City Corporate Plan - Municipal

Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL) 

Final Report 

Conversion of City Corporate Plan to Business Plan for 

Mayiladuthurai municipality 

June 2007 

ICRA Management Consulting Services Limited

Conversion of CCP to BP - Mayiladuthurai Municipality 

Table of Contents 

1. Introduction ___________________________________________________________ 1 

1.1 Background to the study ____________________________________________________ 1 

1.2 Scope of work ___________________________________________________________ 1 

1.3 IMaCS approach to the study ________________________________________________ 1 

1.4 Structure of the report _____________________________________________________ 2 

2. Mayiladuthurai - a brief profile ___________________________________________ 3 

2.1 Location and connectivity __________________________________________________ 3 

2.2 Social and demographic characteristics ________________________________________ 3 

2.3 Economic Development ____________________________________________________ 4 

2.4 Land use management _____________________________________________________ 5 

2.5 Strategy for development ___________________________________________________ 5 

3. Review of operating performance __________________________________________ 7 

3.1 Water Supply ____________________________________________________________ 7 

3.2 Sanitation _______________________________________________________________ 8 

3.3 Storm water drains ________________________________________________________ 8 

3.4 Solid Waste Management___________________________________________________ 9 

3.5 Roads __________________________________________________________________ 9 

3.6 Street lights ____________________________________________________________ 10 

3.7 Bus stands _____________________________________________________________ 10 

3.8 Capital Investment Plan ___________________________________________________ 10 

4. Analysis of financial performance ________________________________________ 12 

4.1 Income and Expenditure summary of MyM ____________________________________ 12 

4.2 Revenue streams of ULB in Tamil Nadu ______________________________________ 12 

4.3 Revenues ______________________________________________________________ 13 

4.4 Analysis of Costs ________________________________________________________ 17 

5. Potential areas for improvement _________________________________________ 20 

5.1 Public private partnerships (PPP) ____________________________________________ 20 

5.2 Potential for revenue enhancement___________________________________________ 20 

5.3 Measures for cost management _____________________________________________ 23 

5.4 Other measures / interventions ______________________________________________ 24 

6. Business plan projections and investment capacity of MyM ___________________ 25 

6.1 Financial and Operating Plan – time horizon and scenarios ________________________ 25 

6.2 Basis and assumptions ____________________________________________________ 25 

6.3 Revenues ______________________________________________________________ 25 

6.4 Financial projections _____________________________________________________ 29 

6.5 Key results _____________________________________________________________ 30


List of Exhibits 

Exhibit 1.1 IMaCS approach to the study ............................................................................................................... 1 

Exhibit 2.1 Population trend................................................................................................................................... 3 

Exhibit 2.2 Land-use - 1996 and 2011 (proposed) ................................................................................................. 5 

Exhibit 3.1 Water supply ........................................................................................................................................ 7 

Exhibit 3.3 Sanitation facilities – ............................................................................................................................ 8 

Exhibit 3.4 Storm water drain network ................................................................................................................... 9 

Exhibit 3.5 Solid Waste Management - current status ............................................................................................ 9 

Exhibit 3.6 Road network ....................................................................................................................................... 9 

Exhibit 3.7 Existing Street Lighting Facilities ...................................................................................................... 10 

Exhibit 3.8 MyM - Felt needs (2006-15) ............................................................................................................... 11 

Exhibit 4.1 Income and Expenditure of MyM - Last five years ............................................................................. 12 

Exhibit 4.2 Revenue streams - ULBs in Tamil Nadu............................................................................................. 13 

Exhibit 4.3 Revenue trend ..................................................................................................................................... 13 

Exhibit 4.4 Property tax - analysis of key revenue drivers ................................................................................... 14 

Exhibit 4.5 Property Tax - breakup of assessees ................................................................................................. 15 

Exhibit 4.6 Professional Tax - revenue drivers .................................................................................................... 15 

Exhibit 4.7 Professional Tax – assessee break up ................................................................................................ 15 

Exhibit 4.8 Water charges - revenue drivers ........................................................................................................ 16 

Exhibit 4.9 Water charges - category wise connections and tariff ....................................................................... 16 

Exhibit 4.10 Costs - FY 2001 and FY 2004 .......................................................................................................... 17 

Exhibit 4.11 Power costs - Water & Sewerage and Street Lights ......................................................................... 18 

Exhibit 4.12 Loan Statement ................................................................................................................................. 18 

Exhibit 5.1 Key issues and suggested measures ................................................................................................... 21 

Exhibit 6.1 Assumptions for other income ............................................................................................................ 27 

Exhibit 6.2 Expenditure ........................................................................................................................................ 27 

Exhibit 6.3 Assumptions - Assets .......................................................................................................................... 28 

Exhibit 6.4: Loan Statement as on 30.09.2005 (Rs in lakhs) ................................................................................ 28 

Exhibit 6.5 New loans ........................................................................................................................................... 29 

Exhibit 6.6 Other Liabilities ................................................................................................................................. 29 

Exhibit 6.8 Income and Expenditure projections .................................................................................................. 30 

Exhibit 6.9 Summary of key results ....................................................................................................................... 30


List of abbreviations 

BOT Build –Operate –Transfer 

CAGR Cumulative Annual Growth Rate 

CIP Capital Investment Program 

CCP City Corporate Plan 

FOP Financial and Operating Plan 

GLR Ground Level Reservoir 

IMaCS ICRA Management Consulting Services 

LPCD Litres per capita per day 

MyM Mayiladuthurai municipality 

MSW Municipal Solid Waste 

NRCP National River Conservation Program 

OHT Over Head Tanks 

PPP Public Private Partnerships 

STP Sewerage Treatment Plant 

SWM Solid Waste Management 

TNUDF Tamil Nadu Urban Development Fund 

TNUDP Tamil Nadu Urban Development Program 

TNUIFSL Tamil Nadu Urban Infrastructure Financial Services Limited 

UGD Under Ground Drainage


Executive Summary 

The Tamil Nadu Urban Infrastructure Financial Services (TNUIFSL) mandated ICRA Management 

Consulting Services (IMaCS) for conversion of City Corporate Plan (CCP) of Mayiladuthurai 

Municipality (MYM) into a Business Plan. The CCP for Mayiladuthurai was prepared in 2002, under 

the Tamil Nadu Urban Development Project - II (TNUDP-II) to develop vision, strategies and tasks to 

be carried out by MYM. Subsequently, MyM has prepared a Vision Plan, identifying various projects 

that it plans to undertake during 2004-09. The objective of this study is to enable effective 

implementation of projects envisaged in its CCP and Vision Plan through preparation of this report on 

conversion of the City Corporate Plan to a Business Plan. 

City profile and growth potential 

The population of Mayiladuthurai was 84,505 in 2001, 

implying a growth of 9.29 % over the population of 76,837 

in 1991. The population growth has slowed down during 

the last couple of decades, after double digit growth in the 

previous decades. 

As per Census 2001, the slum population in Mayiladuthurai was 13% of the population. However, the 

municipal data shows an increase in slum population and this is a major concern area for the 

municipal corporation. As per the Vision Plan of MyM, there were 26 slums with a total slum 

population of 16,434. Of these 23 slums have been provided with amenities. Mayiladuthurai is an 

industrially backward town and there is no major industry in this town. 

Being a temple town (the Mayuranathar Temple attracts pilgrims from other places), Mayiladuthurai a 

tourist centre. It is also strategically located in close proximity to the famous nine Navagraha temples. 

A number of important tourist places including Poompuhar, Mayuram, Tanquebar and Therazendur 

are in close proximity to the town. Since Mayiladuthurai has a good road and rail system, it acts as a 

halting junction for pilgrimages. The CCP points out that there is good scope for exploiting tourist 

potential. The CCP observes the need for initiatives for economic development and outlines following 

strategies for development. 

• Provision of food processing centre for fruit and milk products 

• Improvement of agro-processing industries around the town 

• Improvement of linkages of the town to other urban centres 

Parameter Details 

Population (2001) 84505 

Decadal Growth (1991-2001) 9.3% 

No. of Wards 36 

Sex Ratio 1012 

Literacy rate – 2001 80% 

• Provision of better facilities including lodging and boarding facilities for tourists. 

Additional areas that emerged based on consultation with Chairperson and select ward members on 

potential economic activities for the town include the need to create employment intensive investment 

including rice milling and tourism development. It was also suggested that the municipality along 

with the Tamil Nadu Slum Clearance Board should identify vacant/acquirable land areas within the 

municipal areas to create land parcels for industrial development and slum rehabilitation.

Municipal Services - Status assessment, gaps and actions being taken 

Exhibit 1 presents a summary of service levels and status with respect to select indicators in Water 

Supply, Sanitation, Transportation, Street lights and Solid Waste Management. 


Exhibit 1 - Status of Municipal services 

Sl. no Parameter / Indicator Value Issues and Gaps 

A. Water Supply 

1 Total Water Supply (MLD) 7.5 • Demand – Supply – MyM’s supply of 7.5 MLD 

2 Water Connections - nos. ~ 6300 corresponds to 90 LPCD which is in line with 

3 Public Fountains - nos. ~ 180 

• 

municipal norms. 

Pumping equipment requires upgrade from 120 

4 Daily Per Capita Supply (LPCD) 90 

kVA to 180 KVA. Additional borewells are also 

5 Storage Capacity / Daily Supply (%) 63% required to augment capacity. 

6 Pipe length / Road Length (%) 100% 

• Scope for adding water connections – Water 

7 Water connections / properties (%) 37% 

connections account for only about 37 % of the 

number of properties assessed and indicate the 

scope for adding more connections. 

• Poor collection efficiency - Current collection 

efficiency was only 65 % in FY 2005 and is a 

major cause for concern. 

• Other issues - Uneven distribution and low 

pressure supply complaints prevail in select 

wards in the town. 

8 UGD network (Yes/No/In progress) In 

B. Sanitation 

progress 

9 Households with septic tanks ~ 12000 

10 Number of Public conveniences 31 

11 Length of Storm drains (km) 43 

12 Est. access to sanitation (%) 85% 

13 Storm Drains - % of road length 10% 

C. Roads, Transportation and Street Lights 

• MyM is currently implementing an Underground 

sewerage system with assistance under NRCP. 

About 31 km of additional areas uncovered 

under the initial scheme has been identified to 

be covered at an outlay of Rs. 4 crore. 

• Storm water drains are provided only in 

approximately 10 % of the total road length 

within MyM limits and require significant 

improvement 

14 Total Length of Roads 107 • MyM maintains a road network of nearly 87.5 

15 Total number of Street Lights ~ 3100 km of which surfaced roads (both B.T. and CC) 

16 BT + CC roads / Road length (%) 93% 

constitute 87 %. In addition, nearly 20 km of 

highway roads traverses the MyM area. The 

17 Road length per Street Light (m) 28 m 

road network requires significant upgradation in 

view of the ongoing UGD scheme. 

• Nearly 76 % of the lights are tube lights and 24 

% are sodium vapour lamps. Average spacing 

between the lights (~ 28 m) is in line with the 

municipal norm of 30m 

• MyM proposes to develop a new Class A bus 

stand at Thennamara salai at an outlay of Rs. 

6.5 crore


D. Solid Waste Management 

18 Total Waste Generation (MT) 38 • MyM is in the process of implementing a project 

19 Collection - % of waste generated 92% at an outlay of Rs. 53 lakh to improve its solid 

20 Compost yard area -available 4.62 

waste management handling infrastructure 

21 Compost yard - required (Acres) 8.8 

22 Compost Yard - Gap - Acres (4.15) 

Analysis of financial performance 

Exhibit 2 provides a summary of the financials of MYM, along with a) an analysis of the growth and 

b) change in composition of various revenue and expenditure heads. Key highlights are summarised 

below: 

• A 10 % growth in operating surplus and a 8 % CAGR in revenue and by keeping costs in check. 

Tax income has grown at a CAGR of 5 % over the last five years in spite of no revision in 

Average Rental Value (ARV) since 1998. 

User charges have grown by a healthy 30 %, aided by increased in collection of water charges 

and other fee income including sewerage deposits The share of user charges/fees has 

increased from 12 % of revenue to 25 % of revenue over the last five years. 

Grants / Contributions from state have been the biggest revenue driver and have doubled in 

the last five years. They contribute to nearly 23% of income. 

Expenditure has remained flat over the last few years, showed an increasing trend till FY 

2003 and marginally declining over the next two years. Salaries have marginally declined due 

to reduction in staff, while Operating expenditure has grown at 13 %. Overall, revenue 

expenditure appears to have been in control. 

Interest expenditure has shown a steep increase, up from 2% of income in 2001 to 12% of 

income in 2005. 

Capital Investment Plan 

We have compiled the felt needs of the city under various service areas, based on 

• Review of projects recommended in the City Corporate Plan 

• Status and progress on projects identified as part of the Vision Plan (2004-09) 

• Consultations with stakeholders and 

• Discussion with officials


Exhibit 2 - Financial analysis 

Exhibit 3 provides a summary of the CIP for MYM. 

Segment 

Outlay as given in 

Vision 

Plan 

CCP SFC 

Exhibit 3 Capital Investment Plan 

Outlay reqd.* 

2006-15 

Roads 1052 350 1,125 2000 

Storm Water 

Drains 

1100 120 325 1000 

Water Supply 30 130 200 

Solid Waste 

Management 

18 170 81 150 

Street Lights 64 12 30 30 

Bus stands and 

rem.enterprises 

2001 2002 2003 2004 2005 CAGR % 

INCOME 

Own Income 295 300 377 526 382 7% 

Property tax 155 164 177 182 187 5% 

Professional tax 16 16 19 19 23 10% 

Water charges 19 13 36 109 89 47% 

Sewerage charges 1 5 38 121 49 214% 

Service Charges and fees 36 33 44 41 18 -16% 

Other Income 68 70 65 54 16 -30% 

Assigned Revenue 87 38 147 154 92 1% 

Devolution and Grants 73 77 144 200 144 18% 

Prior Period - 34 3 1 - 

Total 456 449 671 880 618 8% 

EXPENDITURE 

Staff and terminal benefits 261 254 361 270 249 -1% 

O & M 50 55 66 84 81 13% 

Program - - - - - 

Admin 10 126 59 34 31 32% 

Prior Period - 8 3 1 0 

Operating Expenditure 321 443 490 389 361 3% 

Operating surplus 134 6 181 492 258 18% 

Finance charges 9 - 12 49 76 69% 

Depreciation 7 13 104 81 30 46% 

Cash surplus 125 6 169 443 182 10% 

Overall surplus 118 (8) 64 362 152 6% 

200 712 671 1000 

Remarks on ongoing projects/Projects envisaged 

• Roads require significant upgradation in view of 

the ongoing UGD scheme 

• CCP highlights significant gaps in storm water 

drains 

• Comprehensive water supply project undertaken. 

• Outlay required for distribution gaps, pumping 

system upgradation, additional borewells and 

providing new connections 

• Immediate outlay for procuring equipment (Tipper 

lorry / Dumper place bins) for upgrading primary 

collection and secondary collection 

• Installation of timers / energy saving timers and 

additional lamps 

• Bus stand at an outlay of Rs. 6.5 crore and other 

market developments at an outlay of 92 lakh 

Education 70 50 100 • Development of school infrastructure

Segment 

Sewerage and 

Sanitation 


Vision 


CCP SFC 


Outlay reqd.* 

2006-15 

4216 4280 622 650 


• Completion of remaining part of UGD scheme 

• Coverage of additional areas of approx. 31 kms to 

be covered 

Others 82 316 1,054 100 • Health centres, burial ground etc, Tourism projects 

TOTAL 6732 6060 4,184 5130 

List of priority projects 

Priority projects identified by the municipality are listed below. These projects and the capital 

expenditure estimates given above have been arrived at based on projects identified in the City 

Corporate Plan prepared earlier and based on discussion with Chairperson, Commissioner and 

municipal officials. Select projects identified by MyM are identified below 

• Completion of ongoing UGD scheme. Additional areas left out in the current scheme of 

approximately 31 km of roads as identified by MyM also need to be taken up. 

• Restoration and upgradation of roads in view of the poor condition following implementation of 

UGD scheme and heavy rains last year. 

• Development of new Bus stand. This could be taken up on BOT basis to reduce pressure on 

financials of the municipality. 

• Remunerative projects on a BOT basis, specifically relating to tourism development. There is a 

proposal to develop a Theme park on a BOT basis at Chitarkadu, where 6 acres of municipal land 

is available. 

Reform Agenda 

ULB level 

MYM could potentially increase its own income to Rs. 550 lakh by 2010 through focused 

interventions in the following areas: 

1. Property tax: – through revision in ARV, widening assessee base and closer scrutiny. 

2. Professional tax – sustaining a growth in assessments of 5 % in the assessments through 

widening tax base among traders and self-employed professionals 

3. User charges - MYM should target achieving another 4000 water connections even by FY 2010. 

Implementation of UGD scheme structured partly on public deposits and user charges could also 

add to revenues and investment capacity. 

4. PPP / remunerative projects - MYM also needs to explore land development as a revenue 

enhancement mechanism and should focus on attracting private sector participation through 

appropriate BOT/ SPV structures for implementing remunerative projects. There is a proposal to 

develop a Theme park on a BOT basis at Chitarkadu, where 6 acres of municipal land is available. 

5. Energy costs - A savings of 10-15% reduction in energy costs appears imminently achievable. A 

comprehensive energy audit is required in this regards. 

6. Collection Efficiencies - MyM’s collection efficiency is very low across all its revenue heads 

namely, property tax, professional tax and user charges and needs significant improvement from

current levels. MyM should consider a) a focused one-time drive to clear up its dues and b) 

strengthening of its collection process and organisation to ensure that the overall levels of 

efficiency in order to improve and sustain its collection efficiencies. 

7. NGOs / Corporate participation - Intensify focus on attracting NGOs/advertising revenue for 

city beautification projects. 

Actions from GoTN and GoTN agencies 

1. Initiate action to complete ongoing updation of land use and master plan for Mayiladuthurai 

municipality on priority to guide future growth of the town in an orderly manner. 

2. Revise ARV for property taxes, pending since 1998 at the earliest. 

3. Develop model concessions / formats for involving Private sector in various areas including Solid 

waste, STP O&M, street light maintenance and remunerative projects 

4. Incentivise energy conservation and implementation of SWM guidelines through specific grants 

5. GoTN should continue its thrust on e-governance, accounting systems and capacity 

building/training. Specific actions on this have been identified in the report. 

FOP, borrowing capacity and investment capacity 

While the borrowing capacity computed as the minimum of NPV of operating surplus, 30% of 

revenues during the projection period works out to Rs. 464 lakh, actual projections reveal that 

Mayiladuthurai faces a severe Debt Service Coverage issue even at this level of borrowing. This is 

due to the strain of repayments on its existing loans which stood at nearly 13 crore in FY 2006. 

Therefore, Mayiladuthurai borrowing capacity is negligible even with improvements. 


Exhibit 4 Summary of key results 

Summary of FOP results 

Revenues – FY 2006 (Rs. Lakh) 467 


Revenue CAGR % - FY 2006-15 6.14 

Avg. Op. Surplus (Rs. Lakh) (53) 

Avg. Cash Operating Surplus 

Avg. TE (excluding depreciation)/TR 

41 

(%) 94% 

Average Debt Servicing/TR (%) 26% 

Borrowing Capacity as a minimum of NPV of 

NPV of 50% of Cash Surplus (without 

new loans) 80 

NPV of 30% of Revenue 1,239 

Borrowing Capacity 80 

Investment Capacity 612 

Investment Requirement 3,767 

IC/ IR 16% 

Some drastic measures including restructuring of its existing loans is required for Mayiladuthurai 

municipality to improve its investment capacity. Otherwise, MyM would need to utilize Grants from 

schemes like UIDSSMT and IHSDP to undertake its investments. Further, MyM could also consider 

involvement of private sector in implementing remunerative projects including bus-stands, markets 

and slaughter houses etc.

1.1 Background to the study 

1. Introduction 

Mayiladuthurai is a selection grade Municipal Town and taluk headquarters of the Nagapattinam 

District in Tamil Nadu. Under the Tamil Nadu Urban Development Project - II (TNUDP-II), a City 

Corporate Plan (CCP) was prepared for Mayiladuthurai Municipality (MyM) in 2004. The objective 

of the CCP was to outline a vision for development of the city and to identify strategies and tasks to 

be carried out by MyM. Subsequently, MyM has also developed a 5-year Vision Plan (2004-09), 

identifying various projects that it plans to undertake during this period. In order to enable effective 

implementation of projects envisaged in its CCP and Vision Plan, The Tamil Nadu Urban 

Infrastructure Financial Services (TNUIFSL) mandated ICRA Management Consulting Services 

(IMaCS) for conversion of City Corporate Plan (CCP) into a Business Plan (BP). 

1.2 Scope of work 

The scope of work for the study covered a) assessment of the financial and operating aspects, b) 

Review issues relating to revenue realisation and cost management and identification of improvement 

(revenue enhancement and cost reduction) measures and c) Development of a Financial and Operating 

Plan (FOP), taking into account potential revenue enhancement and cost reduction measures. 

1.3 IMaCS approach to the study 

Exhibit 1.1 gives a snapshot of IMaCS’ approach to the study. 

DIAGNOSIS 

Demands on ULB for 

various services 

Review of ULB 

performance 

Clarity on ‘As-is’ state of the ULB in 

terms of financial and operating 

performance 

CCP 

Vision Plan 

Existing proposals 

of the ULB 

Understanding of 

context in which 

the ULB operates 

Assessment of 

Past Financials 

Underlying 

Operational 

indicators and 

service delivery 

Exhibit 1.1 IMaCS approach to the study 

EVALUATION OF 

CHOICES 

Clarify ULB priorities on 

projects /schemes 

Analysis of likely trends in 

revenue and cost drivers 

Areas and scope for 

revenue and cost 

improvement 

Crystallize Strategic Choices 

going forward 

DEVELOP FINANCIAL & 

OPERATING PLAN 

Base Case Business Plan 

Sensitivity analysis on key 

business drivers 

Critical operational 

outcomes to be achieved 

Steps to be taken by ULB/ 

GoTN /TNUIFSL towards 

achieving the Business 

plan milestones and targets 

Translate options into tangible 

and measurable projections 

Conversion of CCP to BP - Mayiladuthurai Municipality 1

1.3.1 Step I – Diagnostic review 

The diagnostic review involved an assessment of the current status of MyM, its activities and 

financial performance, review of the City Corporate Plan (CCP) and discussions with TNUIFSL and 

MyM. We had the opportunity to interact with the Commissioner along with their team and had 

extensive interactions during our field visits. 

We collected relevant information on the performance (operational and financial) from MyM. Our 

review was focused on the following areas: 

• Financial position 

• Operational performance 

• Demands on urban services in the town/municipality 

The diagnostic review was directed towards achieving a clear understanding of the operating and 

financial performance of MyM. 

1.3.2 Step II – Evaluation of options for financial improvement and projects 

Based on the diagnostic review, we crystallised the options for MyM covering a) analysis of areas for 

revenue enhancement and cost management and b) Felt needs in terms of projects and estimate of 

capital outlay. 

1.3.3 Step III –Projection of financial statements and estimation of investment and 

borrowing capacity 

We have projected financial statements for MyM under two scenarios namely, a) base case and b) 

with potential improvements. Under both scenarios, the optimum borrowing capacity and sustainable 

investment capacity have been computed. 

The Draft Final Report for the study was presented to the office of CMA, officials of Trichy 

Corporation and TNUIFSL in April 2006. Subsequently, the report was presented to Chairperson and 

select council members. This was followed by a review of the report at TNUIFSL by officials of 

TNUIFSL, CMA and MyM. This report incorporates the suggestions from these consultations. 

1.4 Structure of the report 

This report is organised as follows: 

• Section 1 Introduction 

• Section 2 Mayiladuthurai - a brief profile 

• Section 3 Review of operating performance 

• Section 4 Analysis of financial performance 

• Section 5 Potential areas for improvement 

• Section 6 Business plan projections and investment capacity 


2.1 Location and connectivity 

2. Mayiladuthurai - a brief profile 

Mayiladuthurai is a selection grade Municipal Town and taluk headquarters of the Nagapattinam 

District in Tamil Nadu. Mayiladuthurai is located at a distance of 281 kms from Chennai and is well 

connected to all major towns in Tamil Nadu by road and rails. Mayiladuthurai is home to the famous 

‘Mayuranathar’ Shiva temple and the historic tourist centres, Suriyanar Temple, Theralandur and 

Thirunallar are situated near to the town. The river Cauvery traverses through this town. 

2.2 Social and demographic characteristics 

Mayiladuthurai with a total land area of 11.26 sq. km had a population of 84,290 in 2001. 

Year 

Exhibit 2.1 Population trend 

Population Decadal 

Population Variation Growth rate % 

1951 43,436 10,766 32.95 % 

1961 51,399 7,693 18.33 % 

1971 60,196 8,797 17.12 % 

1981 67,710 7,514 12.48 % 

1991 76,837 9,332 13.78 % 

2001 84,290 7,158 9.29 % 

Source: Census of India 

The CCP projects the population in the town to reach 92023 by 2013 and 99070 by 2023. Population 

density is higher in the core areas and lower in the peripheral areas of the city. But the CCP points out 

that there is outward movement of people to the periphery. Population density is more along the river 

palam Kaveri that run across the town from east to west in the southern part of the town. Low density 

areas are of new settlements that spread along the river banks at the periphery of the town. Due to the 

direction of the river and major roads being in the east west directions, developments are taking place 

in the same pattern. 

Mayiladuthurai 1 recorded an overall literacy rate of 80.2 % with female literacy of 76.1 %, while the 

sex ratio was 1012 females per 1000 males. As per Census 2001, the slum population in 

Mayiladuthurai is 13% of the population. However, the municipal data shows an increase in slum 

population and this is a major concern area for the municipal corporation. 

1 Source: http://gisd.tn.nic.in/census-paper2/TABLES/table-1c.htm 


2.3 Economic Development 

2.3.1 Composition of workforce 

The economic base of Mayiladuthurai is predominantly, tertiary sector activities with trading of agro 

products and cottage industries. Hence the participation rate is more in the tertiary sector. 

As per census data of 1991, worker population is about 28.6% of the total population, which is low 

compared to the state figure. The economic based of the town is predominantly tertiary sector 

activities with trading in agri-products and cottage industries. Nearly 67 % of the workforce is 

engaged in the tertiary sector. 

2.3.2 Economic activities 

Industry 

Mayiladuthurai is an industrially backward town and there is no major industry in this town. There are 

about 79 small agro based and household industry spread over the entire developed area. There are 

few engineering industries, welding and lathe works, auto works, tri-cycle manufacturing works and a 

large number of agro based industries that accommodate larger portion of workers. Only 6.325 

hectares are under industrial use, which is very low compared to the standard of 370 hectares use. Key 

industries include rice mills, engineering works, printing press and confectionery making. The CCP 

indicates that the proposed ITI could spur the growth of small scale industry. Additional areas that 

emerged based on consultation with Chairperson and select ward members on potential economic 

activities for the town include the need to create employment intensive investment including rice 

milling and tourism development. It was also suggested that the municipality along with the Tamil 

Nadu Slum Clearance Board should identify vacant/acquirable land areas within the municipal areas 

to create land parcels for industrial development and slum rehabilitation. 

Heritage and tourism activities 

Being a temple town (the Mayuranathar Temple attracts pilgrims from other places), Mayiladuthurai a 

tourist centre. It is also strategically located in close proximity to the famous nine Navagraha temples. 

A number of important tourist places including Poompuhar, Mayuram, Tanquebar and Therazendur 

are in close proximity to the town. Since Mayiladuthurai has a good road and rail system, it acts as a 

halting junction for pilgrimages. The CCP points out that there is good scope for exploiting tourist 

potential and substantially increasing the economic growth of the town. 

Trade and commerce 

In terms of commercial activity, there are weekly markets and daily markets and an Uzhavar Sandhai 

functioning at present in Mayiladuthurai. The Municipality runs the commercial complex with 11 

shops in the Kittapa Commercial complex. Apart from these, there are flower and vegetable markets 

from where goods are exported to other cities. The town is an aggregation centre for a special variety 

of mangoes called ‘Pathiri’ got from the surrounding villages. Milk production is also an important 

activity around the town. 


2.4 Land use management 

Mayiladuthurai Municipality covers an extent of 11.27 sq. km. The CCP observes that the 

developments extend from the core of the town along the main roads as ribbon developments. High 

density residential areas are in the older parts of the town. Mayiladuthurai is located amidst a fairly 

large agricultural belt and trading in agricultural products thus forms an important activity in the 

town. 

2.4.1 Issues in land-use 

Mayiladuthurai municipal area has been declared as Mayiladuthurai Local Planning area. The member 

of the council form members of the planning area as well. Exhibit 2.2 provides details of land use. 

The urbanised area constitutes 620 hectares out of the total 1137 hectares. About 44.9% of the total 

area comes under undeveloped / non-urbanised land. The land use pattern in 1996 is as given below: 

Exhibit 2.2 Land-use - 1996 and 2011 (proposed) 

Sl. No Type 1996 Provided in master plan (2011) 

Land (ha) % of total Land (ha) % of total 

1 Residential 498.84 44.27 892.20 79.2 

2 Commercial 68.87 6.11 78 6.9 

3 Industrial 6.33 0.56 12 1.1 

4 Educational 22.35 1.98 45 4.0 

5 Public and semi-public 24.27 2.16 25 2.2 

6 Agricultural and others 506.35 44.92 74.5 6.6 

Total 1127 100 `1127 100 

Residential areas proposed include Pattamangalam, Koradadu, Sithakadu, Mayuram, Tiruvillandu and 

Vellalagaram village parts with low-medium densities. The residential areas are divided into primary 

residential and mixed residential. The primary residential area has been zoned on newly developed 

areas and the central part of the town has been designated as mixed residential. The majority of 

commercial activity is spread around the existing bus stand area. Commercial areas have been 

proposed in the centre of the town around the bus stand between Mahathanapuram road and hospital 

road. Commerical areas are also proposed along the major highways including Kumbakonam road 

and Avoor road. An ITI is provided for as part of the master plan as part of the Industrial area, for 

which 12 acres have been allocated. 

2.5 Strategy for development 

The CCP outlines the following strategies for development: 

• Provision of food processing centre for fruit and milk products 

• Improvement of agro-processing industries around the town that have direct and indirect impact 

on employment opportunities 

• Improvement of linkages of the town to other urban centres 

• Provision of better facilities including lodging and boarding facilities for tourists. 


Additional areas that emerged based on consultation with Chairperson and select ward members on 

potential economic activities for the town include the need to create employment intensive investment 

including rice milling and tourism development. It was also suggested that the municipality should 

identify vacant/acquirable land areas within the municipal areas to create land parcels for industrial 

development and other economic activities. 


3. Review of operating performance 

This section presents a review of the status of infrastructure development undertaken by MyM 

3.1 Water Supply 

Water Supply to Mayiladuthurai town is through two water supply schemes of TWAD and hand 

pumps 

• Scheme I – This was initiated in 1969 to provide protected water supply to the town and was 

designed to cater to ultimate population of 62000 at a per capita supply of 70 litres per day 

(LPCD). However the carrying capacity has been reduced to 55 LPCD. 

• Scheme II – TWAD has implemented an augmentation project at a cost of Rs. 11.25 crore 

including construction of a collector well and a pumping main of length of 20.2 km. Water supply 

is effected through three additional service reservoirs and a new distribution system of 45.8 km. 

• Hand pumps - 296 hand pumps have been installed at various places in the town. 

The new water supply scheme was designed to meet the intermediate stage (2011) and ultimate stage 

(2026) requirement of water supply, worked out to 103.5 lakh litres and 139.5 lakh litres respectively. 

Hence the water supply scheme is expected to satisfy the present and future demand of water for the 

projected population. 

3.1.1 Key issues 

Exhibit 3.1 Water supply 

Source I Source 2 Source 2 

Supply 

Source Location Sitharkadu Gandhi Nagar Mamarathu medai 

Daily intake (Lakh litres) 27 6 9 

Transmission type Pumping Pumping Pumping 

Location of Head works Vennar Coleroon 

Avg. per capita supply 90 LPCD 

Distribution 

Distribution main (km) 99.47 km 

% of road length covered 99.8% 

Storage 

Storage Capacity 

Existing capacity 4 OHTs with capacity of 4.75 million litres 

Norm 3.7 Million Litres 

Some of the key issues with respect to water supply are highlighted below: 

• Demand – Supply – MyM’s supply of 7.5 MLD corresponds to 90 LPCD which is in line with 

municipal norms. 

• Scope for adding water connections – Water connections account for only about 37 % of the 

number of properties assessed and indicate the scope for adding more connections. However, the 

high proportion of slum population and availability of water fountains constrain the ability to add 

more connections. Further, availability of ground water for households also deters people from 

taking household connections. 


• Poor collection efficiency - Current collection efficiency was only 65 % in FY 2005. Overall 

collection efficiency is even lower due to poor arrears collection ( 40 % efficiency) and is a major 

cause for concern, especially considering the significant debt servicing obligation that MyM has. 

• Other issues - Uneven distribution and low pressure supply complaints prevail in select wards in 

the town. Also certain extended areas of the town need to be provided with distribution main. 

There has been no formal leakage audit and this initiative could enable improve the efficiency of 

water supply. 

3.2 Sanitation 

3.2.1 Under Ground Drainage (UGD) 

Mayiladuthurai is currently implementing an Underground sewerage system with assistance 

under the National River Conservation Program (NRCP) 

Mayiladuthurai is in the process of implementing comprehensive Underground drainage scheme with 

assistance from NRCD at an outlay of Rs. 42 crore. Nearly 80 % of the pipeline work for the project 

has been completed. When completed the project is expected to be ready to serve more than 13000 

house service connections. The project would have 8 pumping stations with 1 sewerage treatment 

plant. The UGD scheme is expected to be completed during the course of the next two years. Exhibit 

3.3 provides details of the existing sanitation facilities in Mayiladuthurai. 

Exhibit 3.3 Sanitation facilities – 

% of 

households 

Households 16070 

Septic tanks 12535 

Low cost sanitation 1562 

Public conveniences (usable) 12 

Public conveniences (non usable) 19 

Source: CCP 

Cost of additional areas covering 31 km which were not covered by the above project is estimated at 

Rs. 4 crore. MyM is keen to implement the same upon completion of the existing project 

3.3 Storm water drains 

Storm water drains are provided in approximately 10 % of the total road length within MyM limits. 

Exhibit 3.4 provides the details. 


Exhibit 3.4 Storm water drain network 

Details Length in km % coverage 

Open pucca / surfaced 39 36% 

Kutcha / unlined 4 4% 

Total Drains (km) 43 40% 

Roads without drains 64 60% 

Total Road Length (km) 107 100% 

Source: SFC Questionnaire Jun 2005 

3.4 Solid Waste Management 

Mayiladuthurai generates nearly 104 MT of solid waste per day, while collection is estimated about 

85 MT per day (implying nearly 80% collection). Exhibit 3.5 gives the current status of solid waste 

generation and management system of MyM. 

Exhibit 3.5 Solid Waste Management - current status 

Generation / day 38 MT 

Collection / day 35 MT 

Door - to - door collection All wards 

Privatisation of door-to-door collection 39 streets 

Compost Yard area 4.62 acres 

MyM’s vision plan has identified deficiencies in terms of compost yards and transportation 

infrastructure. MyM is in the process of implementing a project at an outlay of Rs. 53 lakh to improve 

its solid waste management handling infrastructure. 

3.5 Roads 

Exhibit 3.6 provides details of the road network under the jurisdiction of MyM. 

Exhibit 3.6 Road network 

Type Municipal Roads Highways 

Cement Concrete pavement 5.617 6% 

km % km % 

BT. Roads 75.784 87% 20.854 100% 

W.B.M roads 3.457 4% 

Earthen Roads 2.685 3% 

Total 87.543 100.00% 20.854 100 

MyM maintains a road network of nearly 87.5 km of which surfaced roads (both B.T. and CC) 

constitute 87 %. In addition, nearly 20 km of highway roads traverses the MyM area. The road 

network requires significant upgradation in view of the ongoing UGD scheme. 


3.6 Street lights 

Exhibit 1 provides details of provision of street lights by MyM. Nearly 76 % of the lights are tube 

lights and 24 % are sodium vapour lamps. Average spacing between the lights (~ 28 m) is in line with 

the municipal norm of 30m. Exhibit 3.7 provides the details. 

3.7 Bus stands 

Exhibit 3.7 Existing Street Lighting Facilities 

Type Nos. 

Tube lights 2334 

Sodium Vapour Lamps 708 

Mercury Lamps - 

High Mast /Others 3 

Total 3045 

The existing bus stand in Mayiladuthurai is on the Kumbakonam Sirkazhi road. It is a class B bus 

stand with about 12 bus bays. The CCP observes that the bus stand is highly saturated. MyM has 

proposed to develop a Class A bus stand to the 8.74 acre site at Thenamara salai. The proposed bus 

stand is to developed at an outlay of Rs. 7 crore and would have 51 bus bays and all required 

amenities. 

3.8 Capital Investment Plan 

We have compiled the felt needs of the city under various service areas, based on 

• Review of projects recommended in the City Corporate Plan prepared earlier under TNUDP - II 

• Status and progress on projects identified as part of the Vision Plan (2004-09) prepared by MyM 

• Discussion with MyM officials 

Priority projects as identified by MyM are listed below 

1. Completion of ongoing UGD scheme. Additional areas left out in the current scheme of 

approximately 31 km of roads as identified by MyM also need to be taken up. 

2. Restoration and upgradation of roads in view of the poor condition following implementation of 

UGD scheme and heavy rains last year. 

3. Development of new Bus stand. This could be taken up on BOT basis to reduce pressure on 

financials of the municipality. 

4. Storm Water Drains 

5. Remunerative projects on a BOT basis, specifically relating to tourism development. There is a 

proposal to develop a Theme park on a BOT basis at Chitarkadu, where 6 acres of municipal land 

is available. 


Exhibit 3.8 provides a brief snapshot of the felt needs of MyM over the next ten years for various 

services and the estimated outlay for implementing these projects. 

Segment 


Vision 


CCP SFC 

Exhibit 3.8 MyM - Felt needs (2006-15) 

Outlay reqd.* 

2006-15 

Roads 1052 350 1,125 2000 

Storm Water 

Drains 


• Roads require significant upgradation in view of the 

ongoing UGD scheme 

1100 120 325 1000 • CCP highlights significant gaps in storm water drains 

Water Supply 30 130 200 

Solid Waste 

Management 

18 170 81 150 

Street Lights 64 12 30 30 

Bus stands and 

rem.enterprises 

200 712 671 1000 

• Comprehensive water supply project undertaken. 

• Outlay required for distribution gaps, pumping system 

upgradation, additional borewells and providing new 

connections 

• Immediate outlay for procuring equipment (Tipper lorry 

/ Dumper place bins) for upgrading primary collection 

and secondary collection 

• Installation of timers / energy saving timers and 

additional lamps 

• Bus stand at an outlay of Rs. 6.5 crore and other 

market developments at an outlay of 92 lakh 

Education 70 50 100 • Development of school infrastructure 

Sewerage and 

Sanitation 

4216 4280 622 650 

• Completion of remaining part of UGD scheme 

• Coverage of additional areas of approx. 31 kms to be 

covered 

Others 82 316 1,054 100 • Health centres, burial ground etc, Tourism projects 

TOTAL 6732 6060 4,184 5130 


4. Analysis of financial performance 

This section provides a summary analysis of the financial performance of MyM. 

4.1 Income and Expenditure summary of MyM 

Exhibit 4.1 provides a summary of the income and expenditure of MyM. This summary has been 

prepared based on information provided by MyM 2 . 

Exhibit 4.1 Income and Expenditure of MyM - Last five years 

4.2 Revenue streams of ULB in Tamil Nadu 

Revenue of ULBs in Tamil Nadu can be categorised along three areas: 

• Own Revenue - comprising taxes (property tax and professional tax), user charges (water, 

sewerage, solid waste etc.) and other non-tax income (lease and rents, sale & hire charges etc) 

• Assigned Revenue - Income generated revenues shared with the ULB 

• Grants and Contributions - Grants and transfers made by GoTN 

2 We have received the audited accounts from MyM for FY 2001 to FY 2004 and information on FY 2005 (as in the case of 

DCB statements) 

2001 2002 2003 2004 2005 CAGR % 

INCOME 

Own Income 295 300 377 526 382 7% 

Property tax 155 164 177 182 187 5% 

Professional tax 16 16 19 19 23 10% 

Water charges 19 13 36 109 89 47% 

Sewerage charges 1 5 38 121 49 214% 

Service Charges and fees 36 33 44 41 18 -16% 

Other Income 68 70 65 54 16 -30% 

Assigned Revenue 87 38 147 154 92 1% 

Devolution and Grants 73 77 144 200 144 18% 

Prior Period - 34 3 1 - 

Total 456 449 671 880 618 8% 

EXPENDITURE 

Staff and terminal benefits 261 254 361 270 249 -1% 

O & M 50 55 66 84 81 13% 

Program - - - - - 

Admin 10 126 59 34 31 32% 

Prior Period - 8 3 1 0 

Operating Expenditure 321 443 490 389 361 3% 

Operating surplus 134 6 181 492 258 18% 

Finance charges 9 - 12 49 76 69% 

Depreciation 7 13 104 81 30 46% 

Cash surplus 125 6 169 443 182 10% 

Overall surplus 118 (8) 64 362 152 6% 


Exhibit 4.2 provides a detailed classification of the revenue streams. 

4.3 Revenues 

Assigned 

Revenue 

Entertainment 

Tax 

Stamp Duty 

Exhibit 4.2 Revenue streams - ULBs in Tamil Nadu 

Non- Tax Income 

Water Charges 

Other Charges 

Other Income 

ULB-Income 

Own Income 

Tax Income 

Property Tax 

Profession Tax 

Other Taxes 

Transfer from 

Govt 

Devolution Fund 

Grants and 

Contribution 

Exhibit 4.3 provides details of revenue of MyM along various heads between FY 2001 and FY 2005. 

1000 

500 

0 

Exhibit 4.3 Revenue trend 

68 

73 

87 

56 

104 

77 

38 

51 

147 

118 

271 

92 

156 

171 180 195 201 210 

Figures in Rs. Lakh 

Conversion of CCP to BP - Mayiladuthurai Municipality 13 

68 

144 

55 

200 

154 

16 

144 

2001 2002 2003 2004 2005 

Taxes User charges Assigned Revenue Devolution and Grants Others

4.3.1 Tax Income 

Tax income has grown at a CAGR of 5 % over the last five years. Share of taxes have declined from 

37% to 34 % of income. 

Property Tax 

Property tax alone accounted for a 30 % of income of MyM in FY 2005 and is an important 

contributor of revenues to MyM. Following are the key issues / observations with respect to property 

tax. Exhibit 4.4 provides a summary. 

Year 

Exhibit 4.4 Property tax - analysis of key revenue drivers 

Collection Efficiency Properties 

Arrears Current Total Numbers Tax/property Growth % 

2000-01 18% 79% 56% 15737 1054 na 

2001-02 20% 81% 57% 15827 1090 1% 

2002-03 19% 81% 55% 15938 1142 1% 

2003-04 16% 69% 47% 16163 1146 1% 

2004-05 42% 82% 67% 16373 1095 1% 

a) Decline in share of property tax - Even though the property tax has increased in absolute 

terms, its share in total income has declined from 34% to 30 % over the last five years. 

b) Low assessments growth - Assessments have grown at just 1% and the average tax per 

assessment has also been stagnant. The quinquennial revision of Annual Rental Value 

(ARV) due in 2003 has not been undertaken as of date. 

c) Low collection efficiencies - Collection efficiency is a cause for concern. While collection 

efficiency in current demand has been around 82 % in 2005, efficiency in overall collection 

has been very low (47% - 67% in the last 5 years). Overall efficiency has improved to 67 % in 

FY 2005, but needs significant improvement. 

d) Aging of arrears - Growth in arrears in the last 5 years is a disturbing trend and needs to be 

arrested. 

e) Break-up of assesses - Residential segment contributes 71 % of the total assessments, but 

only 58% of the total property tax demand. The municipality must take steps to increase 

property tax from this category. Exhibit 4.5 below gives the detailed break-up of assesses for 

property tax. 


Professional tax 

Exhibit 4.5 Property Tax - breakup of assessees 

Category of Property Number of 

Assessments 

% Tax Demand 

2005 - Rs. lakh 

Residential 11618 71% 105 58% 

Commercial 4433 27% 45 25% 

Industrial 84 1% 24 13% 

State Government Properties 309 2% 7 4% 

Public Sector Undertakings 2 0% 1 1% 

Total 16446 100.00% 182 

Exhibit 4.6 provides an analysis of key drivers for professional tax revenue. 

Year 

Exhibit 4.6 Professional Tax - revenue drivers 

Collection Efficiency Assessments 

Arrears Current Total Numbers Tax/assessment Growth % 

2000-01 3% 90% 26% 3140 503 na 

2001-02 1% 88% 23% 3142 498 0% 

2002-03 0% 84% 24% 1840 1009 -41% 

2003-04 1% 85% 25% 1562 1240 -15% 

2004-05 3% 87% 29% 1505 1552 -4% 

a) Share of professional tax in total income has increased from 3% to 4% 

b) Demand per assessment was Rs. 1552 per assessee in FY 2005. 

c) Collection efficiency has been very low While a current collection has been more than 85%, 

arrears collection is negligible. 

d) Composition of professional tax assessments - Exhibit 4.7 below shows the composition of 

assessments. 

Exhibit 4.7 Professional Tax – assessee break up 

Category Number of 

Assessments 

State/Central/Quasi Govt. 

Employees 

% Annual Tax 

demand 


% 

69 5% 1820 78% 

Traders 1362 90% 421 18% 

Self-employed professionals 42 3% 52 2% 

Private employers/ 

Companies 

13 1% 20 1% 

Private employees 19 1% 24 1% 

Total 1505 2337 100% 

%

4.3.2 User Charges / Fees 

User charges have also grown by a healthy 30%, aided by 47% increase in collection of water charges 

and initiation of collection of deposits for sewerage connections. As a result, the share of user 

charges/fees has doubled from 12% of revenue to 25 % of revenue over the last five years. 

Exhibit 4.8 provides an analysis of key drivers for water charges. 

Year 

Exhibit 4.8 Water charges - revenue drivers 

Collection Efficiency Connections 

Arrears Current Total Numbers 

Charges/ 

connection 

Growth 

rate 

2000-01 17% 70% 42% 5131 245 na 

2001-02 24% 85% 51% 5204 242 1% 

2002-03 30% 81% 62% 5439 428 5% 

2003-04 27% 52% 45% 5674 705 4% 

2004-05 40% 66% 55% 6131 701 8% 

a) No. of connections - There has been an increase in the number of connections from 245 in 

FY 2001 to more than 701 connections in FY 2005. Water connections account for about 37 

% of properties assessed, indicating scope for increasing the number of connections. The low 

penetration is also due to the availability of water fountains in several areas (covering nearly 

35% of population) which lead to loss of revenue for MyM. 

b) Water tariff / connection has increased from about Rs. 245 per year per connection to 

Rs.701 per connection in FY 2005. 

c) While 80% of the water connections are metered, water billing is being done on a flat 

(monthly) basis. Refer exhibit 4.9 for details of type of connections and water charges. MyM 

is considering collections on the basis of meter readings. 

d) Collection efficiency - Current collection efficiencies have ranged from a low of 63% (FY 

2004) to a high of 75% (FY 2005) and have not shown a linear trend. Arrears collection 

efficiency has been very low and has ranged between 21% and 33%. The overall collection 

efficiency of 55% is quite low and needs significant improvement. 

Exhibit 4.9 Water charges - category wise connections and tariff 

Connections Metered Un-metered Total % Billing 

system 

Domestic 6098 - 6098 97% Flat rate 

Commercial 183 - 183 3% Flat rate 

Total 6281 - 6281 100% 

Connection Type Flat rate Per KL 

Domestic Minimum Rs. 70 /-PM Rs.5/- 

Commercial Minimum Rs. 122/-PM Rs. 10/- 


4.3.3 Assigned Revenue 

Assigned Revenue (which includes transfers of stamp duty and entertainment tax) has grown from Rs. 

87 lakh to Rs. 92 lakh over the last five years, but its share in total income has declined from 19% to 

15%. 

4.3.4 Grants/Contributions 

Grants / Contributions from state have one of the biggest revenue drivers and have doubled during FY 

2001-05. They contributed to nearly 23 % of revenues of MyM in FY 2004. 

4.4 Analysis of Costs 

Exhibit 4.10 provides details of costs of MyM along various heads between FY 2001 and FY 2005. 

Total expenditure has shown an increasing trend till FY 2003, before decreased over the next two 

years. Salary expenditure has declined, while O&M and finance charges have shown an increase. 

1000 

500 

4.4.1 Salary and wages 

0 

Exhibit 4.10 Costs - FY 2001 and FY 2004 

9 134 

10 

50 55 

261 254 

While salary and wages account for the highest expenditure (more than 40%% of total expenditure), it 

has shown a declining trend during FY 2001 to FY 2004. This has been due to the lack of addition in 

staff over the last few years and a number of posts remaining vacant. As of March 2005, the number 

of employees was 343. 

4.4.2 Operations and Maintenance 

0 

O & M forms the other major component of total expenditure. In absolute terms, this expenditure has 

been around 10-13% of total income during this period. 


12 

62 

66 

361 

49 

35 

76 

31 

84 81 

270 249 

2001 2002 2003 2004 2005 

Staff O & M Admin Finance charges

Power costs 

Exhibit 4.11 gives the details of power costs out of the total repair and maintenance expenditure 

relating to Water & Sewerage and Street lights. Power costs have grown at a CAGR of 13%, driven 

primarily by a steep increase in power costs for street lights. 

Exhibit 4.11 Power costs - Water & Sewerage and Street Lights 

Power costs FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 

Water & Sewerage (WS) 6 7 10 20 25 

% of total W&S 29% 29% 49% 50% 51% 

Street lights 21 23 43 41 42 

% of total Street light 65% 63% 83% 79% 76% 

Total 27 30 53 61 67 

Source: SFC questionnaire 

Power costs account for nearly 51 % of repair & maintenance costs of water and sewerage and t76% 

of operating street lights. 

Power costs have gone up from 19 % of O& M expenditure in FY 2001 to nearly 29 % of O&M 

expenditure in FY 2005. 

4.4.3 Operations and Maintenance 

Exhibit 4.12 gives the details of outstanding loans of MyM at the end of last five years. 

Lending Agency 

Amount of 

Loan 

Year of 

drawal 

Exhibit 4.12 Loan Statement 

Interest 

Rate % 

Repayment 

period 

(years) 

Total loan repaid as on 

30.9.2005 

Principal Interest Total 

Outstanding 

loan amount 

(3-9+13+14) 

2 3 4 5 6 9 10 11 16 

Govt. Loan 76.65 1998 13.5% 20 35.76 7.16 42.92 40.89 

1) Roads & 

Drainage 

2) Construction of 

Shops 

17.79 1994 8.75% 20 8.66 20.53 

20.06 1995 8.75% 15 8.12 22.65 

29.19 9.01 

30.77 11.96 

3) Special Roads 89.65 2003 9.05% 13 - 8.62 8.62 89.65 

1) Water Supply 367.06 2003 9.05% 15 - 74.30 74.30 367.06 

Water Supply 850.60 2004 8.20% 9 33.36 34.96 68.32 817.24 

Total 1421.81 85.90 168.22 254.12 1335.81 


To summarise, 

MyM’s financial position has improved from an cash surplus of Rs. 125 lakh in FY 2001 to a cash 

surplus of Rs. 182 lakh in FY 2005, though its outstanding debt (Outstanding loan of Rs. 13 crore) is 

high. Key highlights are summarised below: 

• A 8 % CAGR in revenue and by keeping costs in check. 

Tax income has grown at a CAGR of 5 % over the last five years in spite of no revision in 

Average Rental Value (ARV) since 1998. 

User charges have grown by a healthy 30 %, aided by increased in collection of water charges 

and other fee income including sewerage deposits The share of user charges/fees has 

increased from 12 % of revenue to 25 % of revenue over the last five years. 

Grants / Contributions from state have been the biggest revenue driver and have doubled in 

the last five years. They contribute to nearly 23% of income. 

• Expenditure has remained flat over the last few years, showed an increasing trend till FY 2003 

and marginally declining over the next two years. Salaries have marginally declined due to 

reduction in staff, while Operating expenditure has grown at 13 %. Overall, revenue expenditure 

appears to have been in control. 

• Interest expenditure has shown a steep increase, up from 2% of income in 2001 to 12% of 

income in 2005. 


5.1 Public private partnerships (PPP) 

5. Potential areas for improvement 

MyM should consider handling the operations and maintenance of the Sewerage Treatment Plant of 

the ongoing UGD scheme and implementation of the proposed slaughter house project through private 

sector participation. MyM should explore more areas to augment its own resources through use of 

PPPs. PPPs have been found to be very effective in addressing efficiency and asset management 

(through pre-defined service levels and accountability for operations and maintenance) aspects of 

infrastructure development. In this regard, 

1. CMA, GoTN should develop a framework for PPP including specific policies and guidelines. 

2. MyM should explore use of private sector participation in undertaking any remunerative 

projects in areas such as slaughter house, market development etc., through public private 

partnerships. To start with, MyM should explore developing the proposed new bus-stand and the 

amusement park at Chittarkadu through BOT / PPP structure. 

3. Being part of an heritage circuit, MyM should actively pursue projects that improve the tourist 

experience in the town. Several initiatives relating to tourism development can be pursued in 

partnership with private sector investment / corporate donations and NGO/Self Help Group 

partnerships. In Mayiladuthurai, MyM should pursue the following 

• Encourage corporate / NGO partnerships for heritage preservation and city beautification 

projects, including development and maintenance of parks. 

• Consider addition of more identified parking zones and pay-and-use toilets in the town. These 

could be maintained through Self-Help Groups. 

• Explore the feasibility of provision of integrated concrete roads with ducts for underground 

cabling and storm water drains around important heritage/tourist areas and align traffic movement 

to ensure ease of tourist movement during festivals. This would also enable better tourist 

experience and better maintenance of heritage centres. 

4. TNUIFSL should provide assistance covering necessary capacity building (in terms of 

evaluating mechanisms - BOT, SPV etc) and financing for developing projects through 

private sector participation. 

5.2 Potential for revenue enhancement 

5.2.1 Property Tax 

Exhibit 5.1 highlights the key issues and recommended interventions with respect to property tax. 

While a substantial improvement in property tax is contingent upon implementation of ARV revision 

(due in 2003), there are other interventions that would enable effective property tax realisation. 


Exhibit 5.1 Key issues and suggested measures 

Issues Recommended Interventions Agency 

Revision of Annual rental Value (ARV) 

has fallen due in 2003. The revision is 

yet to be implemented. 

In 1998 when the ARV scheme for 

assessing property tax was introduced, 

the old assesses were allowed to pay 

taxes based on capital value with 

marginal increase, leading to 

distortions and non-uniform rates. 

Survey of properties happens only 

when the ARV revision takes place. 

Apart from addition in properties 

without getting assessed, addition to 

area in existing properties or 

conversion of property from residential 

to commercial category also goes 

unnoticed leading to revenue loss 

On an absolute basis, property tax 

arrears have shown an increasing 

trend. 

While Property tax is payable on a 

semi-annual basis, no interest /penal 

charges are levied on late payment. 

5. GOTN should implement the SFC 

recommendation of revision of property 

tax every three years, linked to inflation. 

This is will ensure gradual and stable 

increase, rather than the existing 

quinquennial revision. 

6. All assesses should be taxed on the 

same basis through a uniform and 

transparent approach to property tax 

assessment. Existing anomalies need to 

be removed at the earliest. 

7. Initiate a one-time survey to prepare a 

comprehensive database of properties 

available with it with updated information 

on the area / type and property tax details 

8. Institutionalise a mechanism for 

conducting surprise checks on a sample 

basis in all wards on an ongoing basis 

and mandatory re-assessment of 

9. 

properties every five years. 

Streamline procedures for assessment/ 

approvals of new properties / expansion 

of existing properties to encourage selfdisclosure 

of property development / 

modification 

10. Computerise and web-enable property 

tax assessment and billing processes 

11. Develop a GIS based system for effective 

data capture and monitoring 

12. Launch a focused drive on existing 

arrears 

13. Conduct one time settlement scheme for 

old arrears and incentivise payments 

through marginal rebates for arrears 

pending for more than 5 years. 

14. Work with GOTN to moot creation of a 

special tribunal for speedy disposal of 

properties under litigation 

15. Make provisions for the debtors and take 

steps for writing off bad debts 

16. Implement Payment Due Date along with 

a 90 day grace period during which 

payments would involve a nominal 

interest payment. 

17. Payments beyond the grace period 

should include a steep penal charge to 

encourage payments on time. 

GoTN 

GoTN / MyM 


Ku 

GoTN/MyM 

GoTN/MyM

Issues Recommended Interventions Agency 

Tax Dispute cases where the assessee 

approaches legal recourse without 

paying any tax. 

Blanket Exemptions to institutions 

reduce the property tax potential 

5.2.2 Professional Tax 

18. In case of disputed property tax, the 

assessee should first pay the tax under 

protest as in the case of excise or 

customs and then take the necessary 

legal recourse. The Act should be 

modified in such a way that no legal 

recourse should be available to the 

assessee without paying the tax under 

protest. 

19. Exemptions from tax should be provided 

only to needy institutions. For example 

blanket exemption to educational 

institutions (including large self-funded 

private residential schools) should be 

reviewed. 

20. All exemptions lead to a revenue loss to 

the ULBs and should be compensated by 

GoTN. 

GoTN / MyM 

GoTN / MyM 

Professional tax income has grown at a CAGR of 3 % over the last five years. Specifically, 

21. MyM should focus on widening its professional tax base by bringing more traders and 

independent professionals within the ambit of professional tax. Specifically, MyM should 

consider tapping into databases of potential professional tax assesses including 

• Professional associations including Institute of Chartered Accountants of India (ICAI), the Bar 

Council, Medical Council etc. 

• Commercial Taxes Department, GoTN to get details of sales tax registrations (existing and 

new) within MyM. 

5.2.3 User charges 

MyM has been fairly successful in progressively increasing user charges, as reflected in the increase 

in the average water charges per collection and could augment its revenues through focused 

interventions including the following. 

22. Increase penetration of connections for water supply. Currently MyM’s water connections 

account for only 37 % of the properties assessed. MyM should target achieving at least 10,000 

connections over the next five years. Introducing staggered payment of deposits (in instalments) 

instead of one-time payment may encourage additional connections and should be explored. 

23. Provide water fountains only in areas with a predominantly low-income population to 

minimise revenue loss. Consider providing connections to groups of households and charge 

a nominal monthly user charge for the same. 


24. Improve revenue per connection through implementation of either a graded water tariff 

scheme (as is being considered by CMA, GoTN) or a metering based tariff. While the 

metering based system would a better system in principle (charges on the basis of usage) and in 

terms of incentivising water conservation, ULBs have faced resistance in implementation of 

metered tariffs. 

25. Consider implementing user charges for door-to-door collection of Solid Waste. 

26. Adopt measures to improve collection efficiency. Overall collection efficiencies in water 

charges are very low and needs to be improved. MyM should consider stiff penalties for nonpayment 

of user charges. Specifically MyM should consider implementation of late payment fines 

and in case of extreme overdue situations, disconnecting supply. 

5.2.4 Measures to improve collection efficiency 

27. MyM’s collection efficiency is very low across all its revenue heads namely, property tax, 

professional tax and user charges and needs significant improvement from current levels. MyM 

should consider a) a focused one-time drive to clear up its dues and b) strengthening of its 

collection process and organisation to ensure that the overall levels of efficiency in order to 

improve and sustain its collection efficiencies. 

5.3 Measures for cost management 

5.3.1 Energy efficiency 

MyM needs to take steps to address its power costs, which comprise nearly 60% of its operations and 

maintenance costs. The following steps are needed in this direction: 

28. MyM should conduct a comprehensive energy audit to identify areas for reducing power 

consumption and related costs. As envisaged in its Vision Plan, MyM should implement 

automatic time based dimmers on street light network and ensure that all pumps / motors are 

energy efficient. 

29. GoTN should also consider a specific grant / capital subsidy scheme to incentivise energy 

conservation initiatives for not just MyM, but for all ULBs. 

30. CMA, GoTN and TNUDF should develop and implement minimum standards related to 

energy conservation including installation of energy efficient motors, right sized pumps etc. 


5.4 Other measures / interventions 

5.4.1 Accounting /Audit 

While all ULBs in GoTN have implemented a double entry accounting system, most of the ULBs 

including MyM require significant improvement in their accounting practices. Several ULBs have 

redundant systems involving manual and computerised book keeping and errors often creep into MIS. 

Often, the MIS in the form of DCB statements and information provided in accounting statements are 

not reconciled. 

31. CMA, GoTN should consider an outlay for technical assistance to ULBs to improve their 

accounting systems and practices and to provide adequate training to staff on the concepts of 

double entry book keeping. 

32. Property tax system has been computerised but the software for accounting developed seems to 

have some errors. TNUDF should take steps to eliminate these teething problems in the 

accounting software. 

33. GoTN should issue an order for phasing out manual books like the property tax DCB registers as 

the same data is being maintained both manually and also in computer database. 

34. The LFA should also be given training in auditing through computer so that the manual books can 

be avoided in future. 

35. GoTN should insist and implement closing of accounts and audit of the same within a fixed 

time period subsequent to the completion of financial year. The government should continue to 

provide for the payment of common accountants and computer assistant to work in the ULB 

which it was providing till date. GoTN should also evaluate the option of employing a local CA 

firm to give guidance and training to ULB staff on a regular basis. CMA, 

36. TNUDF should consider a grading system to categorise ULBs on the basis of accounting and 

reporting practices 


6. Business plan projections and investment capacity of MyM 

6.1 Financial and Operating Plan – time horizon and scenarios 

The FOP has been prepared for a ten-year period i.e., FY 2006-2015 for 2 different scenarios as given 

below: 

• Scenario I - Base projections 

• Scenario II – Projections with ‘potential improvements’ 

The basis and assumptions underlying income and expenditure projections for the FOP are detailed in 

section 6.2 

6.2 Basis and assumptions 

6.3 Revenues 

Property tax 

Property tax projections has been arrived at as a product of average tax per assessment and the 

number of properties assessed. Assumptions on these revenue drivers are given below: 

• Scenario I –Base case 

Assessments growth – 1.00% per annum (in line with the CAGR over the last five years), 

with a cap on the number of assessments at 20,000 properties. The base number of 

assessments has been taken as 16,373 properties. 

Average tax per property - Rs. 1095 per property assessed, in line with the average tax per 

property collected in FY 2005. 

Arrears collection efficiency - 42 % for FY 2006 (maximum during FY 2001-05) in FY 2005 

and assumed to increase by 2 % every year (44% in FY 2007 and so on) 

Current collection efficiency - 82 % for FY 2006 (maximum during FY 2001-05) in FY 2005 


• Scenario II – with improvements 

Assessments growth – 8% per annum, with a cap on the number of assessments at 32,000 

properties. 

Average tax per property - Rs. 1095 per property assessed in FY 2006 with a one-time 

upward revision of 25% in FY 2007 

Collection efficiency are kept at the same levels as Scenario I 

Profession tax 

Profession tax has been arrived at as a product of average tax per assessee and the number of 

assessments. Assumptions on these revenue drivers are given below: 


• Scenario I –Base case 

Assessments growth – 4.00% per annum (assumed as the CAGR over the last five years is 

negative), with a cap on the number of assessments at 4,000. The base number of assessments 

has been taken as 3140 assessments. 

Average tax per assessment - Rs. 1552 per assessment, in line with the average in FY 2005. 

No revision has been assumed for the base case. 

Arrears collection efficiency – 3% for FY 2006 (maximum during FY 2001-05) in FY 2005 


Current collection efficiency –90 % for FY 2006 (maximum during FY 2001-05) in FY 2001 

and assumed to increase by 1% every year (91% in FY 2007 and so on). 


Assessments growth – 5 % per annum, with a cap on the number of assessments at 4,000 

Average tax per assessment - Rs. 1552 per assessment, in line with the average in FY 2005. 


Water Charges 

Water charges have been arrived at as a product of average water charges per connection and the 

number of connections. 

Assessments growth – 4.55 % per (in line with the CAGR over the last five years), with a cap 

on the number of assessments at 10,000. The base number of assessments has been taken as 

6131 assessments. 

Average tax per assessment - Rs. 701 per assessment, in line with the average in FY 2005. No 

revision has been assumed for the base case. 

Arrears collection efficiency – 40% for FY 2006 (maximum during FY 2001-05) in FY 2005 


Current collection efficiency –85 % for FY 2006 (maximum during FY 2001-05) in FY 2002 

and assumed to increase by 1% every year (86% in FY 2007 and so on). 


Assessments growth – 5 % per annum (in line with the CAGR over the last five years), with a 

cap on the number of assessments at 10,000. 

Average tax per assessment - Rs. 701 per assessment, in line with the average in FY 2005, 

with a tariff increase of 5% every three years. 


Other income 

The base amount for all the items listed below are taken on the average of the past five years. The 

other assumptions made in case of other income is summarised in the table below: 


Item 

Exhibit 6.1 Assumptions for other income 

Base Amount 

(in Lakhs) 

Growth 

(CAGR %) 

Assumptions 

Sewerage Charges 42.69 214.4% CAGR of 4% on the base amount for FY 2005. 

Service Charges & Fees 34.44 Negative 

Growth 

CAGR of 3.7% on the base amount for FY 2005. 

Other income 54.63 Negative 

Growth 

CAGR of 1% on the base amount for FY 2005. 

Assigned Revenue 103.39 1.5% CAGR of 5% on the base amount for FY 2005. 

Devolution Fund 161.28 

(average of 

last 3 years) 

19.6% CAGR of 5% on the base amount for FY 2005. 

Grants & Contributions 2.34 Negative 

Growth 

CAGR of 5% on the base amount for FY 2005. 

Assumptions - Expenditure 

The major assumption adopted for projection in revenue expenditure based on the past performance is 

as follows: 

Item 

Base Amount 

(in Lakhs) 

Exhibit 6.2 Expenditure 

Growth 

(CAGR %) 

Assumptions 

Salaries 249.03 Negative 

Growth 

CAGR of 3% with cost of FY 2005 as the base 

Operating Expenses 80.80 12.9% The expenditure has been assumed as 2% of the 

gross block of fixed assets (in line with the average 

over the last five years). An inflation of 5% has also 

been considered. 

Administrative Expenses 30.69 32.1% The growth rate has been assumed at a nominal rate 

of 5% and has been applied on the base amount, 

which is for the year 2004-2005. 

Depreciation - - Expenditure assumed as 1% of the gross block of 

fixed assets 

Finance Expenses - - Refer 6.2.3 below. 

Assumptions - Assets and liabilities 

Since figures for the year 2004-05 were not given, the figures for the year 2003-04 were taken as the 

figures for the same. The major assumption adopted for projection of assets and liabilities is given 

below: 


Other assets 

Exhibit 6.3 Assumptions - Assets 

Asset Head Assumptions 

Stock Account The closing balance as given in the last balance sheet by the ULB has 

been taken as the base figure for projection. It has been assumed that 

the stock will be 95% of the last year balance 

Debtors This head represents the debtors for the three heads property tax, 

profession tax and water charges. As they form the major portion of 

revenue their debtors also have been grouped separately. The 

calculation of debtors has been done based on the current demand 

under each category of income and the collection efficiency for each 

of the category 

Other Receivables The closing balance as given in the last balance sheet by the ULB has 

been taken as the base figure for projection. It has been assumed that 

other receivables will be 95% of the last year balance. 

Bank Account This account is the balance based on the cash flows for particular year 

The detailed projections for each of the 4 cases are provided in section 6.3. 

Loans 

All loans taken by the ULB are long-term. The ULB has a loan outstanding of Rs.1335.81 lakhs and 

the scheduling of these loans and interest has been taken into account in the FOP. 

S.No Lending Agency Amount 

of Loan 

Exhibit 6.4: Loan Statement as on 30.09.2005 (Rs in lakhs) 

Year of 

drawal 

Interest 

Rate % 

Repay 

ment 

period 

(years) 

Total loan repaid Outstandi 

ng loan 

amount 

Principal Interest Total 

1 Govt. Loan 76.65 1998 13.5% 20 35.76 7.16 42.92 40.89 

2 Roads & Drainage 17.79 1994 8.75% 20 8.66 20.53 29.19 9.01 

3 Construction of 

Shops 

20.06 1995 8.75% 15 8.12 22.65 30.77 11.96 

4 Special Roads 89.65 2003 9.05% 13 - 8.62 8.62 89.65 

5 Water Supply 367.06 2003 9.05% 15 - 74.30 74.30 367.06 

6 Water Supply 850.60 2004 8.20% 9 33.36 34.96 68.32 817.24 

Total 2571.48 85.90 168.22 254.12 1335.81 

In case of the TUFIDCO loans for Rs 1700 lakhs we have assumed the moratorium period of 3 years. 

New Loans 

The requirement of new loans is related to capital expenditure (Capex) the ULB wants to execute. The 

loans has been taken as 60% of the total Capex while the grants is assumed at 30% and the own 


contribution by the ULB is pegged at 10% of the total Capex. The terms of the new loans is assumed 

as follows: 

Other liabilities 

Exhibit 6.5 New loans 

Particulars Assumptions 

Rate of Interest on new loan 8% p.a. 

Repayment Period of new loan 15 years (inclusive of moratorium) 

Principal moratorium period 2 years 

Exhibit 6.6 Other Liabilities 

Liabilities Assumptions 

Grants Closing balance as given in FY 2005 has been taken as the base 

figure. Grants assumed at 30% of the Capital expenditure, which 

would be added to grants balance every year. 

Current Liabilities Closing balance as given in FY 2005 has been taken as the base 

figure. Current Liabilities assumed at 90% of the previous year’s 

balance. 

Accumulated depreciation Closing balance as given in FY 2005 has been taken as the base 

figure. Every years depreciation has been added to the balance of 

the accumulated depreciation 

Accumulated Surplus Closing balance as given in the FY 2005 has been taken as the 

base figure. Every year the cash surplus is added to this account 

while the contribution for the project from its own funds are 

deducted from the accumulated surplus. 

6.4 Financial projections 

6.4.1 Income and expenditure projections 

Exhibit 6.8 captures the Income and Expenditure projections for FY 2006-15 with potential 

improvements and sustainable borrowings. 


Exhibit 6.8 Income and Expenditure projections 

Income 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 

Property Tax 142.16 146.43 150.82 155.34 160.00 164.80 169.75 174.84 180.08 185.49 

Profession Tax 10.30 11.13 12.02 12.98 14.02 15.14 16.35 17.66 19.07 20.60 

Water Charges 46.70 49.04 51.49 54.07 56.77 59.61 62.59 65.72 69.00 72.45 

Sewerage Charges - 

- 60.00 63.00 66.15 69.46 72.93 76.58 80.41 84.43 

Service Charges & Fees 29.43 30.32 31.23 32.16 33.13 34.12 35.15 36.20 37.29 38.40 

Sale & Hire Charges - 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other Income 65.20 67.16 69.18 71.25 73.39 75.59 77.86 80.19 82.60 85.08 

Assigned Revenue 91.58 94.33 97.16 100.08 103.08 106.17 109.36 112.64 116.02 119.50 

Devolution Fund 82.02 90.22 99.24 109.17 120.08 132.09 145.30 159.83 175.81 193.39 

Grants & Contributions - 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total Income 

Expenditure 

467.41 488.62 571.13 598.04 626.62 656.98 689.28 723.65 760.28 799.34 

Salaries 267.69 281.07 295.13 309.88 325.38 341.65 358.73 376.67 395.50 415.27 

Operating Expenses 128.96 135.41 142.18 149.29 156.75 164.59 172.82 181.46 190.53 200.06 

Repairs & Maintenance - 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Programme Expenses 3.14 3.29 3.46 3.63 3.81 4.00 4.20 4.41 4.64 4.87 

Administrative Expenses 11.84 12.43 13.06 13.71 14.39 15.11 15.87 16.66 17.50 18.37 

Finance charges 124.93 115.45 106.57 98.35 91.63 86.31 81.44 77.09 73.24 45.77 

Depreciation 81.15 81.15 81.15 82.44 85.30 89.67 95.51 102.92 111.96 122.71 

Total Expenditure 617.71 628.81 641.54 657.30 677.26 701.33 728.57 759.22 793.36 807.04 

Operating Surplus (150.30) (140.19) (70.41) (59.26) (50.64) (44.35) (39.30) (35.56) (33.08) (7.71) 

Cash Operating Surplus (69.15) (59.04) 10.74 23.18 34.66 45.32 56.22 67.36 78.88 115.00 

6.5 Key results 

While the borrowing capacity computed as the minimum of NPV of operating surplus, 30% of 

revenues during the projection period works out to Rs. 556 lakh, actual projections reveal that 

Mayiladuthurai faces a severe Debt Service Coverage issue even at this level of borrowing. This is 

due to the strain of repayments on its existing loans which stood at nearly 13 crore in FY 2006. 

Therefore, Mayiladuthurai borrowing capacity is negligible even with improvements. 

Exhibit 6.9 Summary of key results 

Summary of FOP results 



Revenue CAGR % - FY 2006-15 6.14 

Avg. Op. Surplus (Rs. Lakh) (53) 

Avg. Cash Operating Surplus 

Avg. TE (excluding depreciation)/TR 

41 

(%) 94% 

Average Debt Servicing/TR (%) 26% 

Borrowing Capacity as a minimum of NPV of 

NPV of 50% of Cash Surplus (without 

new loans) 80 

NPV of 30% of Revenue 1,239 

Borrowing Capacity 80 

Investment Capacity 612 

Investment Requirement 3,767 

IC/ IR 16% 


Some drastic measures including restructuring of its existing loans is required for Mayiladuthurai 

municipality to improve its investment capacity. Otherwise, MyM would need to utilize Grants from 

schemes like UIDSSMT and IHSDP to undertake its investments. Further, MyM could also consider 

involvement of private sector in implementing remunerative projects including bus-stands, markets 

and slaughter houses etc. 


Disclaimer: The report is based on information collected by IMaCS from sources believed to be 

reliable. While all reasonable care has been taken to ensure that the information contained herein 

is not untrue or misleading, IMaCS is not responsible for any losses that the client may incur 

from the use of this report or its contents. The assessment is based on information that is currently 

available and is liable to change. The analysis that follows should not be construed to be a credit 

rating assigned by ICRA’s Rating Division for any of the company’s debt instruments. IMaCS is 

not a legal firm and our advice/recommendations should not be construed as legal advice on any 

issue. 

For information about this report, please contact: 

ICRA Management Consulting Services Ltd 

Building No. 8, 

2nd Floor, Tower - A, 

DLF Cyber City, Phase - II, 

Gurgaon - 122002 

Ph : 91 124 4545 800 

Fax: 91 124 4545 850 

Conversion of CCP to BP - Mayiladuthurai Municipality

City Corporate Plan - Municipal

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