City Corporate & Business Plan - Municipal

6. BORROWING AND INVESTMENT CAPACITY
The borrowing and investment capacities of the town are arrived considering the
revenue income and expenditure under the sustainable scenario, after implementation
of the mandatory reforms proposed in this report.
The investment capacity for the sustainable scenario assuming entire capital and O&M
of Mettur CWSS is as grant, the following is summed up as below:
Description
Summary of Borrowing and Investment Capacity
Base case
Scenario 1
Sustainable
Scenario 2
Sustainable
Scenario 3
No project With Mettur Without Mettur
Borrowing Capacity Rs.1024.76 lacs -ve Rs. 46.61 lacs
Investment Capacity Rs.4099.05 lacs -ve Rs. 1165.16 lacs
Investment Requirement - Rs. 22167.00 lacs Rs. 22167.00 lacs
Sustainable Investment
Capacity % - IC / IR
- -ve -ve
The investment capacity of Ambur Municipality on ëAs is Where Basisí works out to
Rs. 4099 lacs.
The investment capacity of Ambur Municipality works to Nil in case of Scenario II
(With Mettur CWSS project) and Nil in case of Scenario III (Without Mettur CWSS
project).
Thus it can be inferred that Ambur Municipalityís financial position is weak and is
not in a position to undertake major projects like water supply improvements and
underground Sewerage system by way of borrowings on account of high
operation & maintenance expenses and interest cost.
Based on the above, it can be concluded that the Municipality based on its
financial position can undertake only smaller projects identified in the CCP as
given below :
Projects Identified for Implementation based on financial position
S.N. Particulars Total Priority
Means of
Finance
A Physical Infrastructure Facilities L : G : O
I Water Supply
a)
Improvements to Water Supply & Water
Treatment 1591.00 A 60:30:10
V Roads
a) BT & CC Roads - Improvements 136.00 A&B 60:30:10
b) BT & CC Roads - New Roads 120.00 C 60:30:10
VI Bus Stand
a) Bus stand Improvement 12.00 B 0:50:50
VII Street Lights
a) Proposed new lights 91.00 B 100% ULB
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5