Scoping Exercise To Support Sustainable

Scoping Exercise to
Support Sustainable
Urban Sanitation
in Tamil Nadu
SECONDARY REVIEW REPORT
December 2015
Scoping Exercise to support Sustainable Urban Sanitation in TN: Secondary Review Report | December 2015 i
Scoping Exercise to
Support Sustainable
Urban Sanitation
in Tamil Nadu
SECONDARY REVIEW REPORT
December 2015
Scoping Exercise to support Sustainable Urban Sanitation in TN: Secondary Review Report | December 2015 iii
For Citation: TNUSSP, 2015. Scoping Exercise to Support Sustainable Urban Sanitation
in Tamil Nadu, Secondary Review Report
DOI: https://doi.org/10.24943/tnusspsrr.12.2015
This document is produced as part of Tamil Nadu Urban Sanitation Support Programme (TNUSSP).
TNUSSP supports the Government of Tamil Nadu (GoTN) and cities in making improvements along
the entire urban sanitation chain. The TNUSSP is being implemented by a consortium of organisations
led by the Indian Institute for Human Settlements (IIHS), in association with CDD Society, Gramalaya,
and Keystone Foundation.
Document Team: Rajiv Raman, Devi Kalyani, Geetika Anand, Shivaram K.N.V., Chaya Ravishankar
Editing: Word Lab, IIHS, Bengaluru
Production: Shaheena Manoj, Krishnapriyaa P., Govardhan Seshachalam
Team Leader: Kavita Wankhade
Project Director: Somnath Sen
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Scoping Exercise to support Sustainable Urban Sanitation in TN: Secondary Review Report | December 2015 iv
Contents
Abbreviations ....................................................................................................................................... ix
EXECUTIVE SUMMARY ......................................................................................................................E1
Introduction ....................................................................................................................E3
Physiography, Climate, Rainfall ....................................................................................E3
Water Resources...........................................................................................................E3
Tamil Nadu Economy and Social Development ............................................................E4
Urbanisation in Tamil Nadu ...........................................................................................E5
Household Sanitation and Drinking Water Supply in Urban Tamil Nadu ......................E6
Wastewater Collection and Treatment in Urban Tamil Nadu ........................................E7
Institutional Arrangements for Urban Sanitation and Water Supply .............................E7
Key Issues in Sanitation and Water in Urban Tamil Nadu ............................................E9
1. Study Background ........................................................................................................................... 1
Urban Sanitation in Tamil Nadu: Scope of Study ..................................................................... 3
Project Objectives and Scope of Work ..................................................................................... 3
Scope and Structure of this Document ..................................................................................... 4
2. Physical Setting: Geography, Resources and Demography ........................................................... 5
Geography and Physiographic Features .................................................................................. 7
Climate, Temperature and Rainfall ........................................................................................... 8
Forests ...................................................................................................................................... 9
Mineral Resources .................................................................................................................. 11
Water Resources in Tamil Nadu ............................................................................................. 13
Surface Water Resources of Tamil Nadu ............................................................................... 14
2.6.1. Quality Considerations in Select River Basins of Tamil Nadu .................................. 15
2.6.2. Waterways of Chennai .............................................................................................. 17
Ground Water Resources of Tamil Nadu ............................................................................... 17
2.7.1. Change in Groundwater Level .................................................................................. 18
2.7.2. Quality of Groundwater ............................................................................................. 19
Water Resources: Demand-Supply Estimates ....................................................................... 20
3. Economy of Tamil Nadu ................................................................................................................ 23
Manufacturing and Industries ................................................................................................. 25
4. People of Tamil Nadu and Urbanisation ....................................................................................... 27
Urbanization in Tamil Nadu .................................................................................................... 30
5. Urban Watsan and Environmental Services in Tamil Nadu .......................................................... 33
Drinking Water Supply ............................................................................................................ 35
Household Access to Drinking Water Supply in Urban Tamil Nadu ....................................... 36
Household Arrangements for Sanitation in Urban Tamil Nadu .............................................. 37
Scoping Exercise to support Sustainable Urban Sanitation in TN: Secondary Review Report | December 2015 v
Wastewater Treatment Infrastructure ..................................................................................... 38
Solid Waste Management ...................................................................................................... 39
6. Legal Framework for Urban Water Supply and Sanitation ............................................................ 43
State Administration Arrangements for Urban Areas ............................................................. 46
6.1.1. The Department of Municipal Administration and Water Supply (DMAWS) ............. 46
6.1.2. Institutions Administered by MAWSD ....................................................................... 47
6.1.3. Finances Managed by the Department ..................................................................... 51
6.1.4. Housing and Urban Development Department (HUDD) ........................................... 52
6.1.5. Finances Managed by the Department ..................................................................... 54
6.1.6. The Hindu Religious and Charitable Endowments Department ............................... 54
Devolution of Functions, Functionaries and Funds ................................................................ 54
Financing of Urban Sector Investments ................................................................................. 55
State Budgets: A Review ........................................................................................................ 56
Financial Situation of ULBs in Tamil Nadu ............................................................................. 57
BIBLIOGRAPHY ................................................................................................................................... 61
Scoping Exercise to support Sustainable Urban Sanitation in TN: Secondary Review Report | December 2015 vi
List of Figures
Figure E.1: (a) River Basins with District Boundaries; (b) Blocks with Percentage of Groundwater
Development .........................................................................................................................................E4
Figure E.2: Institutions within MAWSD .................................................................................................E8
Figure 2.1: Physiography of Tamil Nadu – Elevation .............................................................................. 7
Figure 2.2: Tamil Nadu Districts with proportion (percent) of area under Forests ................................ 10
Figure 2.3: River Basins of Tamil Nadu with District Boundaries ......................................................... 14
Figure 2.4: Stage of Groundwater Development in Blocks, Tamil Nadu .............................................. 18
Figure 2.5: Change in Depth to Groundwater: ...................................................................................... 18
Figure 2.6: Presence of Iron, Fluoride, Nitrate and Fecal Coliform in Groundwater............................. 19
Figure 3.1:Trend in State GDP over 2005 to 2015 by Primary, ............................................................ 23
Figure 3.2: Trend of Composition of State GDP over 2012 to 2015 by Constituent sub-sectors ......... 24
Figure 4.1: Total Population Growth Trend in Tamil Nadu - 1901-2011 ............................................... 29
Figure 4.2: Settlement Map of Tamil Nadu ........................................................................................... 31
Figure 5.1: Household arrangements for urban sanitation in Tamil Nadu ............................................ 37
Figure 6.1: Institutions within MAWSD.................................................................................................. 47
Figure 6.2: Institutions within HUDD ..................................................................................................... 53
Scoping Exercise to support Sustainable Urban Sanitation in TN: Secondary Review Report | December 2015 vii
List of Tables
Table E.1: Classification of Districts and their share of Net Domestic Product 2011-2012 ..................E5
Table E.2: Size-Class Distribution of Urban Areas in Tamil Nadu .......................................................E6
Table 2.1: Key Demographic Indicators for Scheduled Tribes in Tamil Nadu ...................................... 11
Table 2.2: Distribution of Mineral Resources in Tamil Nadu ................................................................. 12
Table 2.3: Current Demand-Supply Situation for Water Resources in Tamil Nadu.............................. 20
Table 3.1: Classification of Districts and their share of Net Domestic Product 2011-2012 .................. 24
Table 4.1: Size-class Distribution of Urban Areas in Tamil Nadu ......................................................... 32
Table 5.1: Per Capita Water Supply in Urban Tamil Nadu ................................................................... 35
Table 5.2: Access to Drinking Water by Urban Households in Tamil Nadu ......................................... 36
Table 5.3: Existing and Proposed Infrastructure for Network-Based .................................................... 39
Table 5.4: Scenario of SWM in Municipal Corporations ( 2010) ........................................................... 39
Table 5.5: Details of availability of land for disposal (2013) .................................................................. 40
Table 6.1: Budget of the Department of Municipal Administration and ................................................ 52
Table 6.2: Budget of the Department of Housing and Urban Development 2014-15 (in Million) ......... 54
Table 6.3: Overall financial scenarios of ULBs in Tamil Nadu 10 MCs and Municipalities (Rupees in
Crore) .................................................................................................................................................... 55
Scoping Exercise to support Sustainable Urban Sanitation in TN: Secondary Review Report | December 2015 viii
ABBREVIATIONS
ASI Annual Survey of Industries
BIS Bureau of Indian Standards
BMGF Bill and Melinda Gates Foundation
BSUP Basic Services for the Urban Poor
CAA Constitution Amendment Act
CIPET Central Institute of Plastic Engineering Technology
CMA Commissionerate of Municipal Administration, Govt. of Tamil Nadu
CMA Chennai Metropolitan Area
CMCDM Chennai Mega City Development Mission
CMDA Chennai Metropolitan Development Authority
CMWSSB Chennai Metropolitan Water Supply and Sewerage Board
CoC Corporation of Chennai
CPCB Central Pollution Control Board
CSMC Central Sanctioning and Monitoring Committee
CSO Central Statistical Organisation
DMA Directorate of Municipal Administration
DPR Detailed Project Report
DTCP Directorate of Town and Country Planning
DTP Directorate of Town Panchayat, Govt. of Tamil Nadu
EPA The Environment (Protection) Act
EPC Engineering, Procurement, Construction
ER Elephant Reserve
FSFC Fourth State Finance Commission
FSM Fecal Sludge Management
FY Fiscal Year
GIS Geographic Information Systems
GoI Government of India
GoTN Government of Tamil Nadu
GSDP Gross State Domestic Product
HDF High-density Fiberboard
HDFC Housing Development Finance Corporation Limited
HUDD Housing and Urban Development Department
IAS Indian Administrative Service
IIHS Indian Institute for Human Settlements
ILFS Infrastructure Leasing and Financing Company
IMFL Indian Made Foreign Liquor
IRMA Independent Review and Monitoring Agency
ITIR Information Technology Investment Region
IUDM Integrated Urban Development Mission
JICA Japan International Co-operation Agency
JNNURM Jawaharlal Nehru National Urban Renewal Mission
KW Kilo Watt
LDP Low Density Polyethylene
LEA Loss of Ecology Authority
MAWSD Department of Municipal Administration and Water Supply, Govt. of Tamil Nadu
MCM Million Cubic Meters
MIDF Metropolitan Infrastructure Development Fund
Scoping Exercise to support Sustainable Urban Sanitation in TN: Secondary Review Report | December 2015 ix
MLD Million Litres Daily
MoC Memorandum of Cooperation
MoUD Ministry of Urban Development, Govt. of India
MSW Municipal Solid Waste
MUDF Municipal Urban Development Fund
NDP Net Domestic Product
NEM North East Monsoon
NGO Non-Governmental Organisation
NTADCL New Tirupur Area Development Corporation Limited
NTR Non-Tax Revenue
NUSP National Urban Sanitation Policy
O&M Operations and Maintenance
OG Out-Growth
OGl Operative Guidelines
PCPIR Petroleum, Chemical and Petrochemical Investment Region
PIU Project Implementation Units
PMU Project Management Unit
SDP State Domestic Product
SEC State Election Commission
SFC State Finance Commission
skm square kilometer
SLSC State Level Sanction Committee
ST Scheduled Tribe
STP Sewage Treatment Plant
SWM South West Monsoon
TADP Tiruppur Area Development Program
TANGEDCO Tamil Nadu Generation and Distribution Corporation
TMC Thousand Million Cubic Feet
TN Tamil Nadu
TNCHF Tamil Nadu Co-operative Housing Federation
TNHB Tamil Nadu Housing Board
TNPCB Tamil Nadu Pollution Control Board
TNSCB Tamil Nadu Slum Clearance Board
TNUDF Tamil Nadu Urban Development Fund
TNUFIDCO Tamil Nadu Urban Finance and Infrastructure Development Corporation Limited
TNUIDRF Tamil Nadu Urban Infrastructure Development and Renewal Fund
TNUIFSL Tamil Nadu Urban Infrastructure and Financial Services Limited
TNUITCL Tamil Nadu Urban Infrastructure Trustee Company Limited
TNWIC Tamil Nadu Water Investment Company
TP Town Panchayat
TSU Technical Support Unit
TURIF Tamil Nadu Urban Road Infrastructure Fund
TWAD Board Tamil Nadu Water Supply and Drainage Board
UIDSSMT Urban infrastructure Development Scheme for Small & Medium Towns
UIG Urban Infrastructure and Governance
ULB Urban Local Body
VAT Value Added Tax
VLT Vacant Land Tax
WSPF Water and Sanitation Pooled Fund
Scoping Exercise to support Sustainable Urban Sanitation in TN: Secondary Review Report | December 2015 x
E
Executive
Summary
E1.1. Introduction E3
E1.2. Physiography, Climate, Rainfall E3
E1.3. Water Resources E3
E1.4. Tamil Nadu Economy and Social Development E4
E1.5. Urbanisation in Tamil Nadu E5
E1.6. Household Sanitation and Drinking Water

E6
Supply in Urban Tamil Nadu
E1.7. Wastewater Collection and Treatment in Urban

E7
Tamil Nadu
E1.8. Institutional Arrangements for Urban Sanitation

E7
and Water Supply
E1.9. Key Issues in Sanitation and Water in Urban

E9
Tamil Nadu
EXECUTIVE SUMMARY
Introduction
The secondary review of urban sanitation in Tamil Nadu provides a situational analysis of the water and
sanitation situation in urban areas of the State, situated in the context of economic growth, demographic
change, natural resource endowments and their historical utilisation character. This Study draws mainly
from available secondary literature and data from the Government and other public sources.
Physiography, Climate, Rainfall

Tamil Nadu, the eleventh largest state of India is situated at the south-western corner of the country
and covers an area of 130,058 skm. The main physiographic features in the State are the coastal plain
on the eastern side, forming a major portion of the State; a central plateau region of slightly elevated
plain (elevation ranging between 150 to 300 m) studded with hills making up the Eastern Ghats; and
the hilly regions of the Western Ghats on the West.
The proximity of the sea influences the climate of the eastern and southern parts of the state whereas
hilly topography and the inland locations play important roles in modifying the climate over rest of the
State. Temperatures tend to be moderate in the coastal areas, while inland it can go to extremes in
some places. Generally, the average temperatures for most parts of the state stay between 28 o C and
40o C in summer and between 18o C and 26o C in the short-duration winter season. The urban centers
of Chennai, Nagapattinam and Madurai record some of the highest temperatures in summer.
The normal annual rainfall falling over the state is 958.4 mm. About 48 percent of the total annual
average rainfall is received during the North-East Monsoon, while about 35 percent is received during
South-West Monsoon and the balance in the other seasons. Orographic impacts are believed to play
an important role in the spatial distribution of rainfall. Rainfall over coastal areas is more and decreases
inland. Also the rainfall over northern end is more than the southern locations. The coastal districts
receive about 65 - 75 percent of annual rainfall and interior districts get about 40-50 percent in the NEM
season.
Water Resources
Of the annual water potential of 46,540 MCM, surface flows, account for about half. Most of the surface
water has already been tapped, primarily for irrigation the largest user. At the end of the 11th plan
(2007-2012), the irrigation potential created had reached the ultimate irrigation potential estimated, and
more than ninety-nine percent (99.6percent) of the potential created is being utilised. Surface water
resources in the State are thus constrained by availability volumes and further constrained by the
degradation of existing water resources by pollution from industries and households. There is also
paucity of relevant usable information providing for linkages between water flows, return flows, end-use
and pollution, as well as the impacts of these and climate events (floods, droughts) on households.
Scoping Exercise to support Sustainable Urban Sanitation in TN: Secondary Review Report | December 2015 E3
Figure E.1: (a) River Basins with District Boundaries; (b) Blocks with Percentage of
Groundwater Development
Source: (a) (GoTN, n.d. ), Last accessed on Oct 03 2015 (b) (TWAD Board, n.d.) accessed Oct 08 2015
The utilisable groundwater recharge is estimated at 22,423 MCM. The current level of utilisation is about
60 percent of the available recharge. Over the last five years, the percentage of safe blocks has declined
from 35.6 percent to 25.2 percent while the semi-critical blocks have gone up by a similar percentage.
Over-exploitation has already occurred in more than a third of the blocks (35.8 percent) while eight
blocks (two percent) have turned saline. The depth to groundwater also varies from district to district.
Thirteen (42percent) of the thirty-one districts1 have a minimum GW level deeper than the State average
(green line), while 15 of the 31 (48percent) districts have maximum GW levels deeper than the State
average. Groundwater contamination is an issue in most districts. The extent of contamination varies
and is seemingly not very high for excess Iron or excess Fluoride. The issue of nitrates and fecal
coliform contamination suggests higher risk, but does not exceed 25 percent of samples.
The projections for 2044 (State Framework Water Resources Plan for Tamil Nadu) indicate significant
increases in domestic and industrial consumption as well as in energy production. This is anticipated to
stress further the already stressed water resource potential of the State.
Tamil Nadu Economy and Social Development

Tamil Nadu has the second largest Gross Domestic Product amongst the States, after Maharashtra.
Economic growth has been following a cyclical trend with positive linear character every 4-5 year
followed by a year of lower growth. Over the FY 2005-2015 period, the primary sector shows near-
stagnation and even decline in some years; Manufacturing has grown steadily over the first half of the
period, but has slowed down in year-on-year growth after FY 2011; and the services sector has
witnessed the highest growth. While no sub-sector withi`n the primary sector displays any prominence
during this period, registered-manufacturing (formal), construction and allied sub-sector of transport,
1
Excluding Chennai
storage and communication display prominent shares in the state domestic product from the Industry
sector; the sub-sectors of trade, hotels and restaurants, real estate, building ownership and other
services have prominent shares from the services sector. Within the secondary and tertiary sectors,
land-related economic activities, connectivity and mobility aspects of industrial and tertiary growth and
leisure seem to be enjoying continued growth (in the last three years) and suggest a very urban focus.
The scale and growth of economic activity in the districts is significantly different and ten of the thirty
two districts in the state account for more than half the State Domestic Product (see Table below). The
distribution of domestic product for 2011-2012 (taken as a typical year where data is available) is
presented in Table (E.1). The category of districts with low Net Domestic Product (NDP), i.e. less than
1percent of SDP;are about ten years behind the category of districts with a share greater than 4 percent
of SDP, in terms of the scale of economy. The middle category of districts in terms of NDP are also the
ones reported to have more persons employed in the primary sector and include some of the paddy-
growing areas of the State.
Table E.1: Classification of Districts and their share of Net Domestic Product 2011-2012
Total Net
Category Share
District
Sl. (District NDP of
District(s) Domestic
No. as Share of State
Product (In
State) Total
Lakh Rupees)
Perambalur, Ariyalur, Thiruvarur, The Nilgiris,

01 Theni, Ramanathapuram, Sivagangai, Less than 2 % 13 %
4,640,807
Nagapatinam. Pudukkotai, Karur, Dharmapuri
Thiruvannamalai, Villupuram, Thanjavur,

Dindigul, Krishnagiri, Namakkal, Thoothukudi,
02 2-4 % 33 %
Cuddalore, Virudhunagar, Kanniyakumari, 11,875,389
Erode
Madurai, Tirunelveli, Tiruppur, Salem,

Greater than 4
03 Tiruchirapalli, Vellore, Coimbatore, 54 %
% 19,479,853
Kancheepuram, Thiruvallur, Chennai
Source: IIHS Analysis of CSO (2015)
Urbanisation in Tamil Nadu

Tamil Nadu is the most urbanised state (amongst the large states 2) in the country, with an urban
population share of 49 percent. The urban population is spatially dispersed and there are variations in
urbanisation levels across districts and regions of the state. Unlike most other states where a significant
proportion of the urban population is in and around two or three primate cities (e.g. Mumbai and Pune
in Maharashtra, Bangalore and Mysore in Karnataka), urban centres are well dispersed in Tamil Nadu.
There are corridors of urban concentrations (Sivaramakrishnan & Singh, 2005); namely Chennai-
Krishnagiri-Hosur (estimated to account for 43 percent of state’s urban population by 2021),
Coimbatore-Erode-Salem-Krishnagiri (estimated to account for 19 percent of state’s urban population
by 2021), the corridor of Tiruchi-Madurai-Tirunelveli, the coastal corridor of Chennai-Puducherry-
Cuddalore-Thanjavur-Karaikudi (anticipated 7 percent of state’s urban population by 2021), and in a
2 Delhi, Goa and Mizoram have a higher proportion of urban population in their state.
lesser way the corridor of Tuticorin-Nagarcoil (anticipated to account for 4 percent of state’s urban
population by 2021).
The state has 33 districts for administrative purposes. Of this the district of Chennai is wholly urban.
Apart from Chennai, there are six districts that have urbanisation share of more than 60 percent. There
are 14 districts that display urbanisation levels less than 30 percent. The districts with lower urbanisation
levels are mostly situated on the coast and the central parts of the state. The statutory urban units
(ULBs and Cantonment Boards) exhibit a fair amount of dispersion, with significant numbers existing in
about 60 percent of districts of the state. This has been a demographic and development feature of the
state and is evidenced in the census from 2001. The urban areas of Tamil Nadu are organized into 10
Corporations, 148 Municipalities, 561 Town Panchayats, two Cantonment Boards, and 376 Census
Towns. The distribution of urban areas across size-class of settlements is presented in Table (E.2).
Table E.2: Size-Class Distribution of Urban Areas in Tamil Nadu

Type of Urban Area
Sl.
Class Municipal Town Cantonment Census
No. Municipality Total
Corporation Panchayat Board Town
Class I
(Greater
01 10 21 - - 1 32
than
1,00,000)
Class II
02 (50,001 – - 74 1 - 5 80
100,000)
Class III
03 (20,001- - 52 138 1 57 248
50,000)
Class IV
04 (10,001 – - 1 287 1 117 406
20,000)
Class V
05 (5,001 – - - 125 - 171 296
10,000)
Class VI
06 (Less than - - 10 - 25 35
5,000)
Total # 10 148 561 2 376 1097
Total* 12 124 528 - - -
Source: Census 2011, Operative Guidelines, GoTN, 2014;

# according to Census 2011, *according to Operative Guidelines
Household Sanitation and Drinking Water Supply in Urban Tamil Nadu

80 percent of the urban households in the State have access to tap water supply (within premises and
out) with 66 percent of these households accessing treated tap water and the remaining untreated tap
water. Only 45 percent of the urban households have access to piped water supply within premises,
and 40 percent of the urban households have access to treated water within premises. Households with
access to piped water supply are higher in the Municipal Corporations at 63 percent, followed by
Municipalities (43 percent) and then Town Panchayats (34 percent); amongst statutory urban areas. In
census towns too, 34percent of the households have access to piped water supply within premises.
Access to treated piped water is highest in Municipal Corporations (60 percent), Municipalities (37
percent) and then Town Panchayats (25 percent) in that order. Tube-wells are the next most prevalent
source of drinking water in urban Tamil Nadu with about six percent of households using this as the
primary source. Amongst statutory urban areas, tubewells are reported to be higher in Municipalities (7
percent), than Town Panchayats (5 percent) and the Municipalities (4 percent). Census Towns and
Cantonment Boards report the highest proportion of households with tubewells (9 percent) as a primary
source.
16 percent of the urban households in Tamil Nadu reside in slums. 30 percent of slum households
access treated water through a piped water supply, while another three percent access untreated water.
44 percent of the urban slum households access water through piped supply, but not within the
premises, while another four percent access this away from premises. Hand pumps (8 percent) and
Tube-wells (6 percent) are the mostly commonly used sources for drinking water, after tap water.
In Urban Tamil Nadu, about 75 percent of households have toilets within their premises, 9 percent use
public toilets, and 16 percent resort to open defecation. About 66 percent of the household toilets are
reported to have water closets (Census of India, 2011a). About 27 percent of the toilets (40 percent of
those with water closets) are connected to sewer system, and 38 percent of the household toilets (40
percent of those with water closets) are connected to septic tanks (Census of India, 2011a). In Class 1
Cites, the coverage of household toilets connected to sewers is as high as 50 percent; smaller cities,
hence, have a higher prevalence of septic tanks. Of the households not having a latrine within premises,
a significant proportion (42 percent) of these households, reside in Town Panchayats, 25percent in
Municipalities and about 16percent in Municipal Corporations. Census Towns account for 17percent of
the urban households without latrines. Amongst the districts, Salem (9 percent), Coimbatore (7 percent),
Tirunelveli and Virudhnagar (7percent) and Erode have the larger share of households without latrines.
35percent of the households without latrines use public conveniences. The proportion of households
using public conveniences is higher in Municipalities and marginally lower in Municipal Corporations
and Town Panchayats; they are lowest in Census Towns. Amongst the districts, Coimbatore, Salem
and Virudhnagar have higher proportion of households reported accessing a public convenience;
followed by Chennai, Erode, Namakkal and Theni.
Wastewater Collection and Treatment in Urban Tamil Nadu

In urban Tamil Nadu, 1,129 MLD of sewage treatment capacity exists with another 151 MLD under
construction; however current utilisation is reported to be lower at 394 MLD (CPCB, 2013). While on-
site systems are the most predominant household arrangements across the State, there has hitherto
been limited attention paid to safe collection and treatment of human excreta from septic tanks. Limited
data is available on the number and coverage of these vehicles, as these are mostly operated by the
informal sector, and a largely unregulated activity that has started receiving attention only lately
Institutional Arrangements for Urban Sanitation and Water Supply

The legal framework for urban governance in Tamil Nadu evolved based on the legacy of law and
administrative arrangements in Chennai (Madras Municipal Corporation Act, 1919) and other
municipalities modelled thereon. The governance of smaller towns – Town Panchayats - evolved within
a legal framework shared with villages, i.e. the Tamil Nadu Panchayats Act, 1958. These Acts were
amended to be in conformity with the 73rd and 74th Constitutional Amendment Acts (1993 and 1994).
Amendments to the District Municipalities Act added a separate chapter on Town Panchayats.
The other key legislations for urban governance include the Tamil Nadu Water and Drainage Act 1971,
the Chennai Metropolitan Water Supply and Drainage Act, 1977, housing and slum improvement (e.g.
the Tamil Nadu Housing Board Act 1961, and the Tamil Nadu Slum Clearance Act, 1971), and urban
planning and land-use regulation (the Town and Country Planning Act, 1971). The Town and Country
Planning Act, 1971A provides for the notification of areas, constitution of planning and development
authorities like the Chennai Metropolitan Development Authority (CMDA), preparation and
implementation of Master Plans and Detailed Development Plan and enforcement of Development
Control Regulations.
The Municipal Administration and Water Supply Department (MAWSD) and the Housing and Urban
Development Department (HUDD), are the two key urban departments in the State Government.
The MAWSD is responsible for coordinating the activities of various organizations and agencies in the
planning, execution and maintenance of measures to provide improved infrastructure and services in
the urban areas of the State, and the provision of drinking water supply in rural and urban areas of the
state. In the administration of the MAWSD, the Principal Secretary is assisted by a Special Secretary,
a Joint Secretary and two Deputy Secretaries. The Commissionerate of Municipal Administration and
the Directorate of Town Panchayats are sub-departments of this Department in achieving the objectives
set forth by the Government.
MAWSD also has administrative control of undertakings/bodies such as the Corporation of Chennai
(CoC), the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) and the Tamil Nadu
Water Supply and Drainage Board (TWAD Board), the last being responsible for the provision of water
supply and underground sewerage facilities in the state (other than Chennai). MAWSD also administers
the New Tiruppur Area Development Corporation Limited (NTADCL), which caters to the drinking water
supply and industrial water needs of Tiruppur and nearby areas.
Apart from these, the Tamil Nadu Urban Development Fund (TNUDF) managed by the Tamil Nadu
Urban Infrastructure and Financial Services Limited (TNUIFSL), and the Tamil Nadu Urban Finance
and Infrastructure Development Corporation Limited (TNUFIDCO) are the two urban financial
intermediaries that guide the Urban Local Bodies in assessing the financial viability of projects and
assist in the development of urban infrastructure. These agencies also coordinate in channelizing funds
from Government of India, external agencies and financial markets for the development of urban
infrastructure. The expertise of institutions like the TNUIFSL and the TNUFIDCO are utilized to provide
necessary consultancy based support services to the urban local bodies to improve their technical
capability for implementing bigger and more complex projects. Under the MAWSD administration is
also, the Tamil Nadu Water Investment Company (TNWIC), a joint venture of the GoTN and the ILFS.
The MAWSD coordinates and manages the work of eight urban agencies:
Figure E.2: Institutions within MAWSD
Source: Adapted from DMAWS (2015)
Key Issues in Sanitation and Water in Urban Tamil Nadu
• Access
• Full Cycle
• Water Stress
• Public Health Outcomes
• Behaviour change
• Knowledge generation
• Institutional Priority to urban Sanitation
• Financing
Need for validation of specific issues and solutions during the Primary Study.
1
Study
Background
1.1. Urban Sanitation in Tamil Nadu: Scope of Study
1.2. Project Objectives and Scope of Work
1.3. Scope and Structure of this Document

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1. Study Background
Urban Sanitation in Tamil Nadu: Scope of Study
Urban settlements in India are grappling with the challenge of severe deficits along the “full sanitation
chain”. While public systems in India have historically hailed sewerage as the sole solution for urban
households, it is a fact that nearly two-thirds of urban households depend on on-site systems, i.e. septic
tanks and pit latrines (Census of India, 2011a). Adequate attention needs to be paid to comprehensive
management of human excreta, whether sewage or septage, if the deficits of urban sanitation in India
are to be addressed. This has been highlighted in India’s National Urban Sanitation Policy (MoUD,
2008), the draft advisory and policy on Septage Management issued by the MoUD, and in the Septage
Management Operative Guidelines issued by the Govt. of Tamil Nadu (GoTN, 2014a).
Taking due cognisance of the predominance of on-site sanitation systems in the State, the Government
of Tamil Nadu (GoTN) committed to improving urban sanitation in mission mode, and issued the
Operative Guidelines for Septage Management across the State in September, 2014. These guidelines
underlined the importance of standardizing the design and construction of septic tanks, instituting
standard operating procedures for collection and transportation of septage, and implementing possible
co-treatment options at the existing under-utilized sewage treatment plants, apart from creating new
infrastructure and systems for comprehensive septage management.
The Bill & Melinda Gates Foundation (BMGF) came forward to assist the GoTN in developing and
implementing sustainable sanitation solutions for urban Tamil Nadu. The objectives of the Tamil Nadu
Sanitation Mission include elimination of open defecation; safe containment, treatment, and disposal of
human excreta, so that public health, hygiene and dignity can be achieved for urban households and
urban areas in the state. The BMGF signed a Memorandum of Cooperation (MoC) with GoTN for the
same, in August, 2015.
With a view to scope the tasks that need to be carried out under the TN Sanitation Mission, including
identification of the institutional arrangements and capacities required, the IIHS were commissioned to
carry out a scoping exercise (study). This scoping study comprises a secondary review, supplemented
with primary data collection in select urban areas, and the conduct of consultations with identified
stakeholders; to understand better the situation of sanitation in the urban areas of the State. The State-
level analyses are supplemented with primary studies and consultations in two urban locations in the
State: a town panchayat cluster, and a municipality.
This is the Report of the Secondary Review; providing a Situational Analysis of the water and sanitation
situation in urban Tamil Nadu, situated in the context of economic growth, demographic change, natural
resource endowments and their historical utilisation character. This Study draws mainly from available
secondary literature and data from the Govt. and other public sources.
Project Objectives and Scope of Work

The scope of the Study includes:
i. Carrying out a situational analysis of urban sanitation in Tamil Nadu;

ii. Conducting an analysis of the institutional, financial and legal frameworks operating in
governance systems, for the examination of the operating frameworks within which sustainable
urban sanitation solutions will need to be explored in Tamil Nadu State
iii. Landscaping of key stakeholders, supporters, potential partners for the government’s efforts
and ongoing initiatives on urban sanitation in Tamil Nadu;
Scoping Exercise to support Sustainable Urban Sanitation in TN: Secondary Review Report | December 2015 3
iv. Facilitating engagement with relevant stakeholders, including, but not restricted to, government
officials and community groups, and providing learning therein;
v. Provide the basis for planning and organising exposure visits to successful examples of Fecal
Sludge Management (FSM) in appropriately similar contexts;
vi. Developing recommendations for high level interventions by the Technical Support Unit that is
going to be established by the Govt. of Tamil Nadu.
Scope and Structure of this Document

This Secondary Review starts with the description and analysis of the physical setting for the State of
Tamil Nadu – Location, Physiography, Climate, Temperature and Rainfall – to move to the natural
resource endowments and selected usufructs – forests, minerals and water resources. After this
contextual setting, it examines the trends in state economy to understand the shares of the primary,
secondary and tertiary sectors and the dependence on livelihoods. The first half of the document closes
with an analysis of the urbanisation trends in the State.
In the latter part of the document, the focus is on the legal and institutional framework and the
administrative structure that provides governance to urban Tamil Nadu. This is followed by a brief but
focused analysis of the State finances and the finances of the ULBs.
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Physical Setting:
Geography,
Resources and
Demography
2.1. Geography and Physiographic Features 7
2.2. Climate, Temperature and Rainfall 8
2.3. Forests 9
2.4. Mineral Resources 11
2.5. Water Resources in Tamil Nadu 13
2.6. Surface Water Resources of Tamil Nadu 14
2.7. Ground Water Resources of Tamil Nadu 17
2.8. Water Resources: Demand-Supply Estimates 20

2. Physical Setting: Geography,
Resources and Demography
This section explores the physiographic features of the State, the distribution of natural resources and
the interplay between these as evidenced in the livelihoods of the resident population and the structure
of the local economy.
Geography and Physiographic Features

The southernmost state of India, Tamil Nadu, covers an area of 130,058 skm, and is the eleventh largest
(in terms of area) in India. The bordering states are Kerala to the west, Karnataka to the north-west and
Andhra Pradesh to the north. To the east is the Bay of Bengal and the state encircles the Union Territory
of Puducherry. The southernmost tip of the Indian Peninsula is Kanyakumari which is the meeting point
of the Arabian Sea, the Bay of Bengal, and the Indian Ocean.
Figure 2.1: Physiography of Tamil Nadu – Elevation
Source: IIHS illustration of USGS DEM data, 2015
The main physiographic features in the State are the coastal plain on the eastern side stretching from
Pulicat lake (in the neighboring State of Andhra Pradesh) to Kanyakumari to a length of 1076 km forming
a major portion of the State, a central plateau region of slightly elevated plain (elevation ranging
between 150 to 300 m) studded with Javadhu, Shevaroys, Kalrayan, Pachamalai and Kollimalai hills
known as Eastern Ghats and the hilly regions of the Western Ghats are on the West.
The western, southern and the north western parts are hilly and rich in vegetation. The Western Ghats
and the Eastern Ghats meet at the Nilgiri hills. The Western Ghats traverse the entire western border
with Kerala, effectively blocking much of the rain bearing clouds of the south west monsoon from
entering the state. The south eastern parts are fertile coastal plains and the northern parts are a mix of
hills and plains. The central and the south central regions are arid plains and receive less rainfall than
the other regions. The trend of drainage is from west to east into the Bay of Bengal. The river Cauvery
rises from the Brahmagiri hill in Coorg district of Karnataka State and flows eastwards across the
peninsula into the Bay of Bengal, entering Tamil Nadu at Meetur. The Ponnaiyar River rises from Kolar
district of Karnataka State runs across Tamil Nadu and falls into the sea north of Cuddalore. The Vaigai
River originates from the Western Ghats and passes across the State and finally falls into the Bay of
Bengal, 16 km east of Ramanathapuram.
Climate, Temperature and Rainfall

The proximity of the sea influences the climate of the eastern and southern parts of the state whereas
hilly topography and the inland locations play important roles in modifying the climate over rest of the
State. The western portions of the State and the portions bordering with Kerala are fall under the climate
type: Marine, mild winter, moist all seasons, warm summer (Cfb) and the remaining part of the State
comes under the climate type: Tropical Savanna, Hot, seasonally dry (Aw). Temperatures tend to be
moderate in the coastal areas, while inland it can go to extremes in some places. Generally, the average
temperatures for most parts of the state stay between 28 0 C and 400 C in summer and between 180 C
and 260 C in the short-duration winter season. The urban centers of Chennai, Nagapatinam and Madurai
record some of the highest temperatures in summer.
Tamil Nadu has a coastline of about 910 km which accounts for 12 percent of the country's coastline.
The state coastline bore the brunt of the 2004 Indian Ocean Tsunami when it hit India, which caused
7,793 direct deaths in the state. Tamil Nadu falls mostly in a region of low seismic hazard with the
exception of the western border areas that lie in a low to moderate hazard zone; as per the 2002 Bureau
of Indian Standards (BIS) map, Tamil Nadu falls in Zones II & III. Historically, parts of this region have
experienced seismic activity in the M 5.0 range.
The State mainly receives its rainfall in three seasons, viz. South-west Monsoon (SWM), North-east
Monsoon (NEM) and Pre-monsoon season. The normal annual rainfall falling over the state is 958.4
mm. About 48 percent of the total annual average rainfall is received during NEM, while about 35
percent is received during SWM and the balance in the other seasons. The spatial distribution of the
rain fall received over Tamil Nadu is highly variable. Rainfall over coastal areas is more and decreases
to inland areas since the rainfall causing systems are forming over the Bay of Bengal and moving
towards the coast of Tamil Nadu. Also the rainfall over northern end is more than the southern locations.
Orographic impacts are believed to play an important role in the spatial distribution of rainfall. The
coastal districts receive about 65 - 75 percent of annual rainfall and interior districts get about 40-50
percent in the NEM season. The hilly regions in the west and hilly/ plain lands in north western half of
the region receive their major share from SWM.
The total surface water potential of the state is assessed as 24,160 Million cubic meters (MCM). There
are 17 major river basins in the State with 79 reservoirs and about 39,000 tanks (TWAD Board). Of the
annual water potential of 46,540 MCM, surface-flows account for about half. Most of the surface water
has already been tapped, primarily for irrigation which is the largest user. About 15 lakh hectares are
irrigated by surface water through major, medium and minor schemes. The utilisation of surface water
for irrigation was about 99 percent at the end of the eleventh plan period.
Out of 386 ground water blocks, 139 blocks (36 percent of all GW blocks) are categorized as over-
exploited, 33 blocks (nine percent of all GW blocks) as critical, 67 blocks (17 percent of all GW blocks)
as semi-critical, 136 blocks (35 percent of all GW blocks) as safe and 11 blocks (three percent of all
GW blocks) as Saline/poor quality blocks. The northeast monsoon rainfall has increased from 34
percent to 63 percent and the southwest monsoon has decreased from 48 percent to 24 percent, during
a span of 10 years. The heavy short-duration downpour (rainfall events) during the NEM, results in
severe floods; especially in the coastal districts such as Cuddalore, Nagapattinam, Thanjavur and
Thiruvarur. Urban flooding is another significant problem, the capital city Chennai and its suburban
areas are worst affected by flood every year (various media reports) because of improper drainage and
encroachment of water bodies and waterways.
Out of 13 million hectares of geographical area, about 7 million hectares of land is under cultivation.
The farming situation covers irrigated (55 percent) and rain fed / dry land (45 percent). Among all States
of India, ground water has been harnessed fully in the State of Tamil Nadu.
Forests
Tamil Nadu has an area of 27,634 skm under forest cover and tree cover which constitutes 21percent
of the geographical area of the State. The State harbours diverse vegetation in nine different forest
types, Viz., Tropical Wet Evergreen Forests, Tropical Semi Evergreen Forests, Tropical Moist
Deciduous Forests, Littoral and Swamp Forests (Mangroves), Tropical Dry Deciduous Forests, Tropical
Thorn Forests, Tropical Dry Evergreen Forests, Subtropical broad leaved hill forests and Montane wet
temperate forests. The share of forest cover in the districts decreases from west to east.
Figure 2.2: Tamil Nadu Districts with proportion (percent) of area under Forests
Source: GoTN (2014c)
The State has set aside about 3,840 skm. under a network of protected areas in 8 sanctuaries, 5
national parks and 12 bird sanctuaries. The State is also home to 3 Biosphere Reserves viz. Nilgiris
Biosphere Reserve, Gulf of Mannar Biosphere Reserve and Agasthyamalai Biosphere Reserve.
Most of the important species of mammals of India are found in the forests of the State. Among them
the endangered are Slender loris, Lion tailed macaque, Indian Pangolin, Jackal, Indian Fox, Indian Wild
dog, Sloth bear, Jungle cat, Leopard, Tiger, Mouse deer, Gaur, Blackbuck, Nilgiri Tahr, Grizzled
squirrel, Common dolphin and Dugong. The State has three Tiger Reserves under "Project Tiger". They
are Kalakad-Mundanthurai, Anamalai Wildlife Sanctuary Project Tiger and Mudumalai Tiger Reserve.
In Tamil Nadu "Project Elephant" is implemented in four Elephant Reserves (ER), namely Nilgiri ER,
Coimbatore ER, Anamalai ER and Srivilliputtur ER.
Mangroves are spread over 35 skm. in Chidambaram, Cuddalore, Nagapattinam, Ramanathapuram

and Thanjavur (Muthupet). In Cuddalore mangroves are found in Pitchavaram, located about 225 km
south of Chennai. Pitchavaram mangroves are bathed in the Vellar-Coleroon estuarine complex and
spread to an area of 1,100 Ha. The Pitchavaram area consists of 51 islets (small and large), which are
traversed by numerous creeks, gullies, channels and canals.
In Tamil Nadu coral reefs are found in Gulf of Mannar and Palk bay.
In Tamil Nadu, five species of sea turtles namely Olive Ridley, Loggerhead Turtle, Hawksbill Turtle,
Green Turtle and Leatherback Turtle have been reported. Olive Ridley nests sporadically along northern
Tamil Nadu coast and high nesting is observed along Nagapattinam and Chennai coasts. The other
turtle nesting areas are the coasts between Tranquebar and Pazhayaru, Mamallapuram and Chennai
and Point Calimere and Nagapattinam. Turtle nesting was reported during December to February and
also during April to June.
The tribal population in the country was reported at 104.5 million in 2011, with about 10 percent of the
tribal population resident in urban areas. Tamil Nadu accounts for 0.76 percent of the national
population of notified tribes (0.79 million). In the State, 16.9 percent of the tribal population is resident
in urban areas. The key demographic indicators of the tribal population in the State are detailed in the
Table (2.1) below. While the sex ratio is comparable between urban and the state, child ratio is higher
in the urban for Scheduled Tribes. The literacy rate is higher amongst both male and female in urban
areas. However, the work participation rate is lower amongst the tribal population in urban areas,
suggesting marginalisation in employment.
Table 2.1: Key Demographic Indicators for Scheduled Tribes in Tamil Nadu
Sl. No. Particulars Urban State
01 Total Population of Schedule Tribes (ST) 134,417 794,697
02 Sex Ratio (ST) 980 981
03 Child ratio (ST) 940 918
04 Male Literacy (ST) 66 % 53 %
05 Female Literacy (ST) 55 % 41 %
06 Male Work Participation Rate (ST) 56 % 60 %
07 Female Work Participation Rate (ST) 31 % 49 %

Source: Census of India, 2011
A third of the Scheduled Tribes resident in urban areas of the State are resident in the districts of
Kancheepuram, Thiruvallur, Chennai and the Nilgiris (the first two being near Chennai and the last in
the Western Ghats region); about half the urban ST population concentrated in seven districts and about
75percent of the urban St population resident in 12 of the 32 districts in the State.
Mineral Resources
Geologically, the hilly terrain and the central plain contain crystalline hard rocks such as charnockites,
granite gneiss, khondalites, leptynites, metamorphic gneisses with detached occurrences of crystalline
limestone, iron ore, quartzo-feldspathic veins and basic intrusives such as dolerites and anorthosites.
Coastal zones contain sedimentary limestones, clay, laterites, heavy mineral sands and silica sands.
The hill ranges are sporadically capped with laterites and bauxites of residual nature. Gypsum and
phosphatic nodules occur as sedimentary veins in rocks of the cretaceous age. Gypsum of secondary
replacement occurs in some of the areas adjoining the foothills of the Western Ghats. Lignite occurs as
sedimentary beds of tertiary age. Tamil Nadu is one of the leading States in the reserves of the following
minerals viz., Lignite, Garnet, Magnesite, Quartz, Feldspar, Clay, Limestone, Bauxite, Graphite and
Granite.
Table 2.2: Distribution of Mineral Resources in Tamil Nadu
Sl. Districts with Significant Estimates of

Mineral Group Industrial End-use
No. Endowments Resource
Heavy Mineral
Sands (Garnet, Kanyakumari, Tirunelveli, pigment, refractory,
Ilmenite, Thoothukkudi, ceramic
01
Rutile, Leucoxene, Ramanathapuram and industries and
Monazite and Nagapattinam nuclear industry
Zircon)
Refractory purposes
Salem, Namakkal,
02 Magnesite and in chemical 73 M Tonnes
Coimbatore and Erode
industries
Sivagangai,
03 Graphite Ramanathapuram, Export Quality 2 M Tonnes
Madurai and Tirunelveli
Cuddalore, Pudukkottai,
Clay (refractory, Refractory,
Tirunelveli, Tiruvallur,
04 stoneware and stoneware and 9 M Tonnes
Kancheepuram and
ceramic grades) ceramics
Tiruvannamalai
Dindigul, Namakkal and

Salem (Kodaikanal,
05 Bauxite Aluminium industry 26 M Tonnes
Palani, Yercaud and Kolli
Hill ranges)
Thermal power
Cuddalore (Neyveli),
plants, fertilizer,
06 Lignite Perambalur and 3,0275 M Tonnes
briquetting and
Thiruvarur
carbonisation plants
Tiruchirappalli, Salem,
Quartz and Coimbatore, Madurai,
07 Export Quality
Feldspar Tirunelveli, Erode and
Dindigul
Perambalur, Tirunelveli,
Thoothukkudi,
Virudhunagar, Salem, Cement and
08 Limestone 1,282 M Tonnes
Karur, Namakkal, chemical industries
Dindigul, Coimbatore and
Madurai
Table 2.2: Distribution of Mineral Resources in Tamil Nadu
Sl. Districts with Significant Estimates of

Mineral Group Industrial End-use
No. Endowments Resource
Kancheepuram, Vellore,
Building facades,
Villupuram, Dharmapuri,
flooring, decorative/
09 Granite Salem, Erode, 710 M cum.
ornamental uses and
Pudukkottai, Madurai, and
in monuments
Namakkal districts.
Nagapattinam, Cuddalore,
10 Silica Sands Kancheepuram and 115 M Tonnes
Tiruvallur
Source: http://www.tnmine.tn.nic.in/Mineral Reserves and Resources.htm, accessed 27/09/2015
The State government earned about ` 594 Crore from the administration of the minerals sector in FY
2010-2011, growing from ` 366 Crore in FY 2003-2004.
Water Resources in Tamil Nadu

Tamil Nadu has an area of about 130,000 skm and a population of 72 million of which slightly more
than half (52 percent) are rural. The decadal population growth has increased over the 2001-2011
period to 15.61 percent, contrary to a decreasing trend over the decades starting 1971 (The projections
made by the Registrar of Census in 2006 had anticipated the Total Fertility Rate to reach near
replacement levels by 2011). However, the decadal growth is still slower than the India average (15.61
percent in Tamil Nadu compared with about 17.70 percent nationally). Taken together with stable birth
rates, the higher population growth rate could be as much an indicator of longevity courtesy of a better
organised health delivery system, as the robust industrialisation that has triggered an influx of job-
seekers from other States. However the population density is higher at 555 persons/ skm in Tamil Nadu
compared with the national density of 368 persons/ skm. Chennai with a density of about 26,900
persons/ skm is reported to be the second densest district in the country after North-east Delhi. Tamil
Nadu is both land and, in particular, water short; compared to the rest of India. It has 6 percent of the
country's population but only 4 percent of the land area, 6 percent of the country’s estimated
replenishable groundwater resources and 3 percent of the country's surface water resources. Water
constraints in Tamil Nadu vary by basin and as influenced by the present level of irrigation development
and by urban needs.
The section examines the development of surface water and ground water resources in the state, the
stage of development across the state and the quality of flows from available data and literature in the
public domain. It then focuses on the urban sector to examine drinking water supply and household
sanitation arrangements, the infrastructure set up for different parts of the value chain and its
implications.
Surface Water Resources of Tamil Nadu
The average Run off (surplus flow) to the sea from the 17 Basins of Tamil Nadu State is computed as
177.12 TMC. The total surface water potential of the river basins of Tamil Nadu is assessed as 24,160
MCM (853 TMC). This potential comprises 17 major river basins, with 39,000 tanks (storage capacity
of 347 TMC), 79 reservoirs (storage capacity of 243 TMC), contribution from other States (of 261 TMC)
and other storage of 2 TMC.
Of the annual water potential of 46,540 MCM, surface flows, account for about half. Most of the surface
water has already been tapped, primarily for irrigation the largest user. The gross irrigated area is 2.4
million hectares, by surface water through major, medium and minor schemes. At the end of the 11th
plan (2007-2012), the potential of irrigation created was 1,528,000 Hectares, which is greater (105
percent) than the ultimate irrigation potential estimated. More than ninety nine percent (99.6 percent)
of the potential created is being utilised.
Figure 2.3: River Basins of Tamil Nadu with District Boundaries
Source: (GoTN, n.d. ), Last accessed on Oct 03 2015
Rivers of Tamil Nadu: Among the several rivers flowing through the state, Kaveri River, with 760 km of
length, is the longest among all the rivers in Tamil Nadu. It is among the sacred rivers of the country,
this river is popularly called the "Ganga of the South" or the "Dakshina Ganga". Some of the other main
rivers of Tamil Nadu can be sub-divided into the following types:
Following are the other major rivers which flow through this southernmost region of the Indian peninsula:
Bhavani River: Fed, mostly, by the southwestern monsoon, this is one of the main tributaries of the river
Kaveri.
Cheyyar River: This tributary of River Palar is a major seasonal river that flows through the district of
Tiruvannamalai.
Chittar River: The main river originates from the Courtallam Hills of the Shencottah Taluk and Tenkasi
Taluk in the district of Tirunelveli. It flows through the state along with its 5 tributaries.
Ponniyar River: Flowing across the borders in between the taluks of Villupuram and Cuddalore, it finally
drains into the Bay of Bengal.
Thamirabarani River: This River originates from the peaks named Agathimalai, Aduppukkal Mottai and
Cherumunji Mottai in the Tirunelveli district.
Vaigai River: While flowing towards the Palk Strait, it changes its course towards the south east near
Sholavandan and passes through the town of Madurai.
Gundar River: It mainly flows through the districts of Tirunelveli and Virudhunagar in Tamil Nadu.
Noyil River: This tributary of Kaveri flows through Dharapuram taluk and Palladam taluk in Erode district
and Coimbatore district respectively.
Suruli River: This originates from the Suruli Waterfall, which is among the major tourist attractions in
the Theni district.
Vaipar River: With its origination in the bordering hills of the Kerala state, the river runs through the
Virudhunagar district as well as the Theni district.
2.6.1. Quality Considerations in Select River Basins of Tamil Nadu3

The Palar River basin: The Palar originates in the Nandi Durg hills of the eastern part of Karnataka
State. The river passes through hilly stretches of Andhra Pradesh before entering Tamil Nadu near
Vaniyambadi town. The Palar river basin covers an area of about 18,300 skm. of which approximately
11,000 skm. falls within the Tamil Nadu borders The river joins the sea near Mahabalipuram. The
average annual rainfall ranges from 800 to 1,200 mm. Tanks have historically been the most important
source of irrigation within this river basin. There are no storage reservoirs constructed across this river,
but one finds a few anicuts (diversion weirs) that fill a large number of irrigation tanks – about 700 Tanks
irrigating about 61,000 Hectares and these are called system tanks. Apart from the system tanks, there
are numerous spring channels with their origin in the Palar or its tributaries, irrigating thousands of
hectares in the villages along the river. There are reported to be about 606 spring channels(Institute of
Water Studies, 2005). In many villages, the spring channels still exist, but in a degraded and silted
condition. In many of these channels, river water stopped flowing long ago, and in some, untreated
effluent is discharged by tanning industries. Paddy is the major crop followed by groundnut.
The concentration of tanning industries in the Palar basin has a history of more than a century. Leather
industries have been highly profitable as well as earners of substantial foreign exchange; and have also
generated large employment opportunities for the local population. During the eighties two significant
shifts happened – ban on the export of semi-finished leather, leading to industry shift to export of
finished leather; and the process of tanning changed from the conventional eco-friendly vegetable
3 [Most of the matter in this section has been sourced from “Living rivers, dying rivers” (Iyer, 2015)]
based process to chrome tanning – and the number of tanneries multiplied rapidly. India’s total value
of leather exports was expected to surge to Euro 5.27 Billion by 2013-2014, of which 35 percent of from
Tamil Nadu and the Palar basin(Council for Leather Exports, 2009). In the nineties, the number of “red”
industries that discharge a huge quantity of untreated effluent in the Palar basin are: 460 tanneries, 63
chemical industries and 116 other industries (ADB, 1994). Since then, the number of tanneries has
increased to a reported 800 within the basin. The Palar basin in Tamil Nadu characterized by a high
degree of urbanisation, coupled with rapid expansion of leather tanneries; has increased the demand
for water from urban populations and industry manifold. It is characterized as a “closed basin” (Venot,
Turral, Samad, & Molle, 2007).
A study carried out in the Vellore district (Mukherjee, 2010) indicate high chromium contamination and
high presence of chromate-tolerant microbial population. Tests on groundwater indicate high
concentration of total dissolved solids. Studies by TNPCB indicate a high level of chromium
contamination in land, soil and groundwater, and that the chromium waste has spread over a large area
in the Ranipet region. There are Common Effluent Treatment Plants set up, but local reports indicate
that most of these do not work effectively. Not only is the soil and water polluted, but also the air due to
the spraying of chemicals. One of the major impacts of the environmental degradation has been the
out-migration of households in the village that depended on farming.
The most vital response to the acute pollution problem came from the Vellore Citizens Welfare Forum,
which filed a PIL against the tanners in 1991. The SC bench in their decision of 1996, upheld the
precautionary principle and the polluter pays principle, and created an authority under section 3 (3) of
the EPA, 1986 to compute compensation for reversal of ecological damage and for payment to
individuals. However, the computations by the Loss of Ecology Authority (LEA) were challenged by the
tanners and the compensation whittled down by about half. The status of the Palar basin in 2013 is
reportedly much worse compared to what it was earlier. The judicial intervention, was successful
minimally in raising awareness, but not in ensuring sustainable development and reversal of ecological
damage in the basin.
The Palar River has got the rare distinction of earning the third place among the ten most polluted rivers
in the World identified by the Blacksmith Institute of New York in 1996. The criteria used for such
identification were – (i) the size of the affected population (over 3.5 million), (ii) severity of the toxin(s)
involved, (iii) impact of children’s health and development, (iv) evidence of a clear pathway of
contamination and (v) existing and reliable evidence of health impact.
The Cauvery river basin: The River Cauvery is an inter-State river which is the mainstay for both
Tamil Nadu (lower riparian State) and Karnataka (Upper riparian State). The main tributaries of the river
in Tamil Nadu are Bhavani, Amaravathi, Noyyal and Kodaganar. A large number of tanneries and
dyeing, bleaching, chemical, sugar and paper industries are in these basins. Most of these industries
use the freshwater from the river flows and use the same rivers to dump their effluents. Also, the large
number of small and medium-sized towns located all along these rivers dump their municipal sewage
and other wastes in the rivers.
Noyyal - A tributary of Cauvery: The River originates in the Western Ghats, flows through the
industrial town of Tiruppur, through a distance of 175 km., before joining the Cauvery. The region which
constitutes this river basin is traditionally a dry tract, which depended entirely on groundwater for all
purposes. Over the years, there has been a secular lowering of water table, resulting in groundwater
depletion in many parts. The introduction of modern mechanized pumping technologies has
fundamentally altered the dynamics of agricultural water supply and use. This is all occurring in an area
with marked seasonal variations in precipitation and relatively low levels of groundwater storage.
Tiruppur town and its suburbs are known for its concentration of knit-wear industries. There are over
3,000 knitting mills and over 800 dyeing and bleaching industries in this region. These not only consume
a huge quantity of fresh groundwater but also discharge them back into the Noyyal River. In 1997, the
Orathapalayam dam constructed across the Noyyal River was overflowing with effluent endangering
quite a number of villages around. Eventually, at the time when there was no appreciable flow in the
Cauvery River, the Public Works Department opened the gates of the Orathapalayam dam to let the
polluted water flow down without any prior warning to the public. The effect was devastating.
Considerable damage occurred to crops, animals, soils and groundwater. Several hundred animals
collapsed after drinking this water. The severity of the situation was such that Government was forced
to release 20,000 cusecs of water from Mettur dam with a view to reduce the pollution load in the
Cauvery even though it was a dry period.
2.6.2. Waterways of Chennai

The waterways of Chennai namely the Cooum and Adyar river and the Buckingham canal were
historically clean water ways, but they now carry sewage and industrial effluents. Repeated attempts to
clean the Chennai waterways have been a failure. There are reported to be about 750 sewage and
effluent outfalls into these waterways carrying over 700 MLD of waste water - untreated - finally mixing
with Bay of Bengal.
The Cooum, once a fresh water source is today a drainage course collecting surpluses of 75 small
tanks of a minor basin. The length of the river is about 65 km, of which 18 km, fall within the Chennai
city limits. This river once used for fishing and boat racing, has borne the adverse effects of the city's
unplanned explosion.
The Buckingham canal is reportedly the most polluted of the three major waterways in the city with
nearly 60 percent of the estimated 700 million litres of untreated sewage from the city, being let into it
daily, including by Chennai Metropolitan Water Supply and Sewerage Board.
The Adyar River, a flood carrier of Chennai is full of municipal sewage and effluent discharged by
industries. Estimated industrial pollutant loadings discharged into major rivers in Tamil Nadu was also
presented. Thus, surface water resources in the State are constrained by availability volumes and
further constrained by the degradation of existing water resources by pollution from industries and
households. This phenomenon also highlights the paucity of available information for decision-making
and planning: data that is collected very selectively - such as land details, rainfall, crop details, water
(surface and groundwater), income and consumer expenditure, assets and liabilities, livestock etc. and
data that is not collected and made available in the public domain - pollution data of river basins,
pollution levels of surface and groundwater, solid waste, bio-medical waste, urban sewage, e-waste
generation, and losses from floods and droughts (socio-economic losses and expenses incurred by
way of mitigation).
Ground Water Resources of Tamil Nadu

The utilisable groundwater recharge is 22,423 MCM. The current level of utilisation expressed as net
ground water draft of 13.558 MCM is about 60 percent of the available recharge, while 8875 MCM (40
percent) is the balance available for use. Over the last five years, the percentage of safe blocks has
declined from 35.6 percent to 25.2 percent while the semi-critical blocks have gone up by a similar
percentage. Over-exploitation has already occurred in more than a third of the blocks (35.8 percent)
while eight blocks (two percent) have turned saline.
Figure 2.4: Stage of Groundwater Development in Blocks, Tamil Nadu
2.7.1. Change in Groundwater Level

Tamil Nadu is one of the states in the country with groundwater at an advanced stage of development.
This is characterized by a significant proportion of over-exploited, critical and semi-critical blocks (62
percent of total number of blocks). The depth to groundwater also varies from district to district. Figure
2.6 represents the average depth to groundwater in the districts and the range of fluctuation (minimum
to maximum) over the year. Thirteen (42 percent) of the thirty-one districts4 have a minimum GW level
deeper than the State average (green line), while 15 of the 31 (48 percent) districts have maximum GW
levels deeper than the State average.
Figure 2.5: Change in Depth to Groundwater:

Post-Monsoon (Jan 2015) to Pre-Monsoon (May 2015)
Ramanathapuram
Kancheepuram
Tiruchirappalli
Tiruvannamali
Nagapattinam
Virudhunagar
Kanyakumari
Thoothukudi
Dharmapuri
Shivagangai
Coimbatore
Perambalur
Villupuram
Pudukottai
Thiruvallur
Krishnagiri
Tirunelveli
Thiruvarur
Cuddalore
Thanjavur
Namakkal
Tiruppur
Madurai
Dindigul
Ariyalur
Vellore
Nilgiris
Salem
Erode
Theni
Karur
-
Dept to Groundwater in Meters
(5.00)
(10.00)
(15.00)
(20.00)
(25.00)
(30.00)
District
Average Minimum Water Level (in Metres below ground level) Average Maximum Water Level (in Metres below ground level)
Source: (PWD, 2015a, 2015b, n.d.)
4
Excluding Chennai
2.7.2. Quality of Groundwater
The testing of groundwater sources is carried out under the National Rural Drinking Water Program.
Except for Villupuram and Virudhnagar, most districts report some sources (up to 5 percent) with excess
Iron, while a larger extent of contamination is reported in Dindigul and Kanniyakumari and in
Nagapattinam.
Figure 2.6: Presence of Iron, Fluoride, Nitrate and Fecal Coliform in Groundwater
Source: GoTN (2014b)
Fluoride as a contaminant is reported most in Theni district. The districts of Kanniyakumari, Pudukkotai,
Tiruchirapalli, Perambalur, Ariyarur, Tiruvarur, Cuddalore, Villupuram and Nagapatinam do not report
any excess Fluoride.
Nitrate contamination is reported highest in Tiruppur, Erode (these have significant number of “red”
category industries), Tiruvannamalai and Vellore and there is no reportage of Nitrates in Kanniyakumari,
Karur, Pudukkotai, Tirunelveli and Virudhnagar.
Theni, Dharmapuri and Krishnagiri report the highest incidence of fecal coliform in groundwater
samples, followed by Vellore, Tiruvannamalai, Madurai, Ramanathapuram and Dindigul.
Groundwater contamination is an issue in most districts. The extent of contamination varies and is
seemingly not very high for excess Iron or excess Fluoride. The issue of nitrates and fecal coliform
contamination suggests higher risk, but does not exceed 25 percent of samples.
Water Resources: Demand-Supply Estimates

Water availability is becoming a critical commodity in the State. Sectors like industries, hydro-power,
domestic, livestock and increasing environment needs are competing for the available share of water.
The demand from the various sectors as assessed by the Institute of Water Studies, Government of
Tamil Nadu is presented in the table below. The challenge is to bridge this gap by reducing the demand
or by efficient water management.
Table 2.3: Current Demand-Supply Situation for Water Resources in Tamil Nadu
Supply/Demand in Thousand Million Cubic

Sl.No. Description
Feet (TMC)
01 Total Assessed water Resources 1,587.00
02 Drinking water demand 51.40
03 Corporations 13.80
04 Municipalities 9.60
05 Town Panchayats 10.00
06 Rural 18.00
07 Irrigation demand 1,766.00
08 Industries 54.90
09 Power 4.20
10 Livestock 18.30
Total Demand 1,894.80
Gap (Demand – Availability) (307.80)
Source: http://www.twadboard.gov.in/twad/tamilnadu.aspx accessed October 8, 2015
The Water Resources Organisation prepared a State Framework Water Resource Plan of Tamil Nadu.
The projections for 2044 indicate significant increases in domestic and industrial consumption as well
as in energy production. This is anticipated to stress further the already stressed water resource
potential of the State.
3
Economy of
Tamil Nadu
3.1. Manufacturing and Industries 25
3. Economy of Tamil Nadu
Tamil Nadu has the second largest Gross Domestic Product amongst the States, after Maharashtra.
Economic growth has been following a cyclical trend with positive linear character every 4-5 year
followed by a year of lower growth. The trend in economic growth over the last ten years is shown in
Figure 3.1 below. The primary sector shows near-stagnation and even decline in some years, and
reports a growth of 50 percent (or half) over the 2005-2015 period. Manufacturing has grown steadily
over the first half of the period, but has slowed down in year-on-year growth after FY 2011, and reported
a growth of 207 percent over the 2005-2015 period. The services sector has witnessed the highest
growth during this period, and reported a growth of 235 percent over the ten year period.
Figure 3.1: Trend in State GDP over 2005 to 2015 by Primary,

Secondary and Tertiary Sectors
The sectoral composition of the state economy for the 2012-2015 period is detailed in Figure 3.2 below.
While no sub-sector within the primary sector displays any prominence during this period, registered-
manufacturing (formal), construction and allied sub-sector of transport, storage and communication
display prominent shares in the state domestic product from the Industry sector; the sub-sectors of
trade, hotels and restaurants, real estate, building ownership and other services have prominent shares
from the services sector. Thus, the state economy is typified by a nearly stagnating primary sector
(agriculture, livestock and fisheries), an Industries sector that is growing at a slow pace and a more
rapidly growing services sector. Within these, land-related economic activities, connectivity and mobility
aspects of industrial and tertiary growth and leisure seem to be enjoying continued growth (in the last
three years) and suggest a very strong urban growth focus.
Figure 3.2: Trend of Composition of State GDP over 2012 to 2015 by Constituent sub-sectors
The scale and growth of economic activity in the districts is significantly different and ten of the thirty
two districts in the state account for more than half the State Domestic Product (see Table below). The
distribution of domestic product for 2011-2012 (taken as a typical year where data is available) is
presented in Table (3.1). The category of districts with low Net Domestic Product (NDP), i.e. less than
1 percent of SDP; are about ten years behind the category of districts with a share greater than 4
percent of SDP, in terms of the scale of economy. The middle category of districts in terms of NDP are
also the ones reported to have more persons employed in the primary sector and include some of the
paddy-growing areas of the State.
Table 3.1: Classification of Districts and their share of Net Domestic Product 2011-2012
Category Total Net District

Share of
Sl.No. District(s) (District NDP as Domestic Product
State Total
Share of State) (In Lakh Rupees)
Perambalur, Ariyalur,
Thiruvarur, The Nilgiris, Theni,
01 Ramanathapuram, Less than 2 % 4,640,807 13 %
Sivagangai, Nagapatinam.
Pudukkotai, Karur, Dharmapuri
Table 3.1: Classification of Districts and their share of Net Domestic Product 2011-2012
Category Total Net District

Share of
Sl.No. District(s) (District NDP as Domestic Product
State Total
Share of State) (In Lakh Rupees)
Thiruvannamalai, Villupuram,
Thanjavur, Dindigul,
Krishnagiri, Namakkal,
02 2-4 % 11,875,389 33 %
Thoothukudi, Cuddalore,
Virudhunagar, Kanniyakumari,
Erode
Madurai, Tirunelveli, Tiruppur,

Salem, Tiruchirapalli, Vellore,
03 Greater than 4 % 19,479,853 54 %
Coimbatore, Kancheepuram,
Thiruvallur, Chennai
The share of the primary sector (agricultural sector) is significant in Ariyalur district at 33.87 percent
during 2010-11, followed by Perambalur district (30.70 percent), Nagapattinam district (24.09 percent)
and Theni district (23.19 percent). The share of secondary sector to total district income was found to
be the highest in Virudhunagar district (51.76 percent) followed by Kanniyakumari district (49.28
percent), Tiruppur district (42.22 percent), Coimbatore district (41.83 percent).
Manufacturing and Industries

The State occupies a leadership position in manufacture of diversified range of products like
Automobiles and parts, textiles, Electronic hardware, Leather products, Light and heavy Engineering &
Fabrication, etc., apart from Software development IT enabled Services (DoI, 2015). According to the
Annual Survey of Industries (ASI) for 2012-13 by Central Statistical Organisation (CSO), Government
of India, Tamil Nadu has 36,869 factories employing 1.96 million persons including 1.60 million workers
with invested capital of ` 0.29 million Crore.
The Strategic Plan for infrastructure development in Tamil Nadu in the Vision 2023 envisages
development of industrial and commercial infrastructure in two broad areas as follows:
• Industrial infrastructure covering industrial estates, SEZs- Investment of ` 150,000 crore

• Tourism projects covering entertainment complexes hotels/resorts amounting to ` 10,000
crore of investment
In the strategic plan, industrial infrastructure comprises of land required for industrial activity and the
cost of development of land to make it suitable for industrial use. It also includes the facilities required
within the industrial area. The development projects under consideration are:
a. Acquisition of 6,826 acres of land by SIPCOT for new and extension of existing industrial
estates across the state;
b. Acquisition of land by SIDCO for industrial estates across 25 locations in Tamil Nadu. The
extent of land estimated to be acquired is 2,256 acres;
c. Area development of Sriperumbudur industrial area;
d. Development of the following industrial corridors:
1) Chennai – Ranipet
2) Ranipet – Hosur
3) Madurai – Thoothukudi
4) Coimbatore – Salem
5) Chennai – Trichy
6) Coimbatore – Madurai
e. Establishment of a Petroleum, Chemical and Petrochemical Investment Region (PCPIR);
f. Establishment of an Information Technology Investment Region (ITIR);
g. Establishment of three large industrial townships; and
h. Aerospace and logistics park near the green field airport
4
People of
Tamil Nadu and
Urbanisation
4.1. Urbanization in Tamil Nadu 30
4. People of Tamil Nadu and Urbanisation
The results of the Census of 2011 indicate a rapidly urbanising Tamil Nadu. The ratio of rural to urban
population had nearly reached parity and stands, in percentage terms, at 51.6 in villages and 48.4 in
cities. Tamil Nadu’s population at the stroke of midnight of March 1, 2011, stood at 7.21 crore, including
3.61 crore men and 3.60 crore women. The population distribution in rural areas stood at 3.72 crore,
while urban population was 3.49 crore. Of the total increase of 9.7 million people in the last decade
(2001-2011), the contribution of rural areas was 2.3 million, whereas the contribution of urban areas
was 7.4 million.
Considering that population projections had indicated a movement towards near replacement levels
over the last decade (Total Fertility Rate = 2.1), the State surprised many by being the only State (apart
from Chattisgarh) to experience an increase in decadal population growth rate, from 11.7percent in
1991-2001 to 15.6percent in 2001-11. The category of child population within the age of zero to six
years constitutes 9.5percent of the state’s population, a decline from the 11percent in 2001. Thus, the
growth in population is due to a sharp rise in numbers, aged seven years and above, and study of
district-level data reveals that the most likely explanation for this population increase is in-migration of
labour, especially in districts with high industrial activity (Singh, 2011).
Figure 4.1: Total Population Growth Trend in Tamil Nadu - 1901-2011
80 122% 72 125%
Decadal Growth in Population (%)

Population (persons) in Millions
70 117% 62 120%
115% 56
60 112% 112% 48 115%
109%
50 109% 41 116% 110%
109% 115%
40 103% 34 112%
30
23 26 105%
30 19 21 22
20 100%
10 95%
- 90%
1901
1911
1931
1941
1951
1961
1981
1991
2001
1921
1971
2011
Census Year
Population in Census Year (persons) Decadal Growth Rate (%)
Source: Analysis from various Census years
The district level population data and growth trends are interesting. The district of Kancheepuram
experienced an increase in its decadal population growth rate from 19percent in 1991-2001 to
39percent 2001-11. Thiruvallur’s decadal growth rate increased from 23 percent in 1991-01 to 35
percent in the last census. These districts are next to Chennai. Coimbatore increased from 17percent
to 19percent over the inter-censal periods, while Tiruppur increased from 25 percent in 1991-2001 to
29 percent in 2001-11. These districts being major hubs of economic activity, specifically information
technologies and manufacturing, the data suggests the influx of non-Tamil persons from around the
region and even other states.
Urbanization in Tamil Nadu

Tamil Nadu stands out as well urbanised; this has been so for a long time. A relatively high proportion
of the total population is urban and the towns are well dispersed; arguably due to three factors 5:
1. The even regional spread of irrigation infrastructure (canals, wells and tanks), giving rise to
mixes of wet and dry crops based on water availability and management, and generating a
significant marketed surplus;
2. The relative absence of large-scale industry (except possibly the suburbs of Chennai) , which
means that industry has a workshop- and home-based character throughout the region; and
3. The decentralised and dispersed physical infrastructure (roads, railways and marketplaces).
While some economic activity – retailing, agricultural wholesaling and processing, Gold-Smithy and
Pawn-broking, for instance – is common to settlements throughout India, a remarkable feature of these
dispersed market towns is the degree to which their economic bases are specialised. Taking Tamil
Nadu again, for instance, the Palar Valley specialises in leather, Cheyyar in mats, Arni and
Kancheepuram in silk, Vellore and Salem in construction, Tiruchengode in drilling equipment and lorry
bodies, Salem and Bhavani in textiles, Tiruchirapalli in gems, Coimbatore in textiles and engineering,
Tiruppur in knitted cotton, Sivakasi in matches, Palladam in chewing tobacco, Annur in cooking oil,
Kangeyam in cattle, and so on.
Tamil Nadu is the most urbanised state (amongst the large states 6) in the country, with an urban
population share of 49 percent. The urban population is spatially dispersed and there are variations in
urbanisation levels across districts and regions of the state. Unlike most other states where a significant
proportion of the urban population is in and around two or three primate cities (e.g. Mumbai and Pune
in Maharashtra, Bangalore and Mysore in Karnataka), urban centres are well dispersed in Tamil Nadu.
There are corridors of urban concentrations; namely Chennai-Krishnagiri-Hosur (anticipated to account
for 43 percent of state’s urban population by 2021), Coimbatore-Erode-Salem-Krishnagiri (anticipated
to account for 19 percent of state’s urban population by 2021), the corridor of Tiruchi-Madurai-
Tirunelveli, the coastal corridor of Chennai-Puducherry7-Cuddalore-Tanjavur-Karaikudi (7 percent of
state’s urban population by 2021), and in a lesser way the corridor of Tuticorin-Nagarcoil (estimate to
account for 4 percent of state’s urban population by 2021) (Sivaramakrishnan & Singh, 2005).
5 (Rukmani, 1996)as cited in India Working: Essays on Society and Economy. Barbara Harriss White (Ed.)
6 Delhi, Goa and Mizoram have higher proportion of urban population in their state.
7 Puducherry is a separate Union Territory adjoining Tamil Nadu. The corridor characterization includes this
owing to the connectivity infrastructure.
Figure 4.2: Settlement Map of Tamil Nadu
Source: IIHS Analysis of (Census of India, 2011b)
The state has 33 districts for administrative purposes. Of this the district of Chennai is wholly urban.
Apart from Chennai, there are six districts that have urbanisation share of more than 60 percent. There
are 14 districts that display urbanisation levels less than 30 percent. The districts with lower urbanisation
levels are mostly situated on the coast and the central parts of the state. The statutory urban units
(ULBs and Cantonment Boards) exhibit a fair amount of dispersion, with significant numbers existing in
about 60 percent of districts of the state. This has been a demographic and development feature of the
state and is evidenced in the census from 2001.
The urban areas of Tamil Nadu are organized into 10 Corporations, 148 Municipalities, 561 Town
Panchayats, two Cantonment Boards, and 376 Census Towns. The distribution of urban areas across
size-class of settlements is presented in Table 4.1.
Table 4.1: Size-class Distribution of Urban Areas in Tamil Nadu
Type of Urban Area
Sl.No. Class Municipal Town Cantonment Census
Municipality Total
Corporation Panchayat Board Town
Class I
(Greater
01 10 21 - - 1 32
than
100,000)
Class II
02 (50,001 - - 74 1 - 5 80
100,000)
Class III
03 (20,001- - 52 138 1 57 248
50,000)
Class IV
04 (10,001 - - 1 287 1 117 406
20,000)
Class V
05 (5,001 - - - 125 - 171 296
10,000)
Class VI
(Less
06 - - 10 - 25 35
than
5,000)
Total 10 148 561 2 376 1097
Total* 12 124 528 - - -
Source: Census of India (2011b),(GoTN, 2014a)

*according to Operative Guidelines
5
Urban Watsan &
Environmental
Services in
Tamil Nadu
5.1. Drinking Water Supply 35
5.2. Household Access to Drinking Water Supply in Urban

36
Tamil Nadu
5.3. Household Arrangements for Sanitation in Urban

37
Tamil Nadu
5.4. Wastewater Treatment Infrastructure 38
5.5. Solid Waste Management 39

5. Urban Watsan and Environmental
Services in Tamil Nadu
Drinking Water Supply

The major source of water to urban households in Tamil Nadu is through piped network (66 percent)
(Census of India, 2011a), another 14 percent depend on untreated tap water, and nearly 16 percent
depend on ground water (through hand-pumps, tube-wells or wells). However, only 40 percent of
households have access to piped water supply within their premises.
Table 5.1 presents the per capita water supplied in different types of urban areas. The table below
illustrates that a majority of urban areas receive water supply below the Service Level Benchmarking
norm of 135 lpcd.
Table 5.1: Per Capita Water Supply in Urban Tamil Nadu

Sl. No. ULB Good Comfortable Poor Acute Total
Corporations
(Good >=110 lpcd,
01 Comfortable >=70- 5 3 3 0 11
<110 lpcd, Poor-
<70 lpcd)
Municipalities
(Good >=90 lpcd,
Comfortable >=40-
02 44 77 1 2 124
<90 lpcd, Poor-
>=20 -< 40 lpcd,
Acute <20)
Town Panchayats
(Good > 70 lpcd,
03 Comfortable >=40- 431 91 6 0 528
<70lpcd, Poor- <40
lpcd)
Total 480 171 10 2 663
Source: http://www.twadboard.gov.in/twad/urban_water.aspx, Last accessed on 9th June, 2015.
In earlier years, the city of Chennai suffered from an acute water scarcity, in particular during low rainfall
years. In early 2000, the CMWSSB supplied less than 50percent of the requirement of the city
population, that too in an irregular fashion(Ruet, Saravanan, & Zerah, 2002). Groundwater played a
crucial role in filling the gap. However, the city’s groundwater level had reached an alarming low and in
many places intrusion of seawater was reported because of over-exploitation of ground water. This has
affected the potability of groundwater in many places as indicated by a battery of indicators
(Janakarajan 2013). The CMWSSB depended heavily on transport of water from public wells and
agricultural wells located in peri-urban villages. These measures impacted the groundwater table and
socio economic life of people but also resulted in conflicts because of imbalance in the water equity
between the city and peri-urban areas. The Metro Water Board supplied water through 10000, 12000
and 20000 litre capacity tanker-trucks numbering around 6000 every day throughout the city till October
2004 in addition to the supply through the pipeline network. The water was pumped from the well fields
at Minjur, Panchetti and other places and the board hired about 125 field wells around Poondi to pump
30 million litres of water per day into Red Hills water treatment plant. This recourse to ground water for
shoring up supply was a strategy employed from the early seventies. By the middle of the last decade,
the GoTN and the city authorities had changed strategy and initiated desalinization projects (200 MLD
completed, 200 MLD under construction) to satisfy Chennai’s water requirements. Owing to the cost of
desalinization and the impact on revenues of the CMWSSB, the GoTN provides finances to plug the
revenue gap to the tune of about ` 200 Crore annually. The dependence of towns in the state on
groundwater sources is very high with a majority of them using groundwater sources or a combination
for primary drinking water supply.
Household Access to Drinking Water Supply in Urban Tamil Nadu

The access of urban households to drinking water sources (Census of India, 2011a) is provided in Table
(5.2) below. 80percent of the urban households have access to tap water supply (within premises and
out) with 66percent of these households accessing treated tap water and the remaining untreated tap
water. Within premises, the coverage is significantly lower. Only 45percent of the urban households
have access to piped water supply within premises, and 40percent of the urban households have
access to treated water, while the remaining have access to untreated water. Households with access
to piped water supply are higher in the Municipal Corporations at 63percent, followed by Municipalities
(43 percent) and then Town Panchayats (34 percent); amongst statutory urban areas. In census towns
too, 34percent of the households have access to piped water supply within premises. However, access
to treated piped water is highest in Municipal Corporations (60 percent), Municipalities (37 percent) and
then Town Panchayats (25 percent) in that order. Tubewells are the next most prevalent source of
drinking water in urban Tamil Nadu with about six percent of households using this as the primary
source. Amongst statutory urban areas, tubewells are reported to be higher in Municipalities (7 percent),
then Town Panchayats (5 percent) and Municipalities (4 percent). Census Towns and Cantonment
Boards report the highest proportion of households with tubewells (9 percent) as a primary source.
Table 5.2: Access to Drinking Water by Urban Households in Tamil Nadu

in Different Types of ULBs – 2011
Type of Proportion of Households Resident in
Sl. Access to
No. Drinking Cantonment Census Municipal Town
Municipality Total
Water Board Town Corporation Panchayat
Treated Tap
01 68.35 % 53.61 % 80.56 % 61.60 % 58.57 % 66.29 %
Water
Un-treated
02 9.94 % 21.65 % 5.93 % 15.14 % 19.94 % 14.03 %
Tap Water
Covered
03 1.82 % 2.53 % 0.48 % 1.97 % 2.24 % 1.60 %
Well
Uncovered
04 2.05 % 3.43 % 0.53 % 3.24 % 4.97 % 2.74 %
Well
05 Handpump 4.44 % 2.26 % 5.50 % 3.24 % 3.55 % 3.96 %
06 Tubewell 10.75 % 13.58 % 4.97 % 10.82 % 8.51 % 8.65 %
07 Spring 0.82 % 0.16 % 0.08 % 0.25 % 0.30 % 0.19 %
Table 5.2: Access to Drinking Water by Urban Households in Tamil Nadu
in Different Types of ULBs – 2011
Type of Proportion of Households Resident in
Sl. Access to
No. Drinking Cantonment Census Municipal Town
Municipality Total
Water Board Town Corporation Panchayat
08 River/ Canal 0.01 % 0.07 % 0.08 % 0.21 % 0.34 % 0.17 %
09 Tank/ Pond 0.02 % 0.06 % 0.04 % 0.06 % 0.18 % 0.08 %
Other
10 1.81 % 2.65 % 1.83 % 3.47 % 1.40 % 2.29 %
sources
Total Urban
11 13,275 1,296,545 3,086,749 2,418,467 2,114,068 8,929,104
Households
Source: Census of India (2011a)
16 percent of the urban households in Tamil Nadu reside in slums. 30 percent of slum households
access treated water through a piped water supply, while another three percent access untreated water.
44 percent of the urban slum households access water through piped supply, but not within the
premises, while another four percent access this away from premises. Handpumps (8 percent) and
Tubewells (6 percent) are the mostly commonly used sources for drinking water, after tap water.
Household Arrangements for Sanitation in Urban Tamil Nadu

In Urban Tamil Nadu, about 75 percent of households have toilets within their premises, 9 percent use
public toilets, and 16 percent resort to open defecation. About 66 percent of the household toilets are
reported to have water closets(Census of India, 2011a). About 27 percent of the toilets (40 percent of
those with water closets) are connected to sewer system, and 38 percent of the household toilets (40
percent of those with water closets) are connected to septic tanks (Census of India, 2011a). In Class 1
Cites, the coverage of household toilets connected to sewers is as high as 50 percent; smaller cities,
hence, have a higher prevalence of septic tanks. About 7 percent of the State’s urban households report
having improved pit latrines.
Figure 5.1: Household arrangements for urban sanitation in Tamil Nadu
Source: Census of India (2011a)
While Tamil Nadu has made substantial investments in sewerage and sewage treatment plants,
especially in larger cities, the record of treatment and safe disposal is unimpressive. In respect of
sewage treatment in cities that have sewerage systems, 1,129 MLD of sewage treatment capacity exists
with another 151 MLD under construction; however current utilisation is reported to be lower at 394
MLD (CPCB, 2013).
While on-site systems are the most predominant household arrangements across the State, there has
hitherto been limited attention paid to safe collection and treatment of human excreta from septic tanks.
Septage/fecal sludge from these on-site structures is generally emptied using vehicle mounted vacuum
tanks (cess-pool vehicle). However, limited data is available on the number and coverage of these
vehicles, as these are mostly operated by the informal sector. This is also a largely unregulated activity
that has started receiving attention only lately. The sludge collected from septic tanks is commonly
disposed into either natural storm water drainage system or a nearby surface water body in the absence
of any treatment systems. Urban Local Bodies (ULBs) on the other hand, have not recognized the full
cycle of sanitation, especially on-site installations, as something that needs their attention.
Of the households not having a latrine within premises, a significant proportion (42 percent) of these
households, reside in Town Panchayats, 25 percent in Municipalities and about 16percent in Municipal
Corporations. Census Towns account for 17 percent of the urban households without latrines. Amongst
the districts, Salem (7 percent), Coimbatore (7 percent), Tirunelveli and Virudhnagar (7 percent) and
Erode have the larger share of households without latrines.
35 percent of the households without latrines use public conveniences. The proportion of households
using public conveniences are higher in Municipalities and marginally lower in M. Corporations and
Town Panchayats; they are lowest in Census Towns. Amongst the districts, Coimbatore, Salem and
Virudhnagar have higher proportion of households reported accessing a public convenience; followed
by Chennai, Erode, Namakkal and Theni.
39 percent of the slum households do not have access to a latrine within premises. 16 percent of urban
slum households use Public conveniences, while the remaining defecate in the open. Of the slum
households with latrines, 31percent are connected to the sewer, 24percent are connected to Septic
Tanks, 3 percent to pit latrines, 1.7 percent have their night soil removed and 1.2percent have latrines
connected to other disposal systems.
The household arrangements in urban Tamil Nadu, a relatively urbanised State, are similar to national
averages (16 percent open defecation in Tamil Nadu, compared to 13 percent national average, and
almost one third of households with sewerage connections). In addition, there are considerable deficits
in the full-cycle of sanitation like in rest of urban India. In addition to nearly 16 percent of households
having to resort to open defecation, limited treatment of human excreta from urban areas, poses a
considerable public health hazard. The poor priority accorded to sanitation historically by urban
institutions at the State and city levels, is manifested in limited capacities, resources and incentives for
urban sanitation, and an inflexion point may have presented itself with the launch of the Operative
Septage Management Guidelines in 2014.
Wastewater Treatment Infrastructure

Sewage treatment facilities exist in three of the 12 Municipal Corporations and in 19 of the 124
Municipalities. There is an STP under construction in one more Municipal Corporation, in 14
Municipalities and three Town Panchayats adjacent to a Municipality. Urban Tamil Nadu has 1,129 MLD
of sewage treatment capacity with another 151 MLD under construction. The details of existing and
proposed sewage infrastructure is presented in Table (5.3) below.
Table 5.3: Existing and Proposed Infrastructure for Network-Based
Wastewater Systems in ULBs of Tamil Nadu
Municipal Town
Sl.No. Particular Municipality
Corporation Panchayat
01 Number of ULBs with STP 3 19 0
Existing Sewage Treatment Capacity

02 777.00 351.73
(MLD)
03 Number of ULBs with proposed STP 1 14 3
Proposed Sewage Treatment Capacity

04 23.85 119.33 7.74
(MLD)
05 Number of ULBs with proposed UGSS 1 15 2
Proposed Underground Sewerage

06 113.77 1,092.07 28.48
System (in km)
07 Total Number of ULBs 12 124 528
Source: GoTN (2014a) and various Government Orders
Solid Waste Management

Urban Tamil Nadu generates about 12,504 Tonnes (T) of Municipal Solid Waste (MSW) daily, of which
11,626 T/d is collected and 603 T/d is treated (CPCB, 2012). (The unsegregated municipal solid wastes
generated are collected and are either disposed in low-lying areas or water bodies or disposed along
the roadside and are set on fire. Kodungaiyur and Pallikaranai in Chennai are the standing example for
municipal solid waste dumping sites.
Table 5.4: Scenario of SWM in Municipal Corporations ( 2010)
Number of Vehicles in activities -

Population Waste Waste
Urban Local Percentage
Sl. No. 2010 ( in generation collected
Body (%)
Lakhs) (MT/day) (MT/day) Secondary &
Primary Disposal
Transportation
01 Coimbatore 9.28 650 630 96.92 4845 130

02 Madurai 9.31 450 450 100 2035 87
03 Trichy 7.52 432 415 96.06 2608 70
04 Salem 6.96 335 315 94.02 397 26
05 Tirunelveli 4.11 145 120 82.75 1484 22
06 Tiruppur 3.44 406 390 96.06 660 47
07 Erode 1.5 110 110 100 624 17
08 Vellore 1.77 85 83 97.65 299 14
09 Thoothukkudi 2.16 137 130 94.9 174 12
TOTAL 46.05 2750 2643 96.11 13126 425
Source: Banu, S.S and Kanagasabai, S. (2012)
46 percent of the urban local bodies are reported to have adequate land for treatment and disposal of
solid waste. The details of ULBs and adequacy of land available for treatment of solid waste is detailed
in Table (5.5) below.
Table 5.5: Details of availability of land for disposal (2013)

Municipal
Sl.No Details Municipality
Corporation
01 ULBs having adequate land for compost yard 57 4
ULBs having above 75% but below 100% requirement

02 8 0
of land
ULBs having above 50% but below 75% requirement
03 8 1
of land
04 ULBs having below 50% requirement of land 19 1
05 ULBs without having any land 5 0
06 ULBs reporting "NA" 28 3
Total 125 9
Source: IIHS Analysis; CMA, 2013
The GoTN established a solid waste management fund for all local bodies in 2013, by pooling an
amount of ` 250 crore. Of this, ` 150 Crore is earmarked for rural local bodies and ` 100 Crore for urban
local bodies. This annual allocation to the fund is for the use of urban local bodies, based on need. A
project sanctioning committee was also constituted for approving the projects under the Solid Waste
Management Fund under the chairmanship of Secretary of Municipal Administration and Water Supply
Department. The establishment of State Level Solid Waste Management Cell has been proposed in the
CMA/DMA for implementing different schemes for waste management.
Success stories of SWM
Nammakkal Town
Namakkal has the distinction of becoming the only zero garbage town in the country. In order to achieve
this they have practiced door to door collection, introduced night sweeping, beautified parks and burial
grounds, removed encroachments on all roads and streets, prevented garbage disposal by roadside
hotels and shops, green belt development on highways, levy charges for hotels, marriage halls,
commercial complexes and garbage generating industries, and manufacturing of vermi-compost from
organic waste. This experiment has been successful due to a holistic approach with all agencies
cooperating together under the leadership of the District Collector.
Pammal Municipality
Pammal is a third grade municipality with 21 wards and a population of approximately 100,000, located
17km from Chennai. In 1994, a local resident Ms. Mangalam Balasubramanian and a group of women
formed a Mahalir Mandram (women’s association) to address the challenge of waste Management in
Pammal. This waste was deposited in the neighborhood bins. Awareness – raising street plays were
held to educate residents about pollution and the benefits of waste management. At that point, the
Mandram began segregating the waste and making vermin compost from the biodegradable material.
The successful production of compost inspired the Sankara Eye Hospital to allocate space on a portion
of their land in Sankara Dhyana Mandapam for the Mandram’s vermi compost production. In 1995, the
Mandram registered itself as a self help group and obtained a loan, which was used to construct a vermi
composting shed. The impact of their work attracted the attention of many officials and impressed
Pammal municipality’s executive officer.
In 2004, representatives of PepsiCo visited the project and subsequently suggested that the activities
be expanded to cover a larger area. In 2005, using PepsiCo’s support, a larger shed with 108, one –
two tone capacity vermi compost tanks was constructed on 1.1 acres provided by the municipality. The
Municipality then invited Ms. Balasubramanian to expand the service to cover all 21 wards in Pammal.
The Mandram registered itself as an NGO named Exnora Green Pammal and signed a contract with
Pammal municipality.
The activities taken up included: Door to door collection of garbage from households by Green
Ambassadors (Pasumai Thuduvargal name in Tamil illustrating the dignity of Labour) segregated at
source as organic and inorganic. Conversion of organic waste into vermin compost with a brand name
“Excellent organic compost” (Exorco). The inorganic waste is separated into different categories such
as pet bottles, HDF, LDP, Laminates, Cardboard, Pet bottles are crushed into pellets. Thin carry bags
are crushed and sent to CIPET (Central Institute of Plastic Engineering Technology) Students for their
project work. Some of the water pouches and thin carry bags are recycled in a weaving centre
established by the NGO near Thirukazhukundram.
Conversion of dry leaves into briquettes. Dry leaves such as coconut leaves, garden dry leaves are
converted into briquette. Conversion of food waste, canteen waste and meat waste into Energy. At
present a demonstration unit of waste to Energy is set up producing bio gas and producing 5 KW of
electricity lighting street lights. In all such above activities the total waste materials are converted into
usable materials and provide employment opportunities to many women from downtrodden families.
Learning: Raising awareness to achieve widespread public cooperation in terms of segregation of

waste requires continuous effort and is likely to take several years Changing people’s habits is a gradual
process. Solid waste management requires money for start-up and for operation. Services cannot be
sustained from one-time grants.
The revenue earned by the sale of compost and recyclable materials and the collection of a user fee
covers less than 10percentof the operating costs. The Municipalities /local bodies by imposing a Green
Tax on all residents could assist in getting segregated materials. Collecting a user fee is not an ideal
way to generate revenue for solid waste management because payment is irregular, and collecting the
fee is a considerable burden for the service provider. Although collection of a user fee strengthens
rapport between the service provider and residents, such collection becomes a very costly task because
collecting the fee consumes an enormous amount of the service provider’s time.
The Pammal SWM experience demonstrates that successful implementation of the Government’s rules
depend upon determined local leadership, public awareness, involvement and cooperation of residents,
qualified staff, attentive human resource management, proper and ongoing financial support and
physical facilities. Together such elements can achieve major improvements in the cleanliness of
neighborhoods as well as a significant reduction of waste.
Source: Managing Trustee, Exnora Green Pammal, Chennai & Director, Sam Foundation for Eco Friendly
Neighbourhood, http://www.tnenvis.nic.in/Database/SolidWaste_1169.aspx accessed October 8, 2015
6
Legal Framework
for Urban
Water Supply
and Sanitation
6.1. State Administration Arrangements for Urban Areas 46
6.2. Devolution of Functions, Functionaries and Funds 54
6.3. Financing of Urban Sector Investments 55
6.4. State Budgets: A Review 56
6.5. Financial Situation of ULBs in Tamil Nadu 57

6. Legal Framework for Urban Water
Supply and Sanitation
The legal framework for urban governance prior to the 74th CAA comprised multiple legislations and
the administrative thinking on urban governance, influenced by the distinct histories of the city of
Madras, other municipalities and the large number of smaller towns. The Corporation of Chennai (CoC)
was governed from 1919 by the Madras Municipal Corporation Act, 1919, now known as the Chennai
City Municipal Corporation Act.
Municipal corporations formed in the 1970s and 1980s had legislations closely modeled on the Madras
Municipal Corporation Act, namely Madurai (The Madurai City Municipal Corporation Act 1971) and
Coimbatore (The Coimbatore City Municipal Corporation Act, 1981). Aside from the Municipal
Corporations, larger towns and cities in Tamil Nadu were under the jurisdiction of the District
Municipalities Act 1920.
The governance of smaller towns – Town Panchayats - evolved within a legal framework shared with
villages, i.e. the Tamil Nadu Panchayats Act, 1958. The state amended existing laws in 1994 and
carried out a re-assignment of the rural-urban for enacting conformity to the 73rd and 74th CAA at the
national level. The Tamil Nadu Panchayats Act of 1958 was amended in 1994 to constitute the
conformity legislation for the 73rd Amendment, dealing only with rural areas, while Town Panchayats
were re-designated as transitional areas from rural to urban and hence Urban Local Bodies, and brought
under the purview of the Tamil Nadu District Municipalities Act, 1920.
Amendments were made to the District Municipalities Act to bring it into conformity with the 74th
Amendment, with a separate chapter on Town Panchayats inserted into the Act, and the administrative
section - Directorate of Town Panchayats - brought under the administrative control of the Municipal
Administration and Water Supply Department (MAWSD) at the Secretariat.
Subsequently, 561 Town Panchayats were reclassified as Special Village Panchayats in 2004 and
brought under the purview of the Rural Development Department. Then in 2006, the Special Village
Panchayats were reconstituted as Town Panchayats and brought under the administrative ambit of the
MAWSD. All sections of the Tamil Nadu District Municipalities Act except sections8 5, 7 12-c, 13-b, 43,
68, 77-aa and 77-b, were made applicable to the Town Panchayats by a government order in 2014.
The various Municipal Corporation Acts (by this time numbering six) were amended suitably to provide
for the various provisions of the 74th CAA, essentially pertaining to ULB structure, as was the Tamil
Nadu District Municipalities Act, 1920, and also for defining the roles of the state election commission
(SEC) and state finance commission (SFC). The SEC and the SFC were created in 1994. Elections to
Local Bodies were held after a long break in October 1996 and subsequently in 2001, 2006 and
2011(TNSEC, n.d.). The First SFC submitted its report for the period FY 1998-2002, the Second SFC
constituted in 2001 submitted its report for the period FY 2003-2007, the Third SFC constituted in 2006
for the period FY 2008-2012 and the Fourth SFC for FY 2013-2017(GoTN, 2011).
In addition to the two Acts governing ULBs in the state, there are a number of legislations that govern
specific functions of urban governance. Many of these, enacted mostly in the seventies provided for the
creation of parastatal bodies at the state level to deliver services and/or take responsibility for municipal
functions such as water and sanitation (e.g. the Tamil Nadu Water and Drainage Act 1971 and the
8 These section pertain to term of elected body, constitution of council, election procedures for council heads,
delegation of authority to contract, and terms for government officers and teachers lent to institutions managed
by the elected body.
Chennai Metropolitan Water Supply and Drainage Act, 1977), housing and slum improvement (e.g. the
Tamil Nadu Housing Board Act 1961, and the Tamil Nadu Slum Clearance Act, 1971), and urban
planning and land-use regulation (the Town and Country Planning Act, 1971).
The Town and Country Planning Act, 1971, replaced the Madras Town Planning (MTP) Act, 1920, which
had applied only to urban areas. The new act covered an extended jurisdiction of rural as well as urban
areas across the state. It provides for the notification of areas, constitution of planning and development
authorities like the Chennai Metropolitan Development Authority (CMDA), preparation and
implementation of Master Plans and Detailed Development Plan and enforcement of Development
Control Regulations.
State Administration Arrangements for Urban Areas

The State administration in Tamil Nadu manages the urban governance, infrastructure and
development domain through two key departments, namely the Municipal Administration and Water
Supply Department (MAWSD) and the Housing and Urban Development Department (HUDD). The
MAWSD is headed by an officer of the rank of Principal Secretary, while the HUDD is headed by an
officer of the rank of Secretary. Both these key departments have a number of departments within, with
clear delineation of roles. Each of these departments is part of different ministerial portfolios and hence
ministers. While these departments function independently, it is reported that the HUDD delegates its
powers of building approval (Ground plus one level) to ULBs, which are in turn administered by
MAWSD.
6.1.1. The Department of Municipal Administration and Water Supply (DMAWS)

The MAWSD was formed in 1984, after bifurcation from the Rural Development and Local
Administration Department of the Secretariat. The Department of Municipal Administration and Water
Supply is responsible for coordinating the activities of various organizations and agencies in the
planning, execution and maintenance of measures to provide improved infrastructure and services in
the urban areas of the State, and the provision of drinking water supply in rural and urban areas of the
state. The Commissionerate of Municipal Administration and the Directorate of Town Panchayats are
sub-departments of this Department in achieving the objectives set forth by the Government. MAWSD
also has administrative control of undertakings/bodies such as the Corporation of Chennai (CoC), the
Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) and the Tamil Nadu Water
Supply and Drainage Board (TWAD Board), the last being responsible for the provision of water supply
and underground sewerage facilities in the state apart from Chennai. MAWSD also administers the New
Tiruppur Area Development Corporation Limited (NTADCL), which caters to the drinking water supply
and industrial water needs of Tiruppur and nearby areas.
Apart from these, the Tamil Nadu Urban Development Fund (TNUDF) managed by the Tamil Nadu
Urban Infrastructure and Financial Services Limited (TNUIFSL), and the Tamil Nadu Urban Finance
and Infrastructure Development Corporation Limited (TNUFIDCO) are the two urban financial
intermediaries – reported pioneers and trendsetters in the field of urban finance in India – that guide the
Urban Local Bodies in assessing the financial viability of projects and assist in the development of urban
infrastructure. These agencies also coordinate in channelizing funds from Government of India, external
agencies and financial markets for the development of urban infrastructure. The expertise of institutions
like the TNUIFSL and the TNUFIDCO are utilized to provide necessary consultancy based support
services to the urban local bodies to improve their technical capability for implementing bigger and more
complex projects. Under the MAWSD administration is also, the Tamil Nadu Water Investment
Company (TNWIC), a joint venture of the GoTN and the ILFS.
The business of MAWSD include: List out as provided in the Rules of Business
• Administrative support to elections relating to Municipal Corporations and Municipalities; Fixing
and regulating Fees (Licence fees levied by Municipalities and Municipal Corporations in respect
of Public Health matters);
• General Administration and all matters relating to local Boards not specifically assigned to other
Departments;
• Directing the presentment of audit reports for Municipal Councils and Municipal Corporations;
• Providing permissions for development works in Municipalities and Municipal Corporations under
Five Year Plans;
• Administrative initiatives for local self-government in urban bodies;
• Regulation of markets;
• Constitution, abolition and dissolution and general administration and all matters relating to urban
local bodies not specifically assigned to other departments;
• Framing the statutory rules of the public services with which this department is concerned, their
revision and amendments;
• Sanction of prosecution of Government servants;
• Works and buildings under the administrative control of this department;
• Administration of various taxes including on advertisements levied by Municipalities and Municipal
Corporations, animals, lands and buildings, professions, trades, employment;
• Administration of pilgrim tax;
• Administration of tolls;
• Administration of license fee levied on public health matters by ULBs;
• Administration the Places of Public Resort Act;
• Administration of undertakings like TWAD, CMWSSB and administration of zoological gardens.
In the administration of the MAWSD, the Secretary in-charge is assisted by a Special Secretary, a Joint
Secretary and two Deputy Secretaries exercising control over 26 sections dealing with specific subjects
and each headed by Under Secretaries overseeing the section staff.
6.1.2. Institutions Administered by MAWSD

The MAWSD coordinates and manages the work of eight urban agencies with the following core
responsibilities:
Figure 6.1: Institutions within MAWSD
Source: Adapted from DMAWS (2015)
Commissionerate/Directorate of Municipal Administration (CMA/DMA): The overall administration
of the nine Municipal Corporations (except Chennai) and 125 Municipalities under the administrative
control of the Commissioner of Municipal Administration is the responsibility of this Department. This
Department has multifarious functions in terms of providing basic infrastructure in these ULBs, conduct
of elections to these local bodies and administering the staff in the 108 ULBs and in directing the
discharge of 15 obligatory functions by the local bodies.
Directorate of Town Panchayats (DTP): Tamil Nadu is reported to be the first State to introduce a
(transitional) classification in the status of urban local bodies, viz. Town Panchayat, for those transitional
local bodies between Rural and Urban Local Bodies. The Town Panchayats normally are places of
importance such as Division / Taluk headquarters, Tourist Spots, Pilgrim Centers and Commercial/
Industrial towns. This has necessitated special attention to the civic needs of the Town Panchayats.
These Town Panchayats were conferred with individual administrative powers and an enhanced staff
pattern.
Town Panchayats (TPs) in Tamil Nadu were categorized as rural entities until 1996, and thus under the
administrative control of Directorate of Rural Development. In 1981, the Government constituted a
separate Directorate of Town Panchayats (DTP), which remained under the Rural Development
Department as TPs were still governed, along with Village Panchayats, by the Tamil Nadu Panchayats
Act 1958.
Following the re-designation of TPs as urban local bodies (ULBs) after the state legislation in conformity
with the 74th Amendment and the transfer of TPs to the legal jurisdiction of the District Municipalities
Act 1920, the Directorate of Town Panchayats was brought under the Department of MAWS in 1996.
The DTP is headed by a Director, who is also the Inspector of Town Panchayats, and is assisted by 16
Assistant Directors of Town Panchayats based in 16 zonal offices all over the state. However, in Tamil
Nadu, District Collectors of the respective districts are “entrusted with the responsibility of supervising
the affairs of these local bodies” (Vijayabaskar et al., 2011).
Corporation of Chennai (CoC): Under the Chennai City Municipal Corporation Act, 1919, the CoC is
administered directly by the MAWSD of the Government of Tamil Nadu. The city stretches along the
Coromandel Coast and extends inland. The CoC covers an area of about 175 skm. The estimated
present population (Census of India, 2011b) of this administrative unit is 4.65 Million. The CoC is
headed by the Mayor with an executive headed by the Municipal Commissioner (usually from the Indian
Administrative Service).
Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB): The CMWSSB was
constituted in 1978 for exclusively attending to the growing needs of and for planned development and
appropriate regulation of water supply and sewerage services in the Chennai Metropolitan Area with
particular reference to the protection of public health and for all matters connected therewith or
incidental thereto. The service limits were confined to Chennai City limits initially, but have progressively
expanded to cover the whole metropolitan area (Chennai Metropolitan Area). The Minister in charge of
MAWSD is the Chairperson of the CMWSSB and an administrative officer (usually from the IAS) is the
Managing Director.
Tamil Nadu Water Supply and Drainage Board (TWAD): The TWAD is the main implementing
agency for all water supply and sewerage schemes outside the Chennai metropolitan area. TWAD
works in coordination with the district and State Level Government Departments of the state, and the
national ministries - the Government of India's Ministry of Rural Development, Drinking Water Supply,
Urban Development, Housing and Urban Poverty Alleviation, Ministry of Water Resources, National
River Conservation Directorate, Central Ground Water Board, Non-Government Organisations (NGOs),
and significant academic institutions like, Anna University, Gandhigram Rural Institute, etc. within the
state, to implement the water supply and sewerage schemes effectively in the districts of Tamil Nadu.
The administrative head of the MAWSD is the chairperson of the TWAD, while an administrative officer
(usually from the IAS) is the Managing Director.
TNUDF and TNUFIDCO: The Tamil Nadu Urban Development Fund (TNUDF) was established in 1996,
as a trust under The Indian Trust Act 1882, for the development of urban infrastructure in the state of
Tamil Nadu. TNUDF was formed by conversion of the Municipal Urban Development Fund (MUDF),
with contribution from Government of Tamil Nadu along with all India financial institutions viz., ICICI
Bank Limited (formerly ICICI Ltd), Housing Development Finance Corporation Limited (HDFC) and
Infrastructure Leasing and Financial Services Limited (ILFS). The TNUDF is the first public-private
partnership providing long term debt for civic infrastructure on a non-guarantee mode. The TNUDF is
managed by a Corporate Trustee viz., Tamil Nadu Urban Infrastructure Trustee Company Limited
(TNUITCL) that periodically reviews the goals, lending policies and procedures. The Tamil Nadu Urban
Infrastructure Financial Services Limited (TNUIFSL) is the Fund Manager of TNUDF. The TNUIFSL is
a Public Limited Company registered under the provisions of the Companies Act, 1956 in 1996, to carry
on the business activities in respect of management of trust funds and other funds and to act as
managers, consultants, advisors, administrators, attorneys, agents, or representatives of or for any
funds and to provide consultancy, financial and investment advisory services. TNUIFSL has an
authorized share capital of ` 2.00 Crore, and a paid-up share capital of ` 1.00 Crore. The TNUIFSL, a
Public-Private Partnership in the urban sector, is promoted by Government of Tamil Nadu (49percent
of equity) with equity participation from banks and financial institutions (51percent of equity) that are
partners in the management of TNUDF.
The TNUIFSL manages a number of grants under the TNUDF with the total available fund size of `
1714.15 Crore. It also manages other funds set up by GoTN targeted at infrastructure development in
urban areas. As part of the Tamil Nadu Urban Infrastructure Project (TNUIP) assisted by Japan
International Co-operation Agency (JICA), a grant fund (JBIC GF-I) with an allocation of ` 130.97 Crore
was initiated in 2008 and is managed by TNUIFSL. This fund can be accessed by ULBs as capital
grants for infrastructure projects that benefit the low-income population. Till March 2014, ` 125.40 Crore
has been released by GoTN to the JBIC Grant Fund-I. The funds have been committed for seven water
supply projects amounting to `173.34 crores (including exchange rate variation) under JBIC Grand Fund
- I. A sum of `98.54 crores has been disbursed to ULBs as capital grant up to March 2014.
TNUIFSL also manages a non-lapsable fund in the name of Tamil Nadu Urban Road Infrastructure
Fund (TURIF) created in 2008. The TURIF aims to develop the urban road infrastructure in ULBs in a
phased manner with due care to maintain these.
The Water and Sanitation Pooled Fund (WSPF), is a Trust wholly owned by Government, created in
the year 2002 to mobilize resources from the capital market and to finance urban infrastructure projects.
This Fund has been functioning on no-profit no-loss basis. The GoTN has designated WSPF as the
State Pooled Finance Entity under Pooled Finance Development Fund Scheme and authorized it to
operate according to the guidelines issued by the Government of India. The WSPF is governed by a
committee with members from GoTN and operated by TNUIFSL. Till March 2014, WSPF had raised a
sum of ` 222.30 Crore.
The Chennai Mega City Development Mission (CMCDM) was launched in January 2012 with
TNUIFSL as the nodal agency and the Chennai Mega City Development Fund (CMCDF) created in
March 2012, to assist Corporation of Chennai (CoC) and Chennai Metropolitan Water Supply and
Sewerage Board (CMWSSB) in the implementation of various urban infrastructure and basic services
project like roads, storm water drainage, lighting, water supply and sanitation in Chennai and its
Suburban areas. The CMCDF is managed by Tamil Nadu Urban Infrastructure Financial Services
Limited (TNUIFSL) based on the guidelines and procedures prescribed by the GoTN. The Corpus for
the fund is provided through budgetary provision annually by GoTN. Till, March 2014, the GoTN has
released ` 1,000 Crore to CMCDF and a sum of ` 648.77 crores has been disbursed to CoC and
CMWSSB.
The Tamil Nadu Urban Finance and Infrastructure Development Corporation Ltd. (TNUFIDCO)
was incorporated under the Companies Act, 1956 in 1990 with equity stakes from GoTN (97 percent),
local bodies (2.6 percent) and HUDCO (0.6 percent). The main object of the corporation is provision of
financial assistance and guidance to Local Bodies, Corporations, Boards, Authorities and parastatal
agencies for their development schemes. It is also a Nodal Agency to implement Government
programs/schemes in the State. In addition to this, the TUFIDCO extends financial assistance from its
own source to the local bodies and parastatal agencies for various infrastructure development schemes.
The Chairperson and Managing Director of TNUFIDCO is an officer of the administrative service from
MAWSD, on special duty. As on March 31st 2014, the TUFIDCO has authorised capital of ` 50 Crore,
paid-up equity of ` 32 Crore, reserves of ` 125.96 Crore, and borrowings of ` 620.96 Crore. Over the
2011-2014 period, the TUFIDCO expended ` 32.27 Crore annually and earned an annual income of `
48.91 Crore.
TUFIDCO functioned in earlier years as a nodal agency for urban schemes sponsored by the
Government of India, such as the low-cost sanitation scheme, the Nehru Rozgar Yojana, the Mega
Cities Project and the IDSMT. It became the nodal agency for the JNNURM, and subsequently for state
schemes focused on urban infrastructure.
Tamil Nadu Urban Infrastructure Development and Renewal Fund (TNUIDRF): The Government of
Tamil Nadu created the Tamil Nadu Urban Infrastructure Development and Renewal Fund in 2006,
operated by the Chairman and Managing Director, TUFIDCO. The Fund consists of funds garnered
from various centrally sponsored schemes for urban areas. TUFIDCO is also the Fund Manager in
respect of the Metropolitan Infrastructure Development Fund (MIDF), and the funds under the Integrated
Urban Development Mission (IUDM), a state government initiative. TUFIDCO had formulated an
infrastructure funding scheme namely, TUFIDCO’s Infrastructure Funding Scheme (TIFS). This fund
has been raised from share capital, reserves and surplus of TUFIDCO, loan from Banks and deposits
from the public. Financial assistance has been extended to implement various infrastructure projects
such as roads, storm water drains, water supply, underground sewerage, bus stands, shopping
complexes etc., by ULBs, Boards, statutory authorities and other government agencies.
Jawaharlal Nehru National Urban Renewal Mission Implementation Arrangements
Arrangements for JNNURM/UIDSSMT: The main role of TUFIDCO as a nodal agency for the
JNNURM was to route funds from the central and governments to ULBs. The State Level Sanction
Committee (SLSC) meetings are convened by TUFIDCO and chaired by the Minister in-charge.
The committee comprises all relevant department heads (MAWSD, DMA, CMWSSB, CMA,
TNSCB, TNHB, TWAD, CMDA, etc.). TUFIDCO provided oversight and coordinated all measures
needed to obtain sanction for projects and secured and channelized the funds to ULBs. It also
managed the loan component, maintained a revolving fund derived from it, and distributed this
among ULBs. A Project Management Unit was established within TUFIDCO with six functional
specialists as approved by the Government of India for the UIG. The same PMU functions for
UIDSSMT.
For projects involving solid waste management, and for construction of roads and (storm water)
drains - activities that municipalities managed themselves for some time - ULBs prepared the DPRs
themselves in consultation with the DMA. For water and sanitation schemes, the CMWSSB
prepared the DPRs for Chennai and the ULBs in its metropolitan area. The TWAD prepared DPRs
for water schemes in some municipalities and towns in the state, and also for some sewerage
schemes, but several towns and municipalities that had acquired capacity opted to independently
prepare DPRs for water and underground drainage, sometimes with the assistance of consultants.
These DPRs were then routed via the DMA to TUFIDCO, which conducted a preliminary appraisal
based on the JNNURM/UIDSSMT rules. TUFIDCO carried out the technical appraisal for the
UIDSSMT projects. It is reported that TUFIDCO constituted its own in-house appraisal committee,
comprising experts in the field, to prepare a preliminary report to place before the SLSC in some of
the JNNURM cases.
UIDSSMT projects were sanctioned directly by the SLSC after technical review, while JNNURM
projects were forwarded to the GOI’s Central Sanctioning and Monitoring Committee (CSMC).
Technical appraisal of projects under the UIG component of the JNNURM, and the UIDSSMT, was
done by the Central Public Health and Environmental Engineering Organization (CPHEEO).
Arrangements for Basic Services for Urban Poor (BSUP): The DMA set up a Project
Management Unit (PMU) and five Project Implementation Units (PIU), one in the TN Slum
Clearance Board, and one each in the JNNURM cities - Chennai, Madurai and Coimbatore - to
assist the ULBs in implementing the BSUP. Another PIU was set up in the DTP. Each PIU
comprised five members each with expertise in technical, financial, information system, social work
as well as research and training. The PIUs were set up through calls for open tender, to provide
technical support to develop plans, reports, improve accounting practices, and in the
implementation of projects. PIUs were also tasked with conducting surveys when needed.
Monitoring: Apart from the in-house monitoring conducted by TUFIDCO, a third party Independent
Review and Monitoring Agency (IRMA) was set up as recommended by the GOI for the UIG and
UIDSSMT. The contract for the IRMA in Tamil Nadu was awarded to M/s Mahendra Consulting
Engineers, Ltd., from a list of agencies compiled by the GoI.
Source:Vijayabaskar et al. (2011)
Tamil Nadu Water Investment Company Limited (TNWIC): Tamil Nadu Water Investment Company
Limited was formed as a Special Purpose Vehicle in 2000 under the Companies Act, 1956 by IL&FS
Ltd and the GoTN as an investment Company to implement an Integrated Water Supply and Sewage
Project and to promote infrastructure development projects jointly with government institutions and local
bodies. TWIC’s expertise is reported to cover the range of services in urban water and sewerage
systems, desalination, industrial effluent management and recycling. TWIC offers Project
Implementation and Consultancy services, O&M inputs during EPC and O&M services. The Principal
Secretary, MAWSD, Govt. of Tamil Nadu is the Chairperson.
New Tiruppur Area Development Corporation Limited (NTADCL): The NTADCL was promoted by
the Government of Tamil Nadu (GoTN) and Infrastructure Leasing and Financial Services Ltd (IL&FS)
as an SPV to implement the Tiruppur Area Development Program (TADP), in 1995.
As part of the TADP, NTADCL has been mandated, through a concession by GoTN, to develop,
construct, operate and maintain a 185 million litre per day capacity water supply project and sewerage
facility for about 60percent population in Tiruppur Municipality at a total cost of about 1023 Crore. The
project also involves providing low cost sanitation facilities for slum areas in Tiruppur.
6.1.3. Finances Managed by the Department

Table (6.1) provides a summary of the state budget voted on account for the MAWSD demand. The
Commissionerate of Municipal Administration accounts for about two-third of the demand, followed by
the DTP accounting for 16 percent. This also indicates that the state finances were not anticipated for
the TNUDF.
Table 6.1: Budget of the Department of Municipal Administration and
Water Supply for 2014-15 (in Million)
Sl.
Head of Account - Department/ Agency Revenue Capital Loan Total
No.
01 Secretariat 78 - 5 83
Commissionerate of Municipal
02 44,925 19,175 1,258 65,358
Administration
03 Directorate of Town Panchayats 14,758 1,421 - 16,180
Tamil Nadu Water Supply and Drainage

04 5 9,830 227 10,062
Board
Chennai Metropolitan Water Supply and

05 2,153 2,756 - 4,909
Sewerage Board
Tamil Nadu Urban Finance &

06 Infrastructure Development Corporation 5,186 - - 5,186
Ltd
Total 67,105 33,182 1,490 101,777
Source: Policy Note, MAWSD 2015-16
6.1.4. Housing and Urban Development Department (HUDD)

Taking cognizance of the priority for housing among the basic needs of the population, the Government
of Tamil Nadu has set for itself the goal, of providing “a house for each family” and taken effective steps
framing policies and programs for the development of housing sector both in the urban and rural areas
of Tamil Nadu. The sizeable share of urban population (49 percent) and the rapid pace of urbanization
over the past two decades put a significant onus of delivering this goal, on the urban sector. The
Housing and Urban Development Department is the nodal department taking this forward, coordinating
the efforts of agencies like the Tamil Nadu Housing Board, the Tamil Nadu Co-operative Housing
Federation and the urban-focused Tamil Nadu Slum Clearance Board. Apart from these developmental
efforts, the HUDD also administers the Directorate of Town and Country Planning (DTCP) and the
Chennai Metropolitan Development Authority, two urban planning and regulatory institutions.
In the administration of HUDD, the Secretary in-charge is assisted by four Deputy Secretaries exercising
control over 23 sections dealing with specific subjects and each headed by Under Secretaries
overseeing the section staff.
The HUDD coordinates and manages the work of five agencies (urban and rural) with the following core
responsibilities:
Figure 6.2: Institutions within HUDD
Source: Manual under RTI, HUDD, GoTN (n.d)
Planning and Development Regulatory Agencies: The land planning and development regulatory
bodies in Tamil Nadu are the Directorate of Town and Country Planning (DTCP) and Chennai
Metropolitan Development Authority (CMDA). The area covered under the Directorate of Town and
Country Planning is 1,28,869 skm. and the area under CMDA is 1,189 skm. Both the regulatory bodies
work towards the harmonious development of the State as per planning norms and parameters, by
land use regulations through the preparation and implementation of Master Plans and Detailed
Development Plans. The Plans take into consideration the need for the provision of effective road
network fixing alignments of bye pass roads, ring roads etc. The regulatory bodies also take up several
initiatives to improve traffic and transportation by creation and upgradation of infrastructural facilities.
The Directorate of Town and Country Planning (DTCP) is functioning under Town and Country
Planning Act, 1971. This Act provides for the preparation of Regional Plan, Master Plan, Detailed
Development Plan and constitution of Regional Planning Authorities, Local Planning Authorities and
New Town Development Authorities. This department is having its head office at Chennai and 12
Regional offices, 27 Composite Local Planning Authorities and 8 New Town Development authorities
are functioning under its control. Regional Offices, Local Planning authorities, New town development
authorities prepare the Regional Plan, Master Plan, Detailed Development Plan and extend grant to
local bodies under various programmes, the department also gives technical advice to local bodies in
the preparation of layouts and building plans, and functions as an appellate authority in case of appeal
preferred by local bodies against refusal of Planning Permission.
The Chennai Metropolitan Development Authority (CMDA) has planning and regulatory jurisdiction
over the Chennai Metropolitan Area (CMA) covering 1,189 skm. which includes Chennai Corporation,
7 Municipalities, 12 Town Panchayats and 179 Villages in 10 Panchayat Unions. As per the Census
2011, the population of CMA is about nine Million.
Tamil Nadu Co-operative Housing Federation (TNCHF): The Tamil Nadu Co-operative Housing
Federation was registered in 1959 as an apex body, with the area of operation of entire State. Out of
860 Cooperative Housing Societies functioning in the State, 816 Cooperative Housing Societies
including 619 urban societies are affiliated to the federation. The resources for housing finance for the
Tamil Nadu Cooperative Housing Federation flow from state government, LIC, Housing and Urban
Development Corporation (HUDCO), National Housing Bank (NHB), Housing Development Finance
Corporation (HDFC), Commercial and Cooperative Banks against government guarantee.
Tamil Nadu Slum Clearance Board (TNSCB): The Tamil Nadu Slum Clearance Board has been
implementing various housing, slum development and rehabilitation and resettlement programs to
improve the living conditions of the urban slum families in Tamil Nadu. TNSCB area of work was in
Chennai initially and after 1984 has been extended to other urban areas of Tamil Nadu. Till February
2013, the TNSCB has benefited 1.31 lakh families in 504 slums, expending ` 2,315.73 crore for various
capital works.
Tamil Nadu Housing Board (TNHB): The Tamil Nadu Housing Board was established in 1961 with an
objective of providing “Housing for all” under Tamil Nadu Housing Board Act, 1961 to cater to the
housing needs of the growing population of Chennai city and to mitigate the hardship in getting houses
or house sites, owing to urbanization. During 1961-2011, TNHB had completed 402,231 units (houses
/ flats / plots).
6.1.5. Finances Managed by the Department

The Table (6.2) provides a summary of the state budget voted on account for the HUDD demand. The
Commissionerate of Town and Country Planning demands make up more than half the department
budget, while the Tamil Nadu Slum Clearance Board accounts for 25 percent.
Table 6.2: Budget of the Department of Housing and Urban Development 2014-15 (in Million)
Sl.
Head of Account – Department / Agency Revenue Capital Loan Total
No
01 Secretariat 68 - 1,700 1,768
02 Commissionerate of Town and Country Planning 8,894 5 - 8,899
03 Cooperative Housing Societies 176 - 0 176
04 Chennai Metropolitan Development Authority 0 238 - 238
05 Tamil Nadu Housing Board 155 0 - 155
06 Tamil Nadu Slum Clearance Board 1,377 2,380 - 3,757
Total 10,670 2,623 1,700 14,994
Source: HUDD (2015)
6.1.6. The Hindu Religious and Charitable Endowments Department

There are 38,481 temples, 56 Mutts, 57 endowments, 41 educational institutions, 34 social welfare
institutions and 8 health centers in the state under the control of Hindu Religious and Charitable
Endowments Department. The major festivals in the temples give rise to large numbers of floating
population and requiring services like shelter, food, water and sanitation. Currently, the arrangement
for the major festivals are coordinated with the temple authorities, the HRCE department officers and
local representatives by the district administration.
Devolution of Functions, Functionaries and Funds

The devolution of the 3Fs in urban Tamil Nadu exhibits a correlation with the different categories of
ULBs in the state. Seventeen (barring fire services) of the eighteen functions listed in the twelfth
schedule (of the constitution) have been devolved to the Municipal Councils and Municipal
Corporations. As of March 2010, functionaries are yet to be transferred to ULBs for carrying out the
devolved functions. Also, in the Corporation of Chennai, only thirteen functions have been devolved
with the functions of water supply and sewerage being managed by the CMWSSB. In the case of Town
Panchayats, twelve of the eighteen functions have been reportedly devolved to the ULB.
The creation and operation of different trust funds and fund-management agencies (like TNUIFSL and
TNUFIDCO) in the domain of urban infrastructure services and development, have also meant that
some of the fund flows (viz. compensation for entertainment tax, Education Fund (EF), funds earmarked
for operation and maintenance) arising from devolution initiatives have tended to aggregate within these
trust/program funds and been channeled to ULB on the advice and technical advisories provided by
fund-management agencies. In a way, this seeks to optimize the requirements of functionaries in ULBs
for carrying out the functions, by addressing capital expenditure planning and management
requirements through services offered by fund-management agencies and operational expenditure
planning and management through fund-manager advisory and delegated management or out-
sourcing.
Financing of Urban Sector Investments

There are primarily four sources of capital (investment) related flows to the urban sector in Tamil Nadu:
1) State urban development schemes;

2) Central urban programs (as noted earlier);
3) Multilateral / bilateral funded programs; and
4) Investment by ULBs from surpluses generated.
Since its recent introduction by GoTN, the Integrated Urban Development Mission (IUDM) has been the
most significant source of capital financing for ULBs in TN, followed by GoI and multilateral funded
urban development programs. Overall, capital expenditure in the urban sector has ramped up at a
compound annual growth rate of 20percent. Nevertheless, capital financing in the urban sector in TN,
which is in the region of US$500-US$700 million per annum (World Bank, 2015), remains a small
fraction of the investment needs and needs to be scaled up. The aggregate revenue surplus of ULBs
in TN was more than ` 500 Crore during the last two years (World Bank, 2015) . There is substantial
capacity to access the market for infrastructure investments by leveraging the revenue surplus. As per
the debt position and performance analysis of ULBs in Tamil Nadu, the outstanding debt of the 10
municipal corporations and 125 municipalities is ` 945 crore. Based on existing norms and based on
financial projections, TN ULBs can absorb loans estimated at `8,968 crores in the next ten years (MCs
borrowing capacity is estimated at `5,802 crores, and that of municipalities is estimated at `3,166 crores)
if they deploy about 50percent of the revenue surplus year on year.
Table 6.3: Overall financial scenarios of ULBs in Tamil Nadu 10 MCs and Municipalities
(Rupees in Crore)
Sl. No. Description 2009-10 2010-11 2011-12 2012-13 CAGR
01 Opening balance 333 1,400 2,032
02 Revenue Income 2,648 3,207 3,712 4,370 18percent
Revenue
03 2,306 2,924 2,910 3,806 18percent
Expenditure
04 Revenue surplus 343 282 802 563
05 Capital Income 1,510 2,650 1,481 2,137 12percent
Capital
06 1,520 1,400 2,032 2710 21percent
Expenditure
Table 6.3: Overall financial scenarios of ULBs in Tamil Nadu 10 MCs and Municipalities
(Rupees in Crore)
Sl. No. Description 2009-10 2010-11 2011-12 2012-13 CAGR
07 Closing balance 333 1,400 2,032 2,023
Source: World Bank (2015)
State Budgets: A Review

Tamil Nadu presents a study in contrasts. On overall social development indicators, particularly relating
to primary education and health, it is one of the best performing States in the country, which would tend
to support the subsidies and social spending approach of the government.
At a gross level, too, the fiscal numbers are not bad. The fiscal deficit is estimated to be 2.89 percent
of Gross State Domestic Product (GSDP) as against the norm of 3 percent and the Debt-GSDP ratio
19.23 percent, which is well below the 25 percent cap recommended by the Finance Commission. But
these numbers, given the slowdown in tax revenues and the sharp deceleration in investments, are
likely to be unsustainable in the long term.
The budgetary allocations and disbursements are examined for the period FY 2011 to FY 2014, based
on available data. The Consolidated Fund, Contingency Fund and the Public Account together indicated
a deficit during FY 2011 and FY 2013, whereas these resulted in a surplus during FY 2012 and FY
2014. The economic survey indicated that budgetary transactions have turned the corner during this
period and the fiscal consolidation is largely revenue-led.
The Revenue account displayed a sizable deficit (` 2,728.70 Crore) in FY 2011, however subsequent
years have seen a Revenue surplus, signaling a fiscal correction during the period. The Revenue
receipts have increased over the FY 2011-2014 period, and gradually also as a share of GSDP
(11.6percent in FY 2011 to 13.7percent by FY 2014). The increase has been primarily due to the growth
in tax revenue. More than four-fifths of the State’s Revenue receipts are from tax revenue. The share
of Central Taxes and grants-in-aid are dependent on GoI performance and the directions of the
Thirteenth Finance Commission (during this period) and reportedly decreased over the period. The
State’s share in Central taxes was on the decline from 18.6 percent in FY 2011 to 16.5 percent by FY
2014, and the Grants-in-aid also showed a decrease from FY 2011 to FY 2014.
Of the State’s own-tax revenue, a significant portion of the revenue was generated through Taxes on
sales, trade, etc. (State VAT, General Sales Tax on Petroleum goods, IMFL and Beer being the major
revenue items) and state excise (mostly Indian and Foreign Liquors and other intoxicants), which
accounted for 76-77 percent. Other revenue earners were Taxes on vehicles, stamp duty and
registration fees, and taxes on goods and passengers, which showed an increasing trend over the
period. However, the rate of growth of State’s own tax revenue started showing a decrease, and does
not augur well for the future.
The key issues in the State budgets over the period under consideration (FY 2011-2014) can be
summarised as follows:
a. The estimates made in the budget – higher receipts and lower expenditure – have necessitated
revision in later years.
a) Tamil Nadu’s Own Tax Revenue — what it raises by way of taxes locally — was scaled
down from ` 101,557 Crore to ` 85,772.71 crore as per the revised estimates for 2014-
2015.
b. Announcements (and schemes) made under Rule 110 have been funded through revised
estimates or the contingency fund.
c. In an almost ` 11 lakh crore economy, the allocated expenditure of about ` 5,300 Crore towards
distribution of colour televisions, laptops and kitchen appliances were to fulfil the ruling party’s
election promises.
d. The State budget has started to move into deficit on the revenue side, compared to the situation
of a revenue surplus budget as late as FY 2011-12.
e. The State government planned to spend 56 percent of its own revenues — and over 41 percent
of its total revenues, which include Central transfers and grants — on subsidies and benefits
promised in the election manifesto.
f. At ` 59,185 crore, the outlay on such items dwarfs the ` 27,213 Crore capital outlay budgeted
for the FY 2015-16 fiscal. This capital outlay too is optimistic, as in the past, actual capital
expense in 2014-15, at ` 23,809 Crore, was almost 10 percent shy of the projection made in
the medium-term fiscal plan.
g. The first tariff hike after seven years was effected in 2012-13, after the State-owned power
generation and distribution utility TANGEDCO had accumulated losses of a staggering ₹59,000
crore. Despite a State-led support plan leading to TANGEDCO’s restructuring, and the State
government absorbing most of the losses and half its restructured loans; financial support of `
13,586 crore was provided for the power sector in the FY 2015-16 budget, of which
TANGEDCO alone will get ` 11,748 crore. The bite of the power sector on State finances is
thus a continuing phenomenon. Over the past three years, the Tamil Nadu government has
spent a significant amount on power subsidy and its generation/distribution utility. Although the
huge demand-supply mismatch which existed two years ago has been more or less bridged,
this has come at a cost. Continued financial support to TANGEDCO is necessitated as well as
subsidy support for the lowest consumption slabs in the domestic consumption sector.
Financial Situation of ULBs in Tamil Nadu

This section is based on the analysis of the Fourth State Finance Commission, which submitted its
report 2011. The Fourth SFC recommendations are for the period FY 2012-2017. The section focuses
on the financial situation of the ULBs in Tamil Nadu. The Own income for ULBs in Tamil Nadu comprises
of:
1. Property Tax
2. Vacant Land Tax
3. Advertisement Tax, and
4. Non-Tax revenue
Property Tax: Over the period FY 2006 to FY 2010, Property Tax makes up about 50-54percent of the
own income of Municipal Corporations. The collection performance of Municipal Corporations reported
improvement over the same period in both current demand and arrear demand with Municipal
Corporations collecting about 80 percent of current demand and 55 percent of the arrears by FY 2010.
Over the years, current demand shows annual increases, while arrear demand has decreased.
However, the levels of arrear demand were still very high and pointed to the need for attention on the
collection effort. In Municipalities, Property Tax made up about 37-44 percent of the own income.
Collection performance was lower than in the Municipal Corporations, going up to 74 percent for the
current demand and 35 percent of the arrears by FY 2010. The trend of increased current demand over
the period and decreasing arrear demand was also reported. In Town Panchayats, Property Tax makes
up about 23-31 percent of the own income. Collection performance was good going up to 81 percent
for the current demand and 41 percent of the arrear demand by FY 2010.
While Property tax revision is scheduled every five years and is required to be 25 percent; the aggregate
increase in Municipal corporations was lower in FY 2009, on account of the non-revision in the CoC.
The non-revision in the CoC also led to income foregone by CMWSSB, as the sewerage tax (a part of
the property tax) is supposed to be passed to the utility by the CoC. The self-assessment method was
implemented in CoC in 1993 and in other Municipalities by 1998. However, the FSFC reported that
existence of under-assessments and non-assessments in most of the ULBs. The FSFC highlighted the
absence of a system for the enumeration of property tax assessees annually; and the dependence of
ULBs solely on monthly revision lists from the bill collectors without effective maintenance of check
registers by the wings of the revenue department and the Town and Country Planning Department,
absence of field visits by bill collectors and lack of inspection of bill collector submissions by the
executive authorities. There is no system adopted in ULBs to furnish a report about the cases of
unauthorized construction, additional construction made from the Town Planning Wing to Taxation
Wing. This coordination is now sought to be effected through a centralized web-based application under
development. The guidelines issued by the state government for the last revision in 2008, also
prescribed a ceiling on the revision fixing this at 25percent for residential buildings, 100percent for
industrial 150percent for commercial buildings, thus effectively reducing the opportunity for ULBs to
enhance their revenue.
Despite the issue of instructions, there has been no progress on the levy and collection of service
charges on Central Government properties, by the ULBs. The buildings used for educational purpose
including hostels are exempt from property tax. Thus, even self-financing educational institutions that
collect large fee and donations (compared to government institutions) do not come in the property tax
net.
The FSFC reported that the introduction of GIS for property level mapping and applications on a pilot
basis in cities of Coimbatore, Madurai and Tiruchirapalli Corporations, and the Municipalities of
Rajapalayam and Gobichettypalayam.
Profession Tax: This provides about 11-14 percent of the own income of Municipal corporations over
the FY 2006-2010 period. The collection performance in Municipal Corporations has increased
marginally for current demand to 97 percent in FY 2010, while arrear collections have improved from
21 percent in FY 2006 to about 40 percent in FY 2010. Profession Tax makes up about 7-8 percent of
the own income of Municipalities. In Municipalities, current demand collection has increased from 85
percent in FY 2006 to 89 percent in FY 2010, while collection of arrears is lagging at 19-22 percent over
the same period. In Town Panchayats, 94 percent of current demand is collected, on average over the
past five years. The percentage of arrear demand increased from 32percent to 60percent over the
period of five years. Profession Tax makes up about 9-11percent of the own income of Town
Panchayats.
Vacant Land Tax (VLT): The VLT is levied on plinth area basis with a minimum and maximum value
per unit area (square feet). This change was effected in 2009 from the earlier percentage of capital
value method. Since there is no systemic protocol followed by ULBs for listing out vacant lands within
the ULBs limit and assessing the tax promptly, the collection performance in this regard is moderate.
ULBs do not track the registration details of land parcels on a regular basis with data from the
registration department for levying VLT. Instead, when an owner approaches the ULB for building
permission, the VLT gets levied. This affects the predictability of this source of income.
VLT accounts for about 2 percent of the own income of Municipal Corporations and about 3 percent of
the own income for Municipalities. In Municipal corporations, current demand collection decreased from
54 percent in FY 2006 to 45 percent in FY 2010, while collection of arrears followed a similar trend
decreasing from 52-42 percent over the same period. Municipalities have a poorer record with collection
of current demand trending between 6-10percent and collection of arrears trending between 1-3 percent
over FY 2006-2010.
Advertisement Tax: In 2011, the District Collector was responsible for the issue of license to erect
hoardings taking into account the size of the hoardings, the road width and consent from the land
owners as per the Advertisement Tax Act/Rules. These powers were transferred to the District
Collectors in 2003, as per Section.285-B of the Tamil Nadu District Municipalities Act 1920, and the
District administration was ordered to transfer 75 percent tax proceeds to the ULBs. The hoarding rules
were further amended during 2008 to give effect to the transfer of 100 percent tax proceeds of ULBs.
The income receipts reported by the ULBs were nil or meager.
Non-Tax Revenue (NTR): The non-tax revenue income of ULBs comprise of fees from trade licenses,
building permissions, parking spaces, bus stops, development charges, road-cutting restoration
charges, and tolls; library cess; income from properties and investments; revenue earned from water
supply, sewerage services and other items.
The NTR makes up about 30-36 percent of the own income of municipal corporations and has an
increasing trend over the FY 2006-2010 period averaging an annual growth (simple) of nine percent.
Fee from Building permissions (10 percent), income from properties (11 percent), revenue collection
from water supply (20 percent) and others (41 percent) formed the major portion of NTR for Municipal
Corporations in FY 2010.
In the case of Municipalities, the NTR made up 46-54percent of the own income over FY 2006-2010,
and had a decreasing trend from FY 2008. Library cess (9 percent), income from properties (21
percent), revenue collection from water supply (25 percent) and others (24 percent) formed the major
portion of NTR for Municipalities in FY 2010.
For Town Panchayats, the NTR made up 57-67 percent of the own income over the FY 2006-2010
period, with a decreasing trend from FY 2007. Building License fee (18 percent), income from properties
(19 percent), revenue collection from water supply (33 percent) and others (18 percent) formed the
major portion of NTR for Town Panchayats in FY 2010.
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World Bank. (2015). Project Appraisal Document on a proposed loan in the amount of US$400 Million
to India for a Tamil Nadu Sustainable Urban Development Project.
Indian Institute for Human Settlements
Bangalore City Campus
No. 197/36, 2nd Main
Road Sadashiva Nagar
Bangalore 560 080. India
Scoping Exercise to support Sustainable UrbanTSanitation in TN: Secondary
+91 80 6760 6666 Review Report | December 2015 64
www.iihs.co.in

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Scoping Exercise to

Editing: Word Lab, IIHS, Bengaluru

Production: Shaheena Manoj, Krishnapriyaa P., Govardhan Seshachalam

Team Leader: Kavita Wankhade

Project Director: Somnath Sen

Under the following terms:

Figure E.2: Institutions within MAWSD .................................................................................................E8

Figure 2.1: Physiography of Tamil Nadu – Elevation .............................................................................. 7

Figure 2.4: Stage of Groundwater Development in Blocks, Tamil Nadu .............................................. 18

Figure 2.5: Change in Depth to Groundwater: ...................................................................................... 18

Figure 3.1:Trend in State GDP over 2005 to 2015 by Primary, ............................................................ 23

Figure 4.2: Settlement Map of Tamil Nadu ........................................................................................... 31

Figure 6.1: Institutions within MAWSD.................................................................................................. 47

Figure 6.2: Institutions within HUDD ..................................................................................................... 53

Table E.2: Size-Class Distribution of Urban Areas in Tamil Nadu .......................................................E6

Table 2.2: Distribution of Mineral Resources in Tamil Nadu ................................................................. 12

Table 4.1: Size-class Distribution of Urban Areas in Tamil Nadu ......................................................... 32

Table 5.3: Existing and Proposed Infrastructure for Network-Based .................................................... 39

Table 5.4: Scenario of SWM in Municipal Corporations ( 2010) ........................................................... 39

Table 5.5: Details of availability of land for disposal (2013) .................................................................. 40

Table 6.1: Budget of the Department of Municipal Administration and ................................................ 52

E1.2. Physiography, Climate, Rainfall E3

E1.3. Water Resources E3

E1.4. Tamil Nadu Economy and Social Development E4

E1.5. Urbanisation in Tamil Nadu E5

E1.6. Household Sanitation and Drinking Water

E1.7. Wastewater Collection and Treatment in Urban

E1.8. Institutional Arrangements for Urban Sanitation

E1.9. Key Issues in Sanitation and Water in Urban

Physiography, Climate, Rainfall

Tamil Nadu Economy and Social Development

Perambalur, Ariyalur, Thiruvarur, The Nilgiris,

Thiruvannamalai, Villupuram, Thanjavur,

Madurai, Tirunelveli, Tiruppur, Salem,

Source: IIHS Analysis of CSO (2015)

Urbanisation in Tamil Nadu

Table E.2: Size-Class Distribution of Urban Areas in Tamil Nadu

Total* 12 124 528 - - -

Source: Census 2011, Operative Guidelines, GoTN, 2014;

Household Sanitation and Drinking Water Supply in Urban Tamil Nadu

Wastewater Collection and Treatment in Urban Tamil Nadu

Institutional Arrangements for Urban Sanitation and Water Supply

Figure E.2: Institutions within MAWSD

Source: Adapted from DMAWS (2015)

1.2. Project Objectives and Scope of Work

1.3. Scope and Structure of this Document

Project Objectives and Scope of Work

i. Carrying out a situational analysis of urban sanitation in Tamil Nadu;

Scope and Structure of this Document

2.2. Climate, Temperature and Rainfall 8

2.4. Mineral Resources 11

2.5. Water Resources in Tamil Nadu 13

2.6. Surface Water Resources of Tamil Nadu 14

2.7. Ground Water Resources of Tamil Nadu 17

2.8. Water Resources: Demand-Supply Estimates 20

Geography and Physiographic Features

Figure 2.1: Physiography of Tamil Nadu – Elevation

Source: IIHS illustration of USGS DEM data, 2015

Climate, Temperature and Rainfall