City Corporate & Business Plan - Municipal

Chapter ñ 14 Final Report: Ambur Municipality
Summary of Borrowing and Investment Capacity
Borrowing Capacity -
Investment Capacity (BC/0.6) -
Investment Requirement Rs. 22167 lacs
Sustainable Investment Capacity % - IC / IR -ve
At an aggregate level, assuming loans to be equivalent to 6% of investment,
sustainable investment capacity works out to Nil.
14.10 SCENARIO III ñ ESTIMATION OF BORROWING AND INVESTMENT
CAPACITY WITHOUT METUR CWSS.
In Scenario III, we carried out the exercise of arriving at the Investment and
Borrowing Capacity of Ambur Municipality without Metur CWSS project. In this
scenario it is assumed that the entire capital cost and O&M of Metur CWSS would
be supported by the Government. Thus both the capital cost and O&M cost would
be received as 100% Grant by the Municipality.
In such a scenario, the Investment and Borrowing Capacity works out as below :
Summary of Borrowing and Investment Capacity
Borrowing Capacity -
Investment Capacity (BC/0.6) -
Investment Requirement Rs. 22167 lacs
Sustainable Investment Capacity % - IC / IR -ve
It may be observed that the investment capacity continues to be Nil even if the
entire O&M cost of Metur CWSS is fully supported by the Government. Thus it can be
inferred that the Municipality is not in a position to bear the operation &
maintenance expenses and interest cost of major projects like water supply
improvements and underground sewerage resulting in negative investment
capacity.
14.11 KEY INDICATOR OF SCENARIO II (FULL PROJECT SCENARIO WITH METUR
CWSS).
The key Indictors of the Municipality based on the financial projections works out as
below :
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