revision Rs.2000 increase every 5
Deposit for New years for each new
Water Connections connection
Revision in Water Adhoc revision 25% increase every 5 years
Charges
Revision in Initial No UGD currently No UGD Proposed in

Deposit for New Capital Investment Plan
UGD Connections
Revision in No UGD currently No UGD Proposed in
Monthly user Capital Investment Plan
charges for UGD
16.2 FINANCIAL SUSTAINABILITY
The financial sustainability Analysis is carried out with the basic assumption that the
Town Panchayat will carry out reforms and projects envisaged under full project Final Report
scenario. The Financial Operating plan prepared for Vadalur Town Panchayat evaluates
the Town Panchayat’s financial position based on the base care scenario and the full
project scenario which are described below:
16.2.1 BASE CASE SCENARIO
In the base case scenario, the finances of the Town are forecast for next 15 years without
taking into consideration any new projects envisaged in Capital Investment Plan. .
Current practices with regard to tariff revision of key services are only considered.
Additional resources mobilized through various initiatives such as resource mobilization
through enhanced revision of property tax rates and the number of assessments (based on
projected population increase), increased revenue realization through faster growth in
TNUIFSL 16-2
service charges and fees including revision of user charges and connection charges for
water supply, other income etc are loaded to the FOP in the base case scenario. Routine
revenue expenses including Operations and Maintenance of existing assets have also
been considered and loaded to the FOP. Revenue surplus thus generated indicates
Town’s capacity to service the usual capital expenditure in the normal course of running
its operations.
16.2.2 FULL PROJECT SCENARIO

Full Project scenario for Vadalur has been worked out based on estimated demand supply
analysis of various physical and social infrastructure requirements of the Town and
feedback of Operating Working Group’s (OWG’S) consultation on the Town’s needs for
the next 15 years. The financial mix for funding these projects has been based on prudent
financial norms of funding and existing practices of funding currently being followed
today. The projects identified are vital for meeting the basic requirements of the Town as
per the infrastructure standards. Furthermore all the projects identified fall under the
obligatory functions under the 12 th Schedule. In the event of the Town not undertaking
the project, the key problems would be poor infrastructure resulting in poor service
delivery and loss of potential revenue from new revenue streams. To overcome these
issues the framework for FOP is developed taking into account existing strengths of the
Town and also reducing the inefficiencies in the system. Final Report
Phasing of the identified projects is done based on the possible year of construction,
demand supply gap analysis and investment priority of the OWG. Implications of the
investments worked out in terms of external borrowing required & the resulting debt
servicing commitments, external support in form of grants and additional operation and
maintenance expenditure anticipated due to the new projects identified have been worked
out for the next 15 years. Debt servicing capabilities, gaps in required investments from
Town for the said projects vs the actual availability with the Town Panchayat for the
Town’s contribution for the said projects has been worked out to estimate the extent of
Town’s capability to meet its contribution for financing the new projects identified under
Capital Investment Plan.
TNUIFSL 16-3
The implications on the investment and borrowing capability of the Town for all the
identified projects is worked out taking into consideration of all suggested reforms.
The objective of working out with all the reforms mainly to highlight the importance of
implementing the reforms on improving the financial capability of the Town for
successful implementation of the projects envisaged in CIP.
16.3 ASSUMPTIONS FOR FOP

This FOP is based on a whole range of assumptions related to income and expenditure.
These are critical to understand the financial projections worked out, sustenance of the
projected increase in revenue and expenditure under various scenarios and surplus thus
generated. Assumptions regarding interest rates, repayment terms and conditions,
financing pattern have also been explained in subsequent paragraphs. Assumptions
regarding additional Operation and Maintenance Expenses for the new projects identified
have also been provided. The assumptions would help in understanding the extent of
investment sustenance for future projects envisaged.
16.3.1 REVENUE INCOME Final Report
In case of taxes and non tax revenue such as property taxes and water charges, where the
base and basis of revenue is fairly well known and predictable the likely revenue is
forecast based on certain assumptions regarding growth in number of assessment,
revision in average revenue per property (for property taxes), revision in charges/Tariffs
(water charges). Table 16-A and Table 16-B, lists out the assumptions with regard to
forecasting income from property tax and water charges respectively. Assumptions
regarding other sources of revenue income have been given in Table 16 C. Tables
indicate the assumptions in revenue income in base case scenario and investment
scenario.
TNUIFSL 16-4
16.3.1.1 PROPERTY TAXES
Table 16-A : Key assumptions for forecasting income from Property Taxes
Description Current Level Base Case Scenario Investment Scenario
Annual Growth in 0.55% Projected based on the Projected based on the

Number of Assessment (From 2003-04
estimated increase in estimated increase in
till 2008-09)
population of the city population of the city
Periodic Increase in 25% increase in every 25% increase in every

Average Revenue per 10 years 5 years
property (%)
Source: Analysis
16.3.1.2 WATER CHARGES
Table 16-B: Key assumptions for forecasting income from Water Charges
Description Current Level Base Case Scenario Investment Scenario Final Report
% OF WATER CONNECTIONS TO PROPERTY TAX ASSESSMENT

2007-08 26%
2013-14 45% 45%
2018-19 65% 65%
2023-24 85% 85%
INITIAL DEPOSIT FOR NEW WATER SUPPLY CONNECTIONS ( Rs. per connection)
Domestic (Rs.)
From 2009-10 till 2013-14 Rs.2000 Rs.2000 Rs.2000
From 2014-15 till 2018-19 Rs.2000 Rs.4000
From 2019-20 till 2023-24 Rs.4000 Rs.6000
Non-Domestic (Rs.)
From 2008-09 till 2012-13 Rs.5000 Rs.5000 Rs.5000
From 2013-14 till 2017-18 Rs.5000 Rs.7000
TNUIFSL 16-5
From 2018-19 till 2022-23 Rs.7000 Rs.9000

WATER CHARGES (per month)
Domestic (Rs.)
From 2009-10 till 2013-14 Rs. 55 Rs. 55
From 2014-15 till 2018-19 Rs. 55 Rs. 68.75 (25%

increase)
From 2019-20 till 2023-24 Rs. 68.75(25% Rs. 85.94 (25%
increase) increase)
Non-Domestic (Rs.)
From 2009-10 till 2013-14 Rs.110 Rs.110
From 2014-15 till 2018-19 Rs.110 Rs.137.50 (25%

increase)
From 2019-20 till 2023-24 Rs.137.50 (25% Rs.171.85 (25%
increase) increase)
Source: Analysis
16.3.1.3 OTHER SOURCES OF REVENUE INCOME
Table 16-C : Assumption for Income
Particulars CAGR-(%) Projected Notes

growth
Rates Final Report
(%)
Profession Tax 16% 10% -
(2003-04 till
2008-09)
External Sources 25% (2003-04 15%

(Assigned Revenue+ till 2008-09)
Devolution Funds +
Grants &
Contribution)
TNUIFSL 16-6
Service Charges & 4% 7% to 10% 7% to 10% growth rate assumed

fees( Excluding on account Service charges &
Water Charges) other fees excluding water
charges.
Other Income Inconsistent 5% 2008-09 (Budget) is taken as the

trend base year for projections. This
includes project overhead
appropriation expenses.
Source: Analysis based on past financials provided by Vadalur Town Panchayat
16.3.2 REVENUE EXPENDITURE
16.3.2.1 CURRENT REVENUE EXPENDITURE
Table 16-D: Assumption for Revenue Expenditure
Particulars CAGR-(%) Projected Growth

Rates (%) Final Report
Personnel Cost & Salaries- 15% (2003-04 till 6%

Retirement Benefits ( Salaries) 2007-08)
Retirement Benefits-
Inconsistent trend
Operating Expenses 6% 10%
Repairs & Maintenance 4% 6%
Administrative Expenses Inconsistent Trend 5%
Source: Analysis based on past financials provided by Vadalur Town Panchayat
TNUIFSL 16-7
16.3.2.2 ADDITIONAL O&M EXPENDITURE DUE TO SUB-PROJECTS
This has already been covered in Chapter 11: Asset Management Plan: Table 11 E- O&M
for Proposed works
16.3.2.3 FUTURE DEBT OBLIGATIONS
Table 16-E: Key assumptions for forecasting future debt obligations
Sector Tenure Moratorium Rate of Interest (%)

Water Supply, UGD 20 5 10.00
Roads, Storm Water Drains 10 2 9.00
Others 5 NIL 9.00
Source: Analysis
16.3.3 FUNDING MECHANISM

Table 16-F: Financing Pattern for Proposed projects as per prudent Funding norms
Particulars Loan Grant TOWN Share/ Notes

Public
Contribution
Water Supply 50 30 20
Sanitation 50 50
Storm Water Drainage 60 30 10 Final Report
Solid Waste 60 30 10
Management
Roads, Traffic and 60 30 10
Transportation
Street Lighting 60 30 10
Socio-Economic Infrastructure
School Building 100
Parks and Playgrounds 50 50

Creating Green Spaces 50 50
Water Bodies improvement 50 50
Daily and Weekly Market 90 10 PPP
Slum Improvement- IHSDP ** Equal
80 20** Contribution from
the TOWN and the
beneficiaries
TNUIFSL 16-8
Burial Ground Improvement 50 50

Gassifier 50 50
Slaughter House 50 50
Land Development/ 90 10
Creating Weekly market
Community Hall 50 50
Municipal Building 50 50
Source: Analysis
16.4 OUTCOME OF FINANCIAL OPERATING

PLAN
16.4.1 BASE CASE SCENARIO (“BUSINESS AS USUAL

SCENARIO”)
In the Base Case Scenario, the finances of TOWN are forecast for the next 15 years without
taking into consideration any new projects envisaged in Capital Investment Plan (CIP). The
past trends in growth rates in revenue income and expenditure are assumed to continue over
the next 15 years. No new revenue sources such as user charges for service delivery systems
of the Town are envisaged under this scenario. Revenue surplus thus generated indicates Final Report
Town’s capacity to service the usual capital expenditure in the normal course of running its
operations. Table 16 G indicates the revenue surplus position of the Town over the 15 year
period.
The following are the outcome under this scenario:-
The projected cumulative revenue surplus (Closing Balance) of the TOWN shows a
healthy surplus position over the 15 year period with a revenue surplus touching
Rs.5028.51 Lakhs in the year 2023-24 after meeting its current debt obligations.
TNUIFSL 16-9
Table 16-G : Financial Operating Plan of Vadalur Base Case Scenario
Final Report
TNUIFSL 16-10
16.4.2 FULL PROJECT SCENARIO WITH

T
SUGGESTED REFORMS
N
The cash flows from the new projects under this scenario are shown in Table 16 H, the
financial impact for the Town Panchayat in implementing full projects through additional
U
resources generated on account of reforms suggested and as per the norms of funding is D
given in Table 16 I and also the debt service capability of the corporation is given in
P
Table 16 J. Implications of this investment in terms of external borrowings required,
resultant debt service commitment, and additional operation and maintenance expenditure
are worked out to ascertain sub-project cash flows. Revenue surpluses are applied to sub-
project cash flows emerging from full project investments – the Town’s fund net
III
surpluses indicates its ability to sustain full investments
Final Report
TNUIFSL 16-11
Table 16-H: Full Project Cash Flow - As per Prudent Financial norms
T
N
U
D
P
Final Report
III
TNUIFSL 16-12
Table 16-I: Financial Operating Plan of Vadalur - Full Project with Reforms-Prudent Funding Norms
T
N
U
D
P
Final Report
III
Table 16-J: Calculation of Debt Service Coverage Ratio (DSCR) With FULL PROJECT WITH REFORMS- As per Prudent Financial Norms
TNUIFSL 16-13
The full project investment proposed for the Town is to the tune of Rs. 3186.86 lakhs, the
details of sector wise financing pattern is presented in the following table.
T
Table 16-K: Sector wise Investments.
N
Project Sector Total Investment (Rs. In lakhs)
Water Supply 111.62 U
Sewerage 11.03
D
Sanitation 29.27
P
Storm Water Drainage 975.94
Solid Waste Management with gear and bins 377.21
Roads, Traffic and Transportation 787.61

III
Street Lighting 67.32
Slums and Urban Poverty 187.57
Socio-Economic Infrastructure 639.28

Total 3186.86
Sector wise Investment Pattern
Final Report
Water Supply
Water Supply Sewerage
4% 0% Sewerage
Sanitation
Sanitation
Socio-Economic 1%
Storm Water Drainage
Infrastructure
20%

Slums and Urban Roads, Traffic and Transportation
30%
Poverty
6% Street Lighting
Street Lighting
2% Slums and Urban Poverty
Roads, Traffic and Solid Waste Socio-Economic Infrastructure

Transportation Management
25% 12%
TNUIFSL 16-14
Funding pattern for the full projects is as stated in table below:
Table 16-L: Funding Pattern based on Prudent Financial Norms T

Full project Scenario-
N
Funding based on
prudent financial
U
Particulars norms (Rs.lakhs) D
Loan Amount 1380.66
P
External Support 1153.80
TOWN’s Contribution 652.40
Project Cost 3186.86
% of loan on Project cost 44%
III
Funding Pattern
TP's Share
20%
Loan
Loan Grant
44%
TP's Share
Final Report
Grant
36%
Out of the total project costs, the share of Town Panchayat is Rs. 652.40 lakhs, which
would be financed through internal accruals, after implementing the reforms with external
borrowings. The Town Panchayat would mobilize the resources to the tune of 20% from
their internal accruals with the remaining 80 % funding from lending agencies by way of
Grant and Loan components. Full reform implementation by the Town within the
scheduled time frame (as shown in Annexure IV – Reform Implementation schedule)
backed by strong external support is a must for bringing in projects required for improving
the Town over the next 15 years. The reform efforts of the Town need to be supported and
rewarded by financial assistance from funding agencies and strong external support in
order to implement all projects suggested under CIP.
TNUIFSL 16-15
Annexure I: Norms Vs Current Status for Vadalur
Reform Agenda for Vadalur Town Panchayat

Sector Indicators Unit Current Status Norms/Standard
Daily per capita supply Litres 63 70/100

Roads covered with distribution
network Percent 83 100
Storage capacity with respect to supply Percent 157 33
Service connection Percent 26 85
Water Supply Collection efficiency in water charges Percent 100% 100

Roads covered with Storm water
Storm Water Drainage drainage Percent 20 130
Waste generation per Capita per day Grams 83.3 < 350 grams
Collection efficiency Percent 84 100
Solid Waste management Conservancy staff per Km Persons 0.3 2
Door-Door collection
efficiency(Assessments covered) Percent 16.2 100
Assessments involved in waste

segregation Percent 22.5 100
Per capita road length Meters/Person 2.6 1.5
Roads Percentage of Surface roads Percent 68 100
Street Lighting Spacing between lamps Meters 46.6 30
Collection efficiency in Property taxes Percent 100%(2008-09) 100
Urban Finance Revision in Property tax Years Once in 10 years Once in 5 years
There is privatization with

respect to repair and
maintenance of Street Lights
,Water Supply and
participation of SHG in
SWM collection &
Segregation at one ward
Privatisation Areas (Ward Number 2) Solid Waste Management
The Town Panchayat has
initiated steps for
computerization of Birth &
Death, Accounts, Pay Bills
Institutional Reforms E-Governance Modules and Property Tax records 18
Annexure III: Project Implementation Schedule for Vadalur
Vadalur
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
Particulars Current Status Assistance
Technical Financial
Water Supply
Identiifed based on Demand

supply Gap Analysis and to be Government/Financial
Creating Distribution network for 13 Km by 2023-24 implemented in phases ULB Institution. ULB
Sewerage and Sanitation
Identified during OWG meeting Government/Financial

Purchasing Sullage lorry for waste water collection purpose and to be implemented in 2010-11 ULB Institution. ULB,
Public toilets / community toilets in Indira Nagar,

Abatharanapuram, Periya Colony, RC Saveriar Nagar and in Identified during OWG meeting Support from
Maruva Chinna colony. and to be implemented in Phases ULB Government/ULB
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24

Provision of Pucca drains for 86 Kms by 2023-24 (assuming
1/3rd of the storm water drain would be developed) Identified during OWG meeting and Support from Government ,
to be implemented in Phases ULB Financial Institution and ULB
Identified during OWG meeting and Support from Government ,

2 minor bridges across Vadakku Theru Odai to be implemented in Phases ULB Financial Institution and ULB

Public awareness for Waste segregation and D-D collection Support from Government
and Creating awareness about protective gear among Identified during Demand and , Financial Institution and
conservancy workers Supply Analysis ULB ULB
Support from Government

Identified during Demand and , Financial Institution and
Procuring segregation bins for each assessments Supply Analysis ULB ULB

Procuring protective gear for conservancy workers (once in two Identified during Demand and , Financial Institution and
years) Supply Analysis ULB ULB

Identified during OWG meeting , Financial Institution and
Contribution to scientific land fill site and Demand and Supply Analysis ULB ULB
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
Roads, Traffic & Transportation
Identiifed based on Demand supply Support from

Gap Analysis and to be implemented Government/Financial
Converting existing 10.828 Km kutcha roads into BT road. in Phases ULB institution, ULB Contribution
Support from
Converting 600 meter 2 lane Podhiyankuttai earthen road in to Identiifed based on Demand supply Government/Financial
BT road Gap Analysis & OWG ULB institution, ULB Contribution

Converting 700 meter single lane Arpaathiyappa earthen road Gap Analysis and to be implemented Government/Financial
in to BT road during 2011-12 ULB institution, ULB Contribution
Support from
Identiifed based on Demand supply Government/Financial
Converting 12.373 Km WBM roads into BT road. Gap Analysis & OWG ULB institution, ULB Contribution
Support from
Creating Bridge connecting Ragavendra city and Serakuppam Gap Analysis & OWG ULB institution, ULB Contribution
Support from
Converting 5 Km BT road into CC road Gap Analysis & OWG ULB institution, ULB Contribution
Support from
Creating Pedestrain foot path on both the sides for 1 Km in Identiifed based on Demand supply Government/Financial
Neyveli road. Gap Analysis & OWG ULB institution, ULB Contribution
Support from
Creating subways in Seerakuppam and Kattukottai railway Identiifed based on Demand supply Government/Financial
crossing. Gap Analysis & OWG ULB institution, ULB Contribution
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
Street Lighting & Energy Saving

Mechanism

Replacing 40W Tube lights into 36 W in Phases PSP institution, ULB Contribution

Installing electronic chokes for all tube light fittings in Phases PSP institution, ULB Contribution

Replacing 250 W 423 Nos SVL with (4 X 24) W T5 lamps in Phases PSP institution, ULB Contribution

Installing 300 street lights with poles in the next fifteen year Gap Analysis and to be implemented Government/Financial
period in Phases PSP institution, ULB Contribution
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
Slums and Urban Poverty
Identified from Demand Supply gap Support from

Infrastructure scheme for un-notified slum areas during OWG Consultation ULB Government/ULB
Socio-Economic Infrastructure
Creating green spaces in 43 approved layouts (Developing 14

layouts into parks and creating compound walls in remaining Identified from Demand Supply gap Support from Government
layouts to prevent encroachments) during OWG Consultation and ULB
Improving the condition of water bodies (Aiyan Eri, Thamarai
Eri, Nathanan Kuppam Eri, Sundukuli Eri, Karapakkam Eri,
Vengalathu eri, Thathan kuttai, shetty kulam in ward No.04,
Maruvarur kulam in ward No. 02 and Alamparappu lake in Identified during OWG meeting and Support from Government
ward No. 01) to be implemented in 2013-14 ULB and ULB
Identified during OWG meeting and Support from Government

Gassifier crematorium in one of the 8 burial grounds to be implemented in 2011-12 ULB and ULB
Burial ground improvement scheme in all remaining 7 burial Support from Government
grounds Identified during OWG meeting ULB and ULB

Creating weekly market in Ragavendra city Identified during OWG meeting ULB and ULB
Annexure IV Reforms Implementation Schedule For Vadalur
Vadalur
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
Reforms
Current status
Property Tax
100% (current
100% Collection Efficiency collection)
Mandatory Implementation of Revision of Property

Tax once in every five years is required Once in 10 years
Digitization of the property maps through GIS Not done
Computerization of Property tax records To be Initiated
Introducing alternate methods of tax payment Currently in Municipal

(ECS/EFT/Online Payment) office only
Other Reforms in property taxes as mentioned in

Chapter 15 of this report Limited extent
Water Supply
85%
Service coverage of water connections to be
increased from current 26% to 85% 26% 30% 34% 38% 42% 46% 50% 54% 58% 61% 65% 69% 73% 77% 81%
Revision of Water supply charges and initial deposit

for new water connection Ad hoc basis
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
Reforms
Current status
One time payment options for monthly water

charges Not done
Incentive and penalty structure for payment of water

taxes and charges. Not done
Water Leakage Audit for Un-accounted for Water

(UFW) Not done
Periodic maintenance of Water supply systems Ad hoc maintenance

Not done. To be
imparted on a regular
Periodic Training to Water Supply Staff basis
Privatization in routine maintenance relating to water

supply Not done
58%
Achieving drain length of 58 percent of road length
by 2023-24 20% 33% 46%
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
Reforms
Current status

16.20% of assessments
covered by Door to
Door collection and
22.50 % of
Door to door collection of garbage at household assessments involved
level and segregation of waste at source in waste segregation
Private Sponsorship of bins for waste segregation at

source Not done
Annual Maintenance Contract for Vehicles used in

SWM Not done
Potential for getting carbon credit benefit through

the Clean Development Mechanism (CDM) need to
be studied in making a comprehensive solid waste
management scheme Not undertaken
Periodic Training to Public Health Staff Regularly

2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
Reforms
Current status
Roads, Traffic & Transportation
Relaying Bitumen roads once in three years with

patch works to be undertaken based on the need in
between years ( Through use of recyclable materials
) Adhoc basis
Street Lighting & Energy Saving

Mechanism
40
Meter
Achieving 40 meters street light spacing by 2023-24 46.60 metres 44 Meters 42 Meters
To be Initiated. At
Energy Audit Studies present None
Private parties can be involved for financing,

operation and maintenance of energy efficient street
light projects to reduce the cost incurred for the
same. Not initiated
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
Reforms
Current status
Municipal Assets
Creation and updating the Comprehensive asset

register with regard to land and building Not Comprehensive
Valuation of assets and liabilities of the Municipality Not done
Periodic maintenance of Social Infrastructure Ad hoc
Accounting Reforms
Comprehensive Budgeting incorporating O&M costs

of various assets Not Done
Periodic Training to Accounting Staff Regularly
Finalisation of accounts and completion of audit of

accounts with in that specific year Not done
Zero based budgeting would need to be carried out

for continual monitoring of budgets and cash flow
management Not done
Minutes of the Inception Report review meeting for the consultancy
assignment for City Investment Plan (CIP) prepared by M/s. Darashaw &
Company Limited for Annamalai Nagar, Vadalur, Tharangampadi,
Ottenchataram, Thudiyalur, Thirupattur, S. Kannanur and Peravurani Town
Panchayats (Cluster 1) held on 28.08.2009 at 3.00 PM at TNUIFSL office.
Members Present:
S.No. Name Designation / Organisation

1 Mr.T.P.Subramanian President, Thudiyalur
2 Mr.A.Mahalingam EO, Thudiyalur
3 Mr.R.Subramanian Sanitary Inspector, Tharangampadi
4 Mr.A.Amanulla EO, Tirupattur
5 Mr.M.Jeyakodi EO, Ottenchataram
6 Mr.S.Gunalan EO, S.Kannanur
7 Mr.T.Srinivasan Junior Assistant, Vadalur
8 Mr.D.Ranganathan EO, Annamalai Nagar
9 Mr.B.Janarthanan EO,Peravurani
10 Mr.G.Habeeb Raja Jr.Asst, Tirupattur
11 Mr.D.Rajendiran AVP,TNUIFSL
12 Mr.U.Vijayaraghavan DM, TNUIFSL
13 Ms.K.Vyjayanthi Head-Southern Region,Darashaw
14 Mr.C.Gandhiraj Sr.Associate, Darashaw
15 Ms.R.Devi Associate, Darashaw
The consultants made the presentation through power point for inception report
for the consultancy assignment for City Investment Plan (CIP) for Annamalai
Nagar, Vadalur, Tharangampadi, Ottenchataram, Thudiyalur, Thirupattur, S.
Kannanur and Peravurani Town Panchayats (Cluster 1) in detail and the
consultants are requested to
1. To conduct stakeholders’ consultations to ascertain the demands from
public to identify infrastructure gaps.
Page 1 of 3
2. To present the draft final report to respective ULBs in the council after
incorporating the suggestions of stake holders meeting.
3. Recheck the financials of ULBs including debt status.
4. Analyse last 5 years financials and furnish the data on existing loan, loan
repaid on due date, overdue loan, loan balance and loans sanctioned but
yet to be availed. In this regard, all Town Panchayats were requested to
provide 5 years audited accounts and recent years’ un-audited accounts
along with DCB and loan statements and any other relevant details to the
consultants.
5. Study on the unused / under utilized assets of the ULB and suggest ways
for the better utilization of the same.
6. To identify any vacant land for development.
Annamalai Nagar:
- The consultants were requested to include the Storm Water Drain Project.
- Street light provision calculation to be rechecked with ULB.
Vadalur:
- DCB presented to be rechecked with ULB.
Tarangambadi:
- The consultants were requested to include the treatment plant in the
Water Supply Project.
- Reason for reduction in property tax assessment to be addressed
Ottanchataram:
- SWM on wastage generated in the markets area to be addressed and
suggest the ways / methodologies for improvement.
Page 2 of 3
Thudiyalur:
- Address the land issue for UGSS project.
- Address the need of the commercial centre
- Street light provision calculation to be rechecked with ULB.
Tirupathur:
- Address the need of the water body improvement.
The representatives of ULBs were requested to provide details of all the assets to
the consultants and the consultants were requested to include the same and
suggest optimum utilization of the assets.
The inception report submitted by the consultant is approved and consultant
was requested to incorporate the above comments in draft final report and
adhere to the schedule as per the Term of Reference for submitting the Draft
Final Report.
Page 3 of 3
Minutes of the Draft Final Report review meeting for the consultancy
assignment for Town Investment Plan (TIP) submitted by M/s. Darashaw &
Company Limited for Annamalai Nagar, Vadalur, Tharangambadi,
Ottenchataram, Thudiyalur, Thirupattur, S. Kannanur and Peravurani Town
Panchayats (Cluster 1) held on 23.12.2009 at 2.30 P M at Directorate of Town
Panchayats office, Chennai - 108.
Members Present:
S.No. Name Designation / Organisation

1 Mr. D. Rajendiran, IAS Director of Town Payanchayat
2 Mr. T.P. Subramanian President, Tudiyalur TP
3 Mr. G. Rajendiran EE / DTP
4 Mr. Nellai Sivagaminathan AEE / DTP
5 Mr. U. Vijayaraghavan DM / TNUIFSL
6 Mr. A. Sadayappan ADTP / Cuddalore
7 Ms. R. Joychirstel ADTP / Coimbatore
8 Mr. M. Balasubramanian ADTP / Thanjavore
9 Mr. K.S. Rajagopalan Asst. / DTP
10 Mr. M. Jayakodi EO, Ottanchatiram
11 Mr. S. Gunalan EO, S. Kannanur
12 Mr. D. Ranganathan EO, Annamalai Nagar
13 Mr. A. Mahalingam EO, Tudiyalur
14 Mr. G. Mangaleswaran EO, Tiruppattur
15 Mr. K. Balasubramanian EO, Tarangambadi
16 Mr. B. Janarthanan EO, Peravurani
17 Mr. K. Sridhar Associate, Darashaw & Co.,
18 Mr. C. Gandhiraj Sr. Associate, Darashaw & Co.,
19 Ms. R. Devi Associate, Darashaw & Co.,
The consultants submitted the draft final report and made presentation for the
consultancy assignment for Town Investment Plan (TIP) for Annamalai Nagar,
Vadalur, Tharangampadi, Ottenchataram, Thudiyalur, Thirupattur, S. Kannanur
and Peravurani Town Panchayats (Cluster 1) in detail and the consultants are
requested to incorporate the following suggestions / comments in the final report
which are listed below:

Thudiyalur:
To recheck the financial of ULB for the financial year 2007-08, 2008-09
based on the actuals financial statement and do the FOP.
Any changes in the rates, etc may be obtained from ULB and incorpoorate
the same in final report.
Vadalur:
The ULB is requested to provide the break up of Programme expense for
preparation of FOP for the town.
Tharangambadi:
The land ownership details of the agricultural office building in the same
premises of the Town Panchayat Office has to be provided by the ULB to
the consultants and the project cost of Rs. 30 lakhs for the same can be
shifted to second phase.
Oddanchatram:
After consultation with EO, TP the Combined Water Supply Scheme the
finalise the priority of the project from second phase to third phase in CIP.
Creating Green spaces in the Gassifier crematorium ground – As the town
has already taken up the project worth Rs. 5 Lakhs the same needs to be
removed from the CIP.
The cost of ponnagramkulam improvement project which was earlier
suggested under revenue department purview can be implemented by TP
and the cost for the same needs to be incorporated in the CIP.
After consultation with EO the cost of office building to be included in the
CIP.
The ULB is requested to provide the break up of Programme expense to
consultants in detail.
Peravurani:
Strengthening banks in ward 13 & 14 has to be checked as the same is
repeated twice in the CIP.
The representatives of TPs were requested to provide details of their updated
financials, Loan details, and also on the works/projects already taken up by them
to the consultants. The Draft Final Report submitted by the consultant is hereby
approved and consultants were requested to incorporate the above comments in
Final Report and adhere to the schedule as per the Term of Reference for
submitting the Final Report.

Vadalur Town Panchayat TNUIFSL

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Town Investment Plan – Vadalur

4.1.4 Service Adequacy................................................................................................... 4-6

7 Fiscal status..................................................................................................................................... 7-1

12 Consolidated issues............................................................................................................ 12-1

16.4.2 Full Project Scenario with suggested Reforms ....................................................... 16-11

Table 7-G : Expenditure Analysis .................................................................................................... 7-9

Annexure V Minutes of the Review Committee Meeting on Inception & Draft

Annexure VII List of Approved Layout

Annexure VIII OWG attendees list

Annexure IX Council Resoultion

AMP : Asset Management Plan T

CIP : Capital investment Plan

CMA : Commissionerate of Municipal Administration III

CPHEEO : Central Public Health & Environmental Engineering Organization

DSCR : Debt Service Coverage Ratio

DPR : Detailed Project Report

ESR : Elevated Storage Reservoir

ESA : Environmental and Social Assessment

FAS : Financial Accounting System

FOP : Financial Operating Plan

G.O : Government Order

GSR : Ground Level Reservoir

HSC : House Hold Connections

HSS : Higher Secondary School

HUDCO : Housing and Urban Development Corporation

Sq.Km : Square Kilometer D

LIC : Life Insurance corporation of India

OHT : Over Head Tanks

MIS : Management Information System

Mld : Million litres per day

MOA : Memorandum of Association

MUDF : Municipal Urban Development Funds

MUDP : Madras Urban Development Project Final

NGO : Non Government Organization

NHAI : National Highway Authority of India

O&M : Operations and Maintenance

PPP : Public Private Participation

PSP : Private Sector Participation

PWD : Public Works Department

RE : Revised Budget estimates

SC/ST : Scheduled Castes/Schedule Tribes D

SWD : Storm Water Drains

SWM : Solid Waste Management

TIP : Town Investment Plan

TOR : Terms of Reference

TNUIFSL : Tamil Nadu Urban Infrastructure Financial Services Limited

TUFIDCO : Tamil Nadu Urban Finance & Infrastructure Development Corporation

TWAD : Tamil Nadu Water Supply & Drainage Board

UDPFI : Urban Development Planning Formulation and Implementation

UGD : Under Ground Sewerage

ULB : Urban Local Bodies Final

WBM : Water Bound Macadam Report

WFPR : Work Force Participation Rate

As a financial intermediary, TNUIFSL intends to assist Annamalai Nagar,

1.1PROJECT OBJECTIVES Final

The objective of this exercise is to:

Define specific rehabilitation and capital improvement needs with regard

Define revenue enhancement and revenue management improvements

Initiate consultations with council and local stakeholders on the

Break up of energy cost on UG, WS etc.