city corporate cum business plan - Municipal

SATHYAMANGALAM MUNICIPALITY 

CITY CORPORATE CUM BUSINESS PLAN 

FINAL REPORT 

FEBRUARY – 2010

Disclaimer: 

TNUIFSL 

City Corporate cum Business Plan for Sathyamangalam 

The contents of this report are based primarily on discussions with Sathyamangalam 

Municipality and information, secondary data /Reports available with the Municipality 

including our discussions with the Operations Working Group (OWG) representing stake 

holders of the city. 

Based on the available data and information provided to us, M/s Darashaw & Company Pvt. 

Ltd has prepared the Final report. 

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CITY CORPORATE CUM BUSINESS PLAN 

FINAL REPORT 

FEBRUARY – 2010

Table of Contents… 

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1 PROJECT BACKGROUND....................................................................................................................... 1-1 

1.1 CITY CORPORATE CUM BUSINESS PLAN ................................................................................................ 1-1 

1.2 APPROACH AND METHODOLOGY ............................................................................................................ 1-2 

1.2.1 Inception Stage................................................................................................................................ 1-4 

1.2.2 Interim Stage ................................................................................................................................... 1-7 

1.2.3 Draft Final stage...........................................................................................................................1-10 

1.2.4 Final Report ..................................................................................................................................1-14 

2 TOWN PROFILE......................................................................................................................................... 2-1 

2.1 REGIONAL SETTING AND NETWORK LINKAGES....................................................................................... 2-1 

2.2 DEMOGRAPHY.......................................................................................................................................... 2-3 

2.3 SOCIAL CHARACTERISTICS...................................................................................................................... 2-5 

2.3.1 Social Composition......................................................................................................................... 2-5 

2.3.2 Gender Ratio ................................................................................................................................... 2-5 

2.3.3 Literacy levels ................................................................................................................................. 2-5 

2.4 PHYSICAL CHARACTERISTICS ................................................................................................................. 2-6 

2.4.1 Topography ..................................................................................................................................... 2-6 

2.4.2 Geology and soil type ..................................................................................................................... 2-6 

2.4.3 Climate and Rainfall....................................................................................................................... 2-6 

3 PHYSICAL PLANNING AND GROWTH MANAGEMENT.............................................................. 3-1 

3.1 LAND USAGE IN SATHYAMANGALAM..................................................................................................... 3-1 

3.2 PROPOSED LAND USE FOR THE YEAR 2011 ............................................................................................ 3-2 

3.3 DEVELOPMENT POTENTIALS & CONSTRAINTS ....................................................................................... 3-3 

3.3.1 Development potentials .................................................................................................................. 3-3 

3.3.2 Development Constraints ............................................................................................................... 3-3 

4 ECONOMIC DEVELOPMENT ................................................................................................................ 4-1 

4.1 ECONOMIC BASE OF THE TOWN............................................................................................................... 4-1 

4.1.1 Occupational pattern...................................................................................................................... 4-1 

4.2 INDUSTRIES IN SATHYAMANGALAM ....................................................................................................... 4-3 

4.3 TOURISM POTENTIAL ............................................................................................................................... 4-3 

5 PHYSICAL INFRASTRUCTURE ............................................................................................................ 5-1 

5.1 WATER SUPPLY........................................................................................................................................ 5-1 

5.1.1 Water Supply Sources..................................................................................................................... 5-1 

5.1.2 Water Supply System....................................................................................................................... 5-1 

5.1.3 Water Availability ........................................................................................................................... 5-3 

5.1.4 Service adequacy............................................................................................................................. 5-3 

5.2 SEWERAGE AND SANITATION.................................................................................................................. 5-4 

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5.2.1 Sewerage system in Sathyamangalam ........................................................................................... 5-4 

5.2.2 Proposed Under Ground Sewerage Scheme................................................................................. 5-4 

5.2.3 Sanitation facilities in Sathyamangalam....................................................................................... 5-4 

5.3 STORM WATER DRAINAGE...................................................................................................................... 5-5 

5.3.1 Service adequacy............................................................................................................................. 5-5 

5.4 SOLID WASTE MANAGEMENT................................................................................................................. 5-5 

5.4.1 Generation and collection.............................................................................................................. 5-5 

5.4.2 Disposal and treatment facilities ................................................................................................... 5-7 

5.4.3 Adequacy of services....................................................................................................................... 5-7 

5.5 TRAFFIC AND TRANSPORTATION............................................................................................................. 5-8 

5.5.1 Regional Network............................................................................................................................ 5-8 

5.5.2 City level road network................................................................................................................... 5-9 

5.5.3 Public Transport system in Sathyamangalam............................................................................... 5-9 

5.5.4 Bus Stand infrastructure................................................................................................................. 5-9 

5.6 STREET LIGHTING ..................................................................................................................................5-10 

5.6.1 Adequacy of services.....................................................................................................................5-11 

5.7 PROBLEMS AND ISSUES ..........................................................................................................................5-11 

6 SOCIO-ECONOMIC INFRASTRUCTURE ........................................................................................... 6-1 

6.1 HEALTH .................................................................................................................................................... 6-1 

6.2 EDUCATION .............................................................................................................................................. 6-2 

6.3 RECREATION ............................................................................................................................................ 6-2 

6.4 OTHER AMENITIES.................................................................................................................................... 6-3 

6.5 PROBLEMS AND ISSUES............................................................................................................................ 6-3 

7 SLUMS AND URBAN POVERTY ............................................................................................................ 7-1 

7.1 SLUMS IN SATHYAMANGALAM ............................................................................................................... 7-1 

7.1.1 Service provision in slum areas ..................................................................................................... 7-2 

7.2 URBAN POOR IN SATHYAMANGALAM..................................................................................................... 7-3 

7.3 PROBLEMS AND ISSUES............................................................................................................................ 7-4 

8 FINANCIAL STATUS................................................................................................................................. 8-1 

8.1 OVERVIEW................................................................................................................................................ 8-1 

8.2 FINANCIALS (REVENUE FUND)................................................................................................................ 8-2 

8.3 ANALYSIS OF INCOME.............................................................................................................................. 8-5 

8.3.1 Own Sources.................................................................................................................................... 8-5 

8.3.2 External Sources ............................................................................................................................. 8-9 

8.4 ANALYSIS OF EXPENDITURE.................................................................................................................... 8-9 

8.4.1 Personnel Costs:-..........................................................................................................................8-10 

8.4.2 Operating Expenses / Repairs & Maintenance...........................................................................8-10 

8.4.3 Administrative Expenses:-............................................................................................................8-11 

8.5 SOURCE & USE OF FUNDS .....................................................................................................................8-12 

8.6 FINANCIALS (WATER SUPPLY & DRAINAGE FUND).............................................................................8-12 

8.7 FINANCIALS (ELEMENTARY EDUCATION FUND)..................................................................................8-15 

8.8 FINANCIALS CONSOLIDATED.................................................................................................................8-17 

8.9 DEMAND, COLLECTION AND BALANCE FOR THE PAST 5 YEARS .........................................................8-18 

8.10 OUTSTANDING LOAN AND NON-DEBT LIABILITY..............................................................................8-19

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9 INSTITUTIONAL FRAMEWORK .......................................................................................................... 9-1 

9.1 INSTITUTIONAL STRUCTURE.................................................................................................................... 9-1 

10 DEMAND ASSESSMENT.......................................................................................................................10-1 

11 CONSULTATION WITH OWG............................................................................................................11-1 

11.1 OPERATIONAL WORKING GROUP........................................................................................................11-1 

11.2 PRIORITY BASED ON OWG OPINION SURVEY .....................................................................................11-8 

11.2.1 Physical infrastructure priority .................................................................................................11-8 

11.2.2 Social infrastructure priority .....................................................................................................11-9 

11.2.3 Environmental Issues................................................................................................................11-10 

12 S W O T ......................................................................................................................................................12-1 

13 CONSOLIDATED ISSUES.....................................................................................................................13-1 

14 SECTORAL STRATEGY AND ACTION PLAN...............................................................................14-1 

14.1 SECTORAL STRATEGY..........................................................................................................................14-1 

15 CAPITAL INVESTMENT PLAN..........................................................................................................15-1 

15.1 CIP FOR PHYSICAL INFRASTRUCTURE SECTORS.................................................................................15-2 

15.1.1 Water Supply...............................................................................................................................15-3 

15.1.2 Sewerage and Sanitation............................................................................................................15-4 

15.1.3 Storm Water Drainage................................................................................................................15-6 

15.1.4 Solid Waste Management...........................................................................................................15-7 

15.1.5 Roads, Traffic and Transportation ............................................................................................15-8 

15.1.6 Street Lighting...........................................................................................................................15-11 

15.1.7 Socio-economic Infrastructure.................................................................................................15-12 

15.2 CONSOLIDATED CAPITAL INVESTMENT PLAN..................................................................................15-14 

15.2.1 First Phase Investment Plan (2008-09 to 2012 – 13).............................................................15-14 

15.2.2 Second Phase Investment Plan (2013-14 to 2017 – 18).........................................................15-16 

15.2.3 Third Phase Investment Plan (2018-19 to 2022 – 23)............................................................15-18 

16 RISK ANALYSIS......................................................................................................................................16-1 

17 ASSET MANAGEMENT PLAN............................................................................................................17-1 

17.1 LIST OF ASSETS:...................................................................................................................................17-1 

17.2 OPERATIONS AND MAINTENANCE.......................................................................................................17-4 

17.2.1 O&M of social infrastructure assets..........................................................................................17-4 

17.2.2 O&M Physical Infrastructure....................................................................................................17-7 

17.3 AMP - RECOMMENDATIONS .............................................................................................................17-11 

17.3.1 Asset Register............................................................................................................................17-11 

17.3.2 Asset Value and Life Cycle Management................................................................................17-11 

17.3.3 Sustainability.............................................................................................................................17-11 

17.3.4 Integration of Technical and Financial Plans........................................................................17-12 

17.3.5 Condition Assessment Survey (CAS) .......................................................................................17-12 

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17.3.6 Risk Assessment.........................................................................................................................17-12 

17.3.7 Monitoring and Evaluation......................................................................................................17-12 

17.3.8 Budgeting...................................................................................................................................17-13 

17.3.9 Training in Database management .........................................................................................17-13 

18 REFORMS AND RESOURCE MOBILIZATION .............................................................................18-1 

18.1 OVERVIEW............................................................................................................................................18-1 

18.2 REFORM MEASURES FOR SATHYAMANGALAM MUNICIPALITY .........................................................18-2 

18.2.1 Financial & Accounting reforms ...............................................................................................18-2 

18.2.2 Institutional Reforms ..................................................................................................................18-7 

18.2.3 Reforms in Physical Infrastructure..........................................................................................18-12 

18.3 ADDITIONAL RESOURCE MOBILIZATION..........................................................................................18-16 

18.3.1 Additional revenue from Remunerative assets........................................................................18-16 

18.3.2 Advertisement & Parking Fees ................................................................................................18-17 

19 FINANCIAL OPERATING PLAN........................................................................................................19-1 

19.1 BACKGROUND- NEED FOR AN FOP .....................................................................................................19-1 

19.2 FINANCIAL SUSTAINABILITY...............................................................................................................19-3 

19.2.1 Base Case Scenario ....................................................................................................................19-3 

19.2.2 Full project Scenario ..................................................................................................................19-3 

19.2.3 Sustainable Project Scenario.....................................................................................................19-4 

19.3 ASSUMPTIONS FOR FOP ......................................................................................................................19-5 

19.3.1 Revenue Income ..........................................................................................................................19-5 

19.3.2 Revenue Expenditure ................................................................................................................19-10 

19.3.3 Funding Mechanism .................................................................................................................19-11 

19.4 OUTCOME OF FINANCIAL OPERATING PLAN ..................................................................................19-12 

19.4.1 Base Case Scenario (“Business as Usual Scenario”)............................................................19-12 

19.4.2 Full Project Scenario WITHOUT Reforms.............................................................................19-13 

19.4.3 Full Project Scenario WITH Reforms .....................................................................................19-16 

19.4.4 Sustainable Investment Scenario WITH Reforms...................................................................19-19 

19.5 CONCLUSION......................................................................................................................................19-24 

19.6 RECOMMENDATIONS .........................................................................................................................19-28

List of Tables… 

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Table 2-A Population growth of Sathyamangalam.......................................................................................... 2-3 

Table 2-B Ward wise population of Sathyamangalam Municipality.............................................................. 2-4 

Table 2-C Social Composition .......................................................................................................................... 2-5 

Table 2-D Gender ratio of Sathyamangalam.................................................................................................... 2-5 

Table 2-E Literacy levels from the last three decades in Sathyamangalam ................................................... 2-6 

Table 3-A Land use in 1985 and 2001.............................................................................................................. 3-2 

Table 3-B Proposed Land Use and additional land required for the year 2011 ............................................. 3-2 

Table 4-A Occupational pattern 1981-2001 ..................................................................................................... 4-2 

Table 4-B Tourist spots around Sathyamangalam ........................................................................................... 4-3 

Table 5-A Water Supply system in Sathyamangalam ..................................................................................... 5-2 

Table 5-B Performance Indicators .................................................................................................................... 5-3 

Table 5-C Length of drains in Sathyamangalam.............................................................................................. 5-5 

Table 5-D Performance Indicators Regarding Storm water Drainage............................................................ 5-5 

Table 5-E Composition of waste generation .................................................................................................... 5-6 

Table 5-F Waste segregation and its quantity in Kgs Sathyamangalam ........................................................ 5-6 

Table 5-G Vehicles deployed for Secondary waste collection and disposal.................................................. 5-7 

Table 5-H Performance Indicators .................................................................................................................... 5-7 

Table 5-I Existing road details in Sathyamangalam ....................................................................................... 5-9 

Table 5-J Ward wise Street Light details in Sathyamangalam......................................................................5-10 

Table 5-K Performance Indicators regarding Street Lighting in Sathyamangalam.....................................5-11 

Table 6-A Health infrastructure in Sathyamangalam ...................................................................................... 6-1 

Table 6-B Educational facilities in Sathyamangalam...................................................................................... 6-2 

Table 7-A Slums in Sathyamangalam and the service provision.................................................................... 7-1 

Table 7-B Service provision in Slum areas ...................................................................................................... 7-2 

Table 7-C Ward wise BPL population in Sathyamangalam............................................................................ 7-3 

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Table 8-A Income & Expenditure Account (Revenue and Capital Fund)...................................................... 8-2 

Table 8-B Balance Sheet (Revenue and Capital Fund) ................................................................................... 8-4 

Table 8-C Property Tax Particulars................................................................................................................... 8-6 

Table 8-D Number of Assessments in Property Tax for the past 6 years....................................................... 8-7 

Table 8-E Professional Tax Particulars ............................................................................................................ 8-7 

Table 8-F : Income & Expenditure Account (Water Supply & Drainage Fund) .........................................8-13 

Table 8-G : Balance Sheet (Water Supply & Drainage Fund) ......................................................................8-14 

Table 8-H : Income & Expenditure Account (Elementary Education Fund)...............................................8-15 

Table 8-I : Balance Sheet (Elementary Education Fund) ..............................................................................8-16 

Table 8-J : Consolidated Financials of the three Funds.................................................................................8-17 

Table 8-K: DCB for the Past 5 years ..............................................................................................................8-18 

Table 8-L : Outstanding Loan and Non-Debt Liability ................................................................................8-19 

Table 9-A : The Staff strength of the Sathyamangalam Municipality............................................................ 9-2 

Table 10-A Demand Supply Gap Analysis for Physical Infrastructure........................................................10-1 

Table 10-B : Demand Assessment for Socio-Economic Infrastructure........................................................10-3 

Table 11-A: Suggestions and projects ............................................................................................................11-2 

Table 13-A: Consolidated Issues.....................................................................................................................13-1 

Table 14-A Action Plan for future development of the town........................................................................14-1 

Table 15-A : Consolidated Sector wise Capital Investment requirements...................................................15-1 

Table 15-B - Project List and Budget Estimates for Water Supply Works..................................................15-3 

Table 15-C Project List and Budget Estimates for Sewerage and Sanitation Works ..................................15-5 

Table 15-D Project List and Budget Estimates for Storm Water Drainage Works .....................................15-6 

Table 15-E Project List and Budget Estimates for Solid Waste Management Works.................................15-8 

Table 15-F Project List and Budget Estimates for Roads, Traffic and Transportation Works ..................15-9 

Table 15-G Project List and Budget Estimates for Street Lighting Works ................................................15-11 

Table 15-H Project List and Budget Estimates for Socio-Economic Infrastructure..................................15-12 

Table 15-I First Phase Capital Investment Plan for Sathyamangalam Municipality................................15-14

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Table 15-J First Phase Capital Investment Plan for Sathyamangalam Municipality (after considering 

escalation cost) ...............................................................................................................................................15-15 

Table 15-K Second Phase Capital Investment Plan for Sathyamangalam Municipality...........................15-16 

Table 15-L Second Phase Capital Investment Plan for Sathyamangalam Municipality (after considering 


Table 15-M Third Phase Capital Investment Plan for Sathyamangalam Municipality.............................15-18 

Table 15-N Third Phase Capital Investment Plan for Sathyamangalam Municipality (after considering 


Table 17-A: Details of various social & physical infrastructure assets........................................................17-2 

Table 17-B: O&M and Revenue generation...................................................................................................17-4 

Table 17-C Key assumptions for forecasting O & M for the existing and proposed assets........................17-7 

Table 17-D O & M for existing physical Infrastructure assets .....................................................................17-9 

Table 17-E O & M for proposed capital works............................................................................................17-10 

Table 18-A: Collection Efficiency of key revenue sources...........................................................................18-3 

Table 18-B: Efficiency parameters of key taxes and water charges .............................................................18-3 

Table 18-C: Reforms in property Taxes .........................................................................................................18-4 

Table 18-D: Accounting Reforms...................................................................................................................18-6 

Table 18-E: Current Areas of Privatization/outsourcing ...............................................................................18-9 

Table 18-F: Possible areas of privatization/outsourcing..............................................................................18-10 

Table 18-G: Online Modules.........................................................................................................................18-11 

Table 18-H: Reforms in Physical Infrastructure ..........................................................................................18-12 

Table 18-I : Income from Remunerative social assets.................................................................................18-16 

Table 19-A : Key assumptions for forecasting income from Property Taxes..............................................19-6 

Table 19-B: Key assumptions for forecasting income from Water Charges................................................19-6 

Table 19-C : Key assumptions for forecasting income from Sewerage Charges.........................................19-7 

Table 19-D : Assumption for Income .............................................................................................................19-8 

Table 19-E: Assumption for Revenue Expenditure .....................................................................................19-10 

Table 19-F: Key assumptions for forecasting future debt obligations........................................................19-10 

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Table 19-G : Financing Pattern for Proposed projects.................................................................................19-11 

Table 19-H: Financial Operating Plan - No Projects,No REFORMS- Base Case Scenario 

TABLE 19-I : Full Project Cash Flow , Full Projects WITHOUT REFORMS - As per Prudent Financial 

norms 

Table No 19 J. : Financial Operating Plan- With FULL PROJECT WITHOUT REFORMS- As per Prudent 

Financial Norms 

Table No 19 K : Calculation of Debt Service Coverage Ratio (DSCR) With FULL PROJECT WITHOUT 

REFORMS- As per Prudent Financial Norms 

Table No 19 L: Full Project Cash Flow With FULL PROJECT WITHOUT Reforms with additional 

external support 

Table No 19 M : Financial Operating Plan- With FULL PROJECT WITHOUT Reforms with additional 

external support 

Table No 19 N : Calculation of Debt Service Coverage Ratio (DSCR) With FULL PROJECT WITHOUT 

REFORMS with additional external support 

TABLE 19 O: FULL PROJECT SCENARIO WITHOUT REFORMS -FUNDING REQUIREMENTS AS 

PER PRUDENT FUNDING NORMS VS. FUNDING POSSIBILITIES BASED ON BORROWING 

CAPACITY 

Table No 19 P : Full Project Cash Flow With FULL PROJECT WITH REFORMS - As per Prudent 


Table No 19 Q. : Financial Operating Plan -With FULL PROJECT WITH REFORMS - As Per Prudent 

Financial norms 

Table No 19 R : Calculation of Debt Service Coverage Ratio (DSCR) With FULL PROJECT WITH 

REFORMS -As per Prudent financial Norms 

Table No 19 S: Full Project Cash Flow With FULL PROJECT WITH REFORMS with additional external 

support 

Table No 19 T : Financial Operating Plan - With FULL PROJECT WITH REFORMS with additional 

external support

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Table No 19 U : Calculation of Debt Service Coverage Ratio (DSCR) With FULL PROJECT WITH 

REFORMS with additional external support 

Table 19 V: FULL PROJECT SCENARIO WITH REFORMS -Funding requirements as per Prudent 

Funding Norms vs. Funding Possibilities based on borrowing capacity 

Table 19 W Capital Investment Plan- Sustainable Scenario 

Table 19-X: List of projects not considered for Sustainable Scenario 

Table 19 Y -Full Project Cash Flow of Identified New projects in Sustainable Scenario- As per Prudent 

Financial norms 

Table No.19 Z : Financial Operating Plan - Sustainable Scenario - Prudent Financial Norms 

Table No 19 AA : Calculation of Debt Service Coverage Ratio (DSCR) Sustainable Scenario- Prudent 


Table 19 AB - Full Project Cash Flow of Identified New projects in Sustainable Scenario- Additional 

External Support 

Table No.19 AC : Financial Operating Plan - Sustainable Scenario- Additional External Support 

Table No 19 AD : Calculation of Debt Service Coverage Ratio (DSCR) Sustainable Scenario- Additional 

extermal support 

Table 19 AE: SUSTAINABLE INVESTMENT SCENARIO WITH REFORMS -Funding based on prudent 

financial norms Vs Funding possibility based on borrowing capacity 

Table 19AF: - Comparative statement for the full project scenario vis-à-vis sustainable scenario 

Table 19 AG: FULL PROJECT SCENARIO AND SUSTAINABLE SCENARIO -Funding pattern based 

on prudent financial norms 

Table 19 AH: FULL PROJECT SCENARIO AND SUSTAINABLE SCENARIO -Funding pattern based 

on borrowing capacity 

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List of Figures… 

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Figure 1-1: Approach and Methodology for City Corporate cum Business Plan .......................................... 1-3 

Figure 1-2 Rapid Urban Assessment ................................................................................................................ 1-5 

Figure 1-3 Presentation of the Inception report before the Review Committee ............................................ 1-5 

Figure 1-4 Strategic and Capital Investment Plan........................................................................................... 1-8 

Figure 1-5 Presentation of the Interim report before the Review Committee................................................ 1-9 

Figure 2-1: Regional setting and Network Linkages - Sathyamangalam....................................................... 2-2 

Figure 4-1 Occupational pattern and trend 1981-2001.................................................................................... 4-2 

Figure 5-1 Location of Sathyamangalam and its Regional Network Linkage............................................... 5-8 

Figure 8-1 Income & Expenditure Account (Revenue Fund) ......................................................................... 8-2 

Figure 8-2: Break up of Income of Sathyamangalam Municipality for FY 2006-07 (Revised Budget 

Estimates).................................................................................................................................................. 8-5 

Figure 8-3 Break up of Expenditure of Sathyamangalam Municipality for FY 2006-07 (Revised Budget 

Estimates)................................................................................................................................................8-10 

Figure 8-4 : Source and Use of Funds of Sathyamangalam Municipality as on FY 2005-06.....................8-12 

Figure 8-5 : Income & Expenditure Account (Water Supply & Drainage Fund) ........................................8-12 

Figure 8-6 : Income & Expenditure Account (Elementary Education Fund) ..............................................8-15 

Figure 9-1 Organization chart of Sathyamangalam Municipality................................................................... 9-1 

Figure 11-1 Sector prioritization by the Stakeholders (Physical Infrastructure) .........................................11-9 

Figure 11-2 Sector prioritization by the Stakeholders (Social Infrastructure) .............................................11-9 

Figure 11-3 Sector prioritization by the Stakeholders (Environmental Issues) .........................................11-10 

Figure 11-4 Consultation with OWG members in Sathyamangalam .........................................................11-10 

Figure 11-5 OWG consultation for Report Finalisation ..............................................................................11-11 

Figure 15-1 Sector wise percentage share ......................................................................................................15-2 

Figure 19-1 Reforms Implementation Schedule 

Figure 19-2 Project Implementation Schedule

Annexure…………………………. 

Annexure I Population Projection 

Annexure II Norms Vs Current Status 

Annexure III Urban Performance Indicators 

Annexure IV Salaries 

Annexure V Vacant Land List 

Annexure VI OWG Attendance 

Annexure VII Draft Memorandum of Understanding 

Annexure VIII Council Resolution 

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Acronyms…. 

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AMP : Asset Management Plan 

ASI : Archeological Survey of India 

BPL : Below Poverty Line 

BOT : Build-Operate-Transfer 

BOOT : Build-Own-Operate-Transfer 

BOLT : Build-Own-Lease-Transfer 

BT : Bitumen Tar 

CAGR : Compounded Annual Growth Rate 

CC : Cement Concrete 

CIP : Capital investment Plan 

CCBP : City Corporate Cum Business Plan 

CMA : Commissionerate of Municipal Administration 

CMWSSB : Chennai Metro Water Supply & Sewerage Board 

CPHEEO : Central Public Health & Environmental Engineering Organisation 

DPR : Detailed Project Report 

ESR : Elevated Storage Reservoir 

ESA : Environmental and Social Assessment 

FAS : Financial Accounting System 

FOB : Foot Over Bridge 

FOP : Financial Operating Plan 

FY : Financial Year 

GIS : Geographical Information System 

Govt. : Government 

G.O : Government Order 

GSR : Ground Level Reservoir 

HH : House hold 

HP : Horse Power 

HSC : House Hold Connections 

HSS : Higher Secondary School 

HUDCO : Housing and Urban Development Corporation 

IHSDP : Integrated Housing & Slum Development Program 

IDSMT : Integrated Development of small & Medium Towns 

IUDP : Integrated Urban Development Project 

Kg : Kilo Gram 

Km : Kilometer 

JNNURM : Jawaharlal Nehru National Urban Renewal Mission 

Sq.Km : Square Kilometer 

Lpcd : Litre per capita per day 

LL : Lakh Litre 

LIC : Life Insurance corporation of India 

OHT : Over Head Tanks 

m : Meter 

m2 : Square Meter

m3 : Cubic Meter 

MIS : Management Information System 

Mld : Million litres per day 

MOA : Memorandum of Association 

mm : Millimeter 

MUDF : Municipal Urban Development Funds 

MUDP : Madras Urban Development Project 

NA : Not Available/Not Applicable 

NGO : Non Government Organisation 

NH : National Highway 

NHAI : National Highway Authority of India 

O&M : Operations and Maintenance 

OWG : Operations Woking group 

PF : Public Fountains 

PPP : Public Private Participation 

PSP : Private Sector Participation 

PWD : Public Works Department 

ROB : Road Over Bridge 

Sq ft : Square Feet 

Sq Km : Square Kilometer 

SC/ST : Scheduled Castes/Schedule Tribes 

SHG : Self Help Group 

SH : State Highway 

SWD : Storm Water Drains 

SWM : Solid Waste Management 

TOR : Terms of Reference 

TNUDP : Tamil Nadu Urban Development Project 

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TNUIFSL : Tamil Nadu Urban Infrastructure Financial Services Limited 

TUFIDCO : 

Tamil Nadu Urban Finance & Infrastructure Development Corporation 

Limited 

TWAD : Tamil Nadu Water Supply & Drainage Board 

UDPFI : Urban Development Planning Formulation and Implementation 

UIDSSMT : 

Urban Infrastructure Development Scheme for Small & Medium 

Towns 

UGD : Under Ground Sewerage 

ULB : Urban Local Bodies 

UT : Union Territory 

WBM : Water Bound Macadam 

WFPR : Work Force Participation Rate 

WS : Water Supply 

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1 PROJECT PROJECT PROJECT BACKGROUND 

BACKGROUND 

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Government of Tamilnadu and The World Bank as a partner has been involved in Urban 

Reform program in Tamilnadu through Tamilnadu Urban Development Project – TNUDP- 

I, TNUDP-II, TNUDP-III (in progress). Government of Tamilnadu is now implementing 

TNUDP-III with focus on furthering the urban reforms initiated under TNUDP-II. 

As a financial intermediary, TNUIFSL under TNUDP-III intends to assist 

Sathyamangalam, Bhavani, Gobichettipalayam, Rasipuram, Komarapalayam, Idappadi, 

Attur, Dharapuram, Kulithalai, Manapparai, Thuraiyur municipality in strengthening and 

improving its financial position for effective capital investment management and urban 

service delivery. These towns are having a good potential for immediate implementation 

of such financial reforms for which it is essential to formulate a City Corporate Cum 

Business Plan. Moreover, these municipalities have on their own defined their vision and 

identified certain projects to be implemented, for which pre-feasibility studies are to be 

carried out and a sustainable investment plan has to be prepared. 

In this regard, the task of preparation of City Corporate cum Business Plan for the 

aforesaid ULBs was awarded to Darashaw and Company Private Limited. This final report 

pertains to the City Corporate cum Business Plan for Sathyamangalam Municipality. 

1.1 City Corporate Cum Business Plan 

City Corporate cum Business Plan (CCBP) is an innovative approach and strategy that 

represents both a vision for the city and for the ULB organization as well as mission 

statements on how to materialize the vision. City Corporate cum Business Plan is 

considered as an important tool for governing the City, through a participatory and 

consultative process. CCBP tends to bring a systematic approach in the planning process 

through Citizen’s Participation. This helps the ULBs to identify the issues with clear 

vision and convert them into an action programme for Long, Medium and Short- term 

periods. 

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The process of CCBP has been initiated through identifying the basic issues/priorities and 

possible ways of achieving them through a consultative process. As a forward linking 

process, the stakeholders have made an attempt to assess the deficiency in the existing 

system and identified an ideal vision for future development. The stakeholders’ priorities 

have been established through a detailed consultation process. Based on this, an 

appropriate strategy has been drafted, adhering to the preferred standards as suggested by 

the stakeholders. Detailed corporate plan based on the financial status of the ULB has been 

prepared for implementation. 

One of the major focuses of CCBP is its importance attached in the preparation of 15-year 

Capital Investment Plan for the ULB. This has been carried out based on the priorities 

identified by the stakeholders in the context of long-term development and identification 

of priority investments, which has been phased based on the ULB’s infrastructure 

requirements and investment priority of the OWG members. 

The final report has been approved and passed by the Elected Representatives of the 

Municipal Council (Council Resolution enclosed). 

1.2 Approach and Methodology 

Evolving and conceptualizing a precise methodological framework is crucial as it guides 

the task of preparing the City Corporate cum Business Plan (CC & BP) in a phased and 

planned manner. The study methodology outlines the various stages and tasks carried out 

in the preparation of City Corporate cum Business Plan for Municipal Towns in Tamil 

Nadu. 

The whole exercise is divided into four stages, which are further subdivided into tasks and 

several sub-tasks or activities within them. Figure below shows the adopted study 

methodology and is followed by a brief description on each of the stages.

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Figure 1-1: Approach and Methodology for City Corporate cum Business Plan 

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1.2.1 Inception Stage 

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In the inception stage, both the Demand Assessment and the Rapid Urban Assessment 

for the municipal area was carried out. 

1.2.1.1 Demand Assessment 

RFP document specifies that the municipalities (allotted to Darashaw and Company 

Private Limited) have on their own defined their vision and identified certain projects 

to be implemented, for which pre-feasibility studies are to be carried out and a 

sustainable investment plan has to be prepared. 

Hence, this stage in essence assessed the demand for various projects proposed by the 

municipality and Investment Plan for such projects was reviewed. 

1.2.1.2 Rapid Urban Assessment 

Here, all the information collected by Secondary sources was analyzed to find out 

current development status at an urban area level. The Analysis included all the 

sectors mentioned below: 

• Urban Economic Development 

• Social assessment 

• Poverty reduction 

• Land use planning and Urban Management 

• Urban Infrastructure 

• Human resources and Institutional Issues 

• Financial management 

• Environmental Management 

• Social impact analysis

ANALYSING GROWTH DIRECTIONS 

Ecology & Resource 

Base 

Environmental 

Management 

Land use planning and 

Urban Management 

Infrastructure 

services 

Physical 

infrastructure 

Social 


Transportation 

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Figure 1-2 Rapid Urban Assessment 

Sectoral 

Situation 

Assessment 

Status assessment 

Demand Assessment and Rapid Urban assessment was approved and accepted 

by the Review Committee on 07 th January 2008. 

Socio- economic 

base 

Urban Economic 

Development 

Social 

assessment 

Poverty & Social 

issues 

Housing 

Human resources 

& Institutional 

issues 

Financial 

Management 

Demand supply gaps Sector wise 

issues 

Figure 1-3 Presentation of the Inception report before the Review Committee 

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The Suggestions given by the Review Committee during the meeting has been given 

as under. 

1.2.1.3 Suggestions of the Review Committee on the Inception 

Report 

Our initial assessment and findings during the Inception stage was presented before 

the Review Committee meeting held on 07.01.2008. The Review Committee’s inputs 

and comments on the Inception Report are given as under: 

1. The consultants were requested to do stakeholder consultations to get 

demands from public for identifying infrastructure gaps. 

2. The consultants were requested to do a SWOT analysis for every Municipality 

and accordingly fix up their vision statements and potentials for 

improvements. 

3. Apart from the basic infrastructure the consultants were requested to assess 

the demand for the social infrastructure such as municipal schools, burial 

ground, slaughter house etc. 

4. The consultants had identified projects implemented by municipality. It was 

also requested that the consultants should identify infrastructure requirements 

for total up liftment of the towns and accordingly classify under projects 

implemented by other departments. 

5. All the municipalities were requested to provide five years audited accounts 

and recent year’s un-audited accounts to the consultants. Accordingly the 

consultant was request to work out the financials. 

6. Integrated approach on plans may be considered by the consultants for all the 

possible services 

The consultants have considered all the important suggestions suggested by the 

Review Committee and included them in the Interim Report.

1.2.2 Interim Stage 

1.2.2.1 Strategic Plan 

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On the basis of the sectoral issues identified during rapid urban status assessment, the 

sectoral strategies were proposed and converted into Action plans and projects in 

liaison with the city vision developed by the municipality. Such projects have been 

phased on the basis of demand and OWG member’s priorities. 

During Strategic plan preparation; emphasis were given to Areas/ sectors for local 

Economic Development and poverty reduction. 

1.2.2.2 Capital Investment Plan 

The Consultant has worked out the cost of projects and financial requirements for 

meeting the demand for infrastructure and services. Urban agglomeration has been 

considered while working out the project costing for identified projects. 

1.2.2.3 Asset Management Plan 

Consultant has carried out the O&M costs for the services proposed and at the same 

time analyzed the impact on finances for existing and proposed Infrastructure projects. 

A detailed Asset Management Plan have also been prepared for the municipality 

1.2.2.4 Risk Analysis 

Consultant has carried out the risk analysis for the projects proposed by ULBs as well 

as for the projects identified in this assignment. 

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Ecology & 

Resource Base 

Environmental 

Management 

strategy 

Land use planning 

and Urban 

Management 

strategy 


services 

Physical 


strategy 

Social 


strategy 


strategy 

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Figure 1-4 Strategic and Capital Investment Plan 

All the aforesaid four tasks were covered in the Interim Stage report which was 

approved and accepted by the Review Committee in its two day meeting held on 

18th and 19th March 2008. 

Strategic Plan 

Projects & Phasing 

Capital Investment 

plan 

Socio- economic 

base 

Social development 

Strategy 

Economic 

development 

Strategy 

Slums & Urban 

poverty Reduction 

strategy 

Housing Strategy 

Strategies for 

Strengthening 

Urban Governance 

Municipal, Finance 

Strategy 

Emphasis for Economic Development and Poverty reduction

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Figure 1-5 Presentation of the Interim report before the Review Committee 

1.2.2.5 Suggestions of the Review Committee on the Interim 

Report 

The Review Committee during the aforesaid Interim meeting made some specific 

suggestions pertaining to Sathyamangalam Municipality to be addressed in the Draft 

Final Stage and the same is listed out below: 

1. The consultants were requested to prioritize the projects based on the demand 

for the project & demand from the stake holders and also have to consider the 

state policy and the financial capacity of the local body 

2. The consultants had mentioned in the report that the OWG will be formed, 

which will work towards identifying the issues, developing the strategies and 

finalize the capital investment plans. But it was found that stakeholder 

consultation was treated as OWG. Hence the consultants were requested to 

form the OWG and continuously interact with them towards effective 

completion of the assignment 

3. It was mentioned that the most of the projects identified were proposed under 

UIDSSMT. The consultants were requested to consider allocation to the state 

and to the local body for all the schemes and were requested to work out the 

project financials accordingly 

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4. In solid waste management sector the consultant has given provisions only for 

collection system and compost yard. However they were requested to make a 

provision for scientific sanitary landfill facility for all towns 

5. The consultant has proposed some of the remunerative projects in second and 

third phase. However if there is a demand for such remunerative projects, this 

may be implemented in the first phase as this may act as an additional source 

of income for the local bodies 

6. In Sathyamangalam Municipality the projects identified in the water supply 

sector are only improvements to internal distribution network. However the 

consultants were requested to analyze the capacity of source for future 

demand and if necessary a project may be proposed for source augmentation 

and transmission mains at various phases according to the requirement. 

7. The actual cost of the underground sewerage scheme in Sathyamangalam 

Municipality was increased; hence the consultants were requested to work out 

the financials based on the actual cost 

8. Wherever tourism potential is huge, the consultants can identify some of the 

tourism project which may also be implemented by tourism / other 

departments 

9. The consultant has to consider O&M for Underground sewerage system only 

after completion of the scheme 

The consultants have taken into consideration all the important suggestions suggested 

by the Review Committee and have included them in the Draft Final Report. 

1.2.3 Draft Final stage 

1.2.3.1 Financial Operating Plan (FOP) 

The Financial Operating Plan (FOP) assesses the financial strength of the municipality 

to implement the identified investments. The Financial Operating Plan (FOP) 

forecasts the municipal finances on the basis of certain assumptions on income and 

expenditure. The primary objective of the FOP is to ascertain the investment

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sustenance capacity of the municipality under different scenarios of revenue 

enhancement and expenditure control. 

The projected FOP under four broad scenarios have been worked out to highlight the 

importance of the reforms suggested to implement all identified projects required for 

the development of Sathyamangalam Town. 

The four broad scenarios under which FOP has been worked out for Sathyamangalam 

municipality are as under: 

1. Base case scenario (“Business as usual scenario”) - In this scenario “No New 

Projects” are to be implemented over the 15 year period and No reforms to be 

undertaken. 

2. Full Project Scenario without undertaking the Suggested Reforms 

3. Full Project Scenario with Full Reforms implementation 

4. Sustainable Investment Scenario 

1.2.3.2 Draft Memorandum of Association 

Consultants have prepared a draft Memorandum of Association between ULB and 

TNUIFSL. The draft MoA has also outlined the Identified projects with 

implementation schedule, Reform Agenda which needs to be carried out and suitable 

action plan for the same. 

1.2.3.3 Suggestions of the Review Committee on the Draft Final 

Report 

The Review Committee during the aforesaid meeting, made some specific suggestions 

pertaining to Sathyamangalam Municipality to be addressed in the Addendum for the 

Draft Final Report and the same is listed out below: 

1. The consultant informed that none of the municipalities had the capacity to 

implement all the identified projects even with the reforms proposed. In this 

regard, consultants were requested to analyze the sustainable investment 

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capacity of the local body and suggest the projects that can be taken with in 

the investment capacity and also to suggest alternative ways to implement the 

balance identified projects. 

2. The consultants were requested to analyze the impact of the reforms 

suggested on the financials of the local body and also to conduct the 

sensitivity for the same 

3. The consultant has suggested various reforms to be reached after certain 

period by the local bodies. However the consultants were asked to give the 

milestones for implementing the reforms, for intermittent period also. 

4. The consultants were requested to propose the Under Ground Sewerage 

Scheme based on the priorities already laid down by the Commissionarate of 

Municipal Administration, for which TNUIFSL will facilitate in obtaining the 

same. 

5. The consultants were requested to incorporate the provision for scientific 

sanitary landfill facility for all the local bodies 

6. The consultants were requested to work out year on year DSCR, average 

DSCR, minimum and maximum DSCR. 

7. The consultants were requested to include the existing loan while calculating 

DSCR 

8. The cost of the Underground Sewerage Scheme for Rasipuram, 

Gobichettipalayam, Sathyamangalam and Komarapalayam has increased, 

hence the consultants were requested to update the same and work-out the 

financials accordingly 

9. In Bhavani Municipality, the Commissioner pointed out that there is a slight 

difference in the assets given in the report and hence the consultants were 

requested to update the list of assets from the local body. 

10. In addition to the projects proposed in Bhavani, the Commissioner requested 

the consultants to incorporate the construction of compound wall in the head 

works and improvements to certain parks in the municipality. 

11. In addition to the projects proposed in Rasipuram, the Municipal Engineer 

requested the consultants to incorporate the construction of shops at the first 

floor and a shopping complex at Anna Nagar, which will fetch additional 

revenue to the local body.

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12. While converting Kulithalai from Panchayat to Municipality most of the 

assets were not transferred. Although these assets are within the municipal 

limits, these are owned by the Panchayat. As the development of the 

Kulithalai town vests partly with the Panchayat, the consultants were 

requested to consult the officials and the elected representatives of the 

Panchayat before finalizing the plan. 

1.2.3.4 Addendum to the Draft Final Report 

Based on the comments received on the Draft Final Report, an addendum to the Draft 

Final Report was prepared and the same was approved by the Review Committee. The 

Review Committee made some suggestions to be incorporated in the Final Report and 

the same is listed below: 

The following are the salient points discussed. 

1. The consultants were requested to incorporate the additional projects in 

consultation with the local body. 

2. The consultants were requested to discuss the reforms suggested with the 

Council. 

3. The consultants were requested to prepare a comparative statement for the full 

project scenario vis-à-vis sustainable scenario. 

4. The consultants were requested to address the requirement of Wind Mills for 

Dharapuram Municipality. 

5. In some of the towns the consultants has decreased the ULB contribution in 

the scenarios after implementing reforms, which may be addressed. 

6. The Consultants were requested to provide justification for projects altered for 

the sustainable investment scenario. 

7. The Consultants were requested to high light the requirement of Common 

Effluent Treatment Plant for Komarapalayam Municipality in consultation 

with the Local Body. 

The Draft Final Report was approved by the Review Meeting held on 16 th and 

17 th September 2008. 

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1.2.4 Final Report 

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The final stage is the preparation of final report covering all the above stages 

incorporating the suggestions and modifications given by the Review Committee & 

also the OWG members in the meeting held on 19 th December 2008.

2 TOWN TOWN PROFILE 

PROFILE 

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Sathyamangalam is a city and a municipality in Erode district in the Indian state of 

Tamil Nadu. Sathyamangalam was formerly part of Coimbatore District, but became 

part of Erode District when the district was constituted in 1979. Sathyamangalam is 

also the Headquarters for Sathyamangalam Taluk. The Municipality includes 

Sathyamangalam, Varadhampalayam, Kottuveerampalayam and Rangasamudram 

Revenue Villages, having an extent of 29.24 Sq.Km. Population of the town as per 

2001 census is 33,748. 

Sathyamangalam town is situated on the southern side of Western ghats and lies close 

to the border of the adjoining Karnataka State. The town lies in 11 0 30’ northern 

latitude and 77 0 14’ eastern longitude. The nearby Bhavanisagar Dam, a picnic spot 

and Bannari Mariamman Temple, a Pilgrim Centre, both attract people and tourists all 

the year round. There is also a heavy movement of people to Karnataka State, 

especially to Mysore and Kollegal through this town. 

Box No - 01: Growth of Sathyamangalam Municipality 

The town was upgraded as a third Grade Municipality from the status of Town 

Panchayat on 17.1.1970, as per G.O.Ms.No. 58 RDLS Dept. dated 12.1.70, and 

subsequently upgraded as a Second grade Municipality on 1.4.77 as per G.O.Ms.No. 

642 RDLA Dept. dated 15.4.77. It is currently functioning as a First Grade Municipality 

as per G.O.Ms.No. 855, MAWS Dept., Dated 22.5.98. 

2.1 Regional setting and network linkages 

Sathyamangalam lies on north and south banks of the Bhavani River, a tributary of the 

River Cauveri. The town is situated at a distance of 65 kms from Erode linked with 

State Highway (SH 15) .The Coimbatore Mysore National Highway (NH 209) passes 

through this town which connects Samraj nagar and Mysore in neighbouring 

Karnataka State. The nearest Railway Station is Mettupalayam in Coimbatore District, 

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at a distance of 43 Km. Erode Railway Junction is also serving as an important access 

node for Sathyamangalam. 

Figure 2-1: Regional setting and Network Linkages - Sathyamangalam

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The town is also linked with Gobichettipalayam, Bhavani Sagar, Mettupalayam with 

District roads. The nearest Airport is located at Coimbatore, 68 kms, away. 

2.2 Demography 

Sathyamangalam is one of the largest urban centers in Erode district and has a 

population of 33738 as per 2001 census with Male population of 17178 and Female 

population of 16560. The growth of population and decadal variation since the year 

1941 is shown in Table 2-A 

Table 2-A Population growth of Sathyamangalam 

Census year Population Variation 

The town registered a relatively lower growth rate (CAGR) of 0.39 percent during the 

decade 1991-2001 in comparison with the 4.66 percent (CAGR) growth rate 

registered during the decade 1941-1951. Due to absence of external growth inducing 

factors such as industrialization and enhanced commercial activities, Sathyamangalam 

has shown a nominal growth rate from the last two decades. The area of the town is 

29.23 Sq.Km as furnished in the revised master plan for the 2011 (yet to be approved). 

There is a marginal variation in the overall population density of Sathyamangalam in 

1991 and 2001 and is about 1111 and 1154 persons per Sq.Km respectively. 

The ward wise population as per Municipal records for the 27 wards of 

Sathyamangalam Municipality is shown in Table 2-B. 

% to decade 

variation 

Growth rate 

(CAGR) 

1941 8891 -- 

1951 14018 5127 57.67 4.66 

1961 19236 5218 37.22 3.22 

1971 25931 6695 34.80 3.03 

1981 31040 5109 19.70 1.81 

1991 32462 1422 4.58 0.45 

2001 33738 1276 3.93 0.39 

Source : Draft Development Plan for the year 2011 for Sathyamangalam Local 

Planning area 

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Table 2-B Ward wise population of Sathyamangalam Municipality 

W.No Population Male Female Total SC Male SC Female SC 

1 1877 981 896 271 143 128 

2 1787 915 872 301 160 141 

3 977 506 471 -- -- -- 

4 624 315 309 --- -- -- 

5 1453 713 740 5 2 3 

6 1084 541 543 --- -- -- 

7 1249 606 643 -- -- -- 

8 370 197 173 2 1 1 

9 1841 934 907 5 2 3 

10 1944 952 992 469 235 234 

11 1106 570 536 154 80 74 

12 839 439 400 3 2 1 

13 1055 549 506 16 9 7 

14 1055 545 510 2 1 1 

15 994 504 490 8 4 4 

16 1033 526 507 7 3 4 

17 1048 536 512 994 504 490 

18 1313 651 662 11 7 4 

19 1282 631 651 60 30 30 

20 884 442 442 -- -- -- 

21 1013 516 497 -- -- -- 

22 1343 682 661 10 5 5 

23 1308 697 611 33 16 17 

24 1145 560 585 385 193 192 

25 2324 1176 1148 96 48 48 

26 1666 825 841 37 15 22 

27 1108 615 493 78 57 21 

Total 33722 17124 16598 2947 1517 1430

2.3 Social Characteristics 

2.3.1 Social Composition 

SC population is 

around 9 percent of 

the total population 

whereas ST 

population is 

insignificant which 

comes around 0.4 

percent of the total 

population as per 

census 2001, which is shown in Table 2-C. 

2.3.2 Gender Ratio 

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Gender ratio is found to be normal in Sathyamangalam municipal area and is 

increasing from last three decades as shown in Table 2-D. However, Sathyamangalam 

has lower gender ratio in comparison with the overall Tamilnadu urban gender ratio 

which is around 982 females per 1000 male population. 

Table 2-D Gender ratio of Sathyamangalam 

Census Males Females Total 

Gender ratio in 

Sathyamangalam 

1981 15953 15087 31040 946 

1991 16624 15838 32462 953 

2001 17178 16560 33738 964 

Source: data compiled from draft Master plan (yet to be approved) for the year 2011. 

2.3.3 Literacy levels 

Even though Sathyamangalam has seen a steady increase in the percentage of literates 

from 53 to 67 percent from the last three decades, there is a steady decrease in male 

literacy rate and steady increase in female literacy rate during the same period as 

shown in Table 2-E. 

Social 

Composition 

Table 2-C Social Composition 

Male Female Total % share 

to total 

SC Population 1517 1430 2947 8.74 

ST Population 66 55 121 0.36 

Others 15541 15113 30654 90.90 

Total 

Population 

17124 16598 33722 100.00 

Source : Census Publications 2001 

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Table 2-E Literacy levels from the last three decades in Sathyamangalam 

Census Male Female Total % of % of total literates. 

year literates literates Literates total pop Male Female 

1981 10134 6393 16527 53.24 61.32 38.68 

1991 11349 8098 19447 59.91 58.36 41.64 

2001 12730 10042 22772 67.50 55.90 44.10 

Source: data compiled from draft Master plan (yet to be approved) for the year 2011. 

2.4 Physical Characteristics 

2.4.1 Topography 

The general topography of this town is not flat and the town is generally covered by 

the slopping lands with steadily rising land in the North towards Western Ghat 

stretches. Since the river Bhavani flows at the center of the town from west to east, 

Agricultural wet lands are predominant on both sides of the river. The dry lands are 

predominant in the northern side of the town. 

2.4.2 Geology and soil type 

The soil in and around the town is mainly red loam. Quarrying of hard granite stone is 

being done at a distance of 8 Km from this town. The subsoil condition of 

Sathyamangalam is suitable for building construction. 

2.4.3 Climate and Rainfall 

Since the town is situated close to the hills, the region has a reasonably salubrious 

climate throughout the year. The mean maximum and minimum temperature recorded 

is 38.9 0 C and 29.1 0 C respectively. The average annual rainfall is 730mm. Rainfall 

occurs during Northeast monsoon during the months of June to September.

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3 PHYSICAL PHYSICAL PLANNING PLANNING AN AND AN D GROWTH GROWTH 

GROWTH 

MANAGEM 

MANAGEMENT 

MANAGEM ENT 

Sathyamangalam is a medium size town with an agricultural land on all sides. It is one 

of the Taluk Head Quarters in Erode District and also an urban center located near the 

state boundaries of Tamil Nadu and Karnataka. It is one of the very old settlements of 

Tamil Nadu. The town has developed on both sides of Bhavani River and along the 

Highways Road. The rate of urban growth of Sathyamangalam is very low, because 

the Northern side of this Municipality is surrounded by reserved forests. Poor 

Industrial activities are also one of the reasons for slow population growth rate. 

3.1 Land Usage in Sathyamangalam 

Sathyamangalam Municipal area is 29.24 Km. It has been notified with vast extent 

comprising of four revenue villages namely Sathyamangalam, Varadhampalayam, 

Kottuveerampalayam and Rengasamudram. 

The total developed area of the town has increased from 7 percent to 10.5 percent 

between 1985 and 2001. However, there is a sharp decline in the share of industrial 

area to the total area from 2.54 percent to 0.25 percent as shown in Table 3-A due to 

poor industrial activity and poor industrial development. It clearly states that most of 

the areas notified as industrial area in the 1982 Master Plan hadn’t been developed as 

envisaged in the plan. 

Dry agricultural lands had either been converted into wet lands or into various land 

usage as its share has gone down from 90.5 percent to 83 percent of the total area 

between 1985 and 2001 period. 

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Land Use 

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Table 3-A Land use in 1985 and 2001 

1985 2001 

% to 

developed 

area 

% to 

the 

total 

area 

Area in 

Ha 

% to 

develope 

d area 

% to the 

total 

area 

Residential 104.75 51.55 3.58 251.4 82.27 8.60 

Commercial 6.45 3.17 0.22 20.44 6.69 0.70 

Industrial 74.24 36.53 2.54 7.01 2.29 0.24 

Educational 7.9 3.89 0.27 13.01 4.26 0.44 

Public and semi public 9.87 4.86 0.34 13.71 4.49 0.47 

Developed area 203.21 100.00 6.95 305.57 100.00 10.45 

Agricultural wet 75.19 2.57 185.13 6.33 

Agricultural dry 2645.06 90.48 2433.08 83.22 

Undeveloped area 2720.25 93.05 2618.21 89.55 

Total 2923.46 100.00 2923.78 100.00 

Source: Land Use Survey conducted by Regional Deputy Director of T & CP, Salem. 

3.2 Proposed Land Use for the year 2011 

In the proposed draft Master Plan for the year 2011, the land under wet land category 

has been preserved as it is, whereas the dry land of 344.43 out of total 2433.08 

hectares is proposed to be developed under various usage namely residential (85%), 

commercial (3.5%), industrial (3.63%), educational (1.88%) and for public and semi 

public (5.46%) as shown in Table 3-B. 

Table 3-B Proposed Land Use and additional land required for the year 2011 

Land Use Area in Ha 

% to 

developed 

area 

% to 

total 

area 

Existing area 

in Ha (2001) 

Additional area 

required in 

2011 

in Ha 

Residential 546 84 18.67 251.4 294.6 

Commercial 32.5 5 1.11 20.44 12.06 

Industrial 19.5 3 0.67 7.01 12.49 

Educational 19.5 3 0.67 13.01 6.49

Land Use Area in Ha 

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% to 

developed 

area 


% to 

total 

area 

Existing area 

in Ha (2001) 

Additional area 

required in 

2011 

in Ha 

Public and semi public 32.5 5 1.11 13.71 18.79 

Developed area 650 100 22.23 305.57 344.43 

Agricultural 

Wet 185.13 6.33 185.13 

Dry 2088.65 71.44 2433.08 

Undeveloped area 2273.78 77.77 2618.21 

Total 2923.78 100 2923.78 

Source: data compiled from Draft Master Plan for the year 2011. 

3.3 Development potentials & Constraints 

3.3.1 Development potentials 

Location on the highways makes it easily accessible and supports the town’s 

economic potential. Location on both sides of the River Bhavani is also the major 

strength and potential of the town. The developed area is just 10.46 percent of the total 

area of the town and hence enough land is available for future development of the 

town. Town is still dependent on agro based economy which needs to be diversified 

for future economic development. 

3.3.2 Development Constraints 

The town development is concentrated mainly on both sides of the River Bhavani, al 

along Coimbatore – Mysore National Highway road and along Athani road. The rate 

of urban growth is very slow since the north stretch of the municipal area is still under 

agricultural usage with hamlets spread over here and there. 

Provision of Infrastructure facilities to those hamlets is again a constraint since it 

requires huge investment. Future Development of the town in the near future would be 

on the North side but it would be on a slower rate. 

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4 ECONOMIC ECONOMIC DEVELOPMENT 

DEVELOPMENT 

4.1 Economic Base of the town 

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Sathyamangalam is primarily an agricultural town and there are no major industries in 

its surroundings. The major commercial activity is concentrated in the middle of the 

town. Most of the shops are located along Sathy-Gobi road, Sathy-Bannari road. The 

Daily market and weekly market (Shandy) activities are concentrated at Sathy-Athani 

road. Educational institutions like Bannariamman Engineering and Kamadenu Arts 

College are located at a distance of 6 kms from this town. These institutes partially 

fulfill the educational needs of this town. 

4.1.1 Occupational pattern 

Percentage of workers to total population is stagnant from the last three decades and is 

around 40 percent of the total population. Since the town is an agricultural based 

town, Work force in primary 1 sector has increased considerably from 1981 onwards 

whereas work force in secondary 2 sector has reduced significantly between 1981 and 

2001 and slightly increased between 1991 and 2001. Similarly, workers percentage to 

total population in Tertiary sector has reduced significantly between 1991 and 2001. 

Occupational pattern and trend between 1981 and 2001 is shown in Table 4-A. 

1 Workers from Primary sector constitute Cultivators, Agricultural Labours, Livestock, Forest 

and Fisheries, Mining and Quarrying. 

2 Secondary sector constitute Manufacturing, Household Industries, Manufacturing and 

processing, Other than Household Industries and Construction related workers 

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Workers in 

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1981 

% to total workers 


Table 4-A Occupational pattern 1981-2001 

% to total population 

1991 


% to total population 

2001 


% to 

total population 

Primary 

sector 

4580 36.42 14.76 5410 41.59 16.67 6343 47.60 18.80 

Secondary 

sector 

7995 63.58 25.76 2417 18.58 7.45 3023 22.68 8.96 

Tertiary 

sector 

0 0.00 0.00 5181 39.83 15.96 3960 29.72 11.74 

Total main 

workers 

12575 100.00 40.51 13008 100.00 40.07 13326 100.00 39.50 

Marginal 

workers 

197 0.63 286 0.88 345 1.02 

Non workers 18268 58.85 19168 59.05 20067 59.48 

Source : data compiled from Draft Master Plan for the year 2011 (yet to be Approved) 

8000 

7000 

6000 

5000 

4000 

3000 

2000 

1000 

0 

Figure 4-1 Occupational pattern and trend 1981-2001 

1981 1991 2001 

Primary sector Secondary sector Tertiary sector 

Source : Draft Master Plan for the year 2011 (yet to be Approved)

4.2 Industries in Sathyamangalam 

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Industrial Activities in Sathyamangalam are very negligible compared to other similar 

towns. Only few rice and flour mill, Power loom, Saw Mills, Cotton Ginning Mill and 

other service industries are running in this town. 

Only one minor industry known as Aravind Textiles is located at Rangasamudram 

Village along Koothanoor road in Municipal Ward No. 25. Nearly 300 employees are 

working in this Textile factory. 

In the approved Master Plan 1982, to promote industrial activities in the town, 70.85 

hectares of dry lands had been notified as an industrial area. But so far, no industrial 

developments have taken place in the above notified areas. 

4.3 Tourism potential 

Sathyamangalam itself has no tourist destinations whereas it has some tourist spots in 

its proximity in the form of temples and Dams. Famous Bannari Amman temple is 

located at a distance of 14 Km from the town. Sathyamangalam has two dams namely 

Bhavanisagar and Kodiveri at a distance of 20 and 12 Km respectively. 

Table 4-B Tourist spots around Sathyamangalam 

S.No. Place Distance from Municipality Specialty 

1. 

Bannari Amman 

Temple 

14 Km Temple 

2 Bhavanisagar Dam 20 km Dam 

3 Kodiveri Dam 12 km Dam 

Bhavanisagar Dam Bannari Amman Temple 

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5 PHYSICAL PHYSICAL INFRASTRUCT 

INFRASTRUCTURE 

INFRASTRUCT URE 

Infrastructure facilities play an important role in fostering economic growth and 

enhancing public welfare. By and large, the infrastructure may be divided into two 

categories: 

(a) Physical infrastructure including Water supply, Drainage, Sewerage, Solid Waste 

Management, Electricity, Telecommunications and so forth; and 

(b) Socio-economic infrastructure including Education, Health, other Community 

facilities, Cold storages, Warehouses, Markets, Banks and Financial Institutions. 

This chapter deals with Physical Infrastructure which includes Water Supply, 

Sewerage and Sanitation, Storm water drainage, Solid Waste Management Roads and 

Street Lighting. 

5.1 Water Supply 

5.1.1 Water Supply Sources 

The town is served by protected water supply system designed to supply 4.3 MLD. 

The Rangasamudram water supply scheme is in operation from the year 1966 onwards 

with Bhavani River as source which supplies 1 MLD water. Kombupallam water 

supply scheme which has started its operation from 1996 onwards with same Bhavani 

river as a source supplies 3.3 MLD water. 

5.1.2 Water Supply System 

The municipal area is divided into three zones for distribution purpose. In the 

Rangasamudram headworks, there are two 16 HP pump sets to pump raw water and 

two 20 HP pump sets to pump clear water. In the Kombupallam head works; there are 

two pumps each for pumping raw and clear water with capacities of 35 HP and 50 HP 

respectively. 

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Rapid Sand Filteration and chlorination method is followed for treating raw water in 

both the head works. Kombupallam has the treatment capacity of 8.016 MLD whereas 

the Rangasamudram has the treatment capacity of 1.2 MLD with a total capacity of 

9.216 MLD. The Clear water is supplied to Storage tanks and to the consumers with 

the help of 29.4 Km Water Distribution Network. Three OHTs are located at Rangasa 

(7.75 LL), Kattabomman nagar (10 LL) and Thiruvalluvar Thidal (15 LL), stores 

water for distribution purpose with a capacity of 32.75 LL. There are 2 sump 

reservoirs each located at Kombupallam and Rangasamudram headworks to store the 

clear water. In addition, Municipality has kept 67 mini tanks of 2000 Litre capacity 

each for non-drinking purpose. 

Sathyamangalam has 4305 no of assessments having household service connections 

out of total 8124 assessments. Out of the total connections, 4097 connections are 

domestic and 208 are Non domestic connections. In addition, 64 public fountains 

(stand Posts) have been provided within the town of which 15 are provided within 

slum pockets. Further more, 76 public hand pumps have been provided all over the 

town for non-drinking purpose. 

Table 5-A Water Supply system in Sathyamangalam 

Description Details 

Source of Water Supply : Bhavani river 

Water Supply Agency : Sathyamangalam Municipality 

Distribution Network in Kms : 29.4 

Description regarding Storage Capacity in Lakh Litres 

1. Rangasa OHT : 7.75 

2. Kattabomman Nagar OHT : 10 

3. Thiruvalluvar Thidal OHT : 15 

Total Storage Capacity : 32.75 

Description regarding Connections 

Domestic : 4097 

Commercial : 208 

Total : 4305 

No of Stand posts 64 

No of Hand Pumps 76

5.1.3 Water Availability 

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Water is supplied for 2 hours daily both for HSCs and PFs. Overall, 113 LPCD water 

is being supplied by taking into consideration the population for 2008 would be 

37900. Bulk water supply through tanker lorry of 9000 litre capacity is also being 

provided mainly for unserviced 1 areas and during emergencies. 

5.1.4 Service adequacy 

Table 5-B Performance Indicators 

S.No Indicators Unit 

Current 

Status 

Normative 

Standard 

1 

Daily per capita supply after 

deducting 12% distribution 

losses 

Litres 113 135 

2 

Roads covered with distribution 

network 

Percent 46 > 100 

3 

Storage capacity with respect to 

supply 

Percent 76 33 

4 

Available Treatment capacity 

with respect to supply 

Percent 214 100 

5 

Assessments covered by service 

connections 

Percent 53 85 

6 

Proportion of non domestic 

service connections 

Percent 4.8 >5 

7 Slum population per stand post Persons 417 150 

Source : Computed based on the data collected from Sathyamangalam Municipality 

1 Small residential pockets/Hamlets on the northern side of the town are served by mini tanks 

and Tanker Lorries since the cost required to cover those small hamlets with distribution 

network would be huge due to its distance as specified by Municipal officials. 

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5.2 Sewerage and Sanitation 

5.2.1 Sewerage system in Sathyamangalam 

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Sathyamangalam currently has no underground sewerage system. Night soil is 

disposed normally through individual toilets with septic tanks and low cost sanitation 

facilities. 26 public convenience units have been constructed in the town with 95 seats 

for gents and 106 seats for ladies. The road side drains constructed are used for 

disposing both waste water and rainwater. 

5.2.2 Proposed Under Ground Sewerage Scheme 

For implementing sewerage system, Detailed Project Report for Under Ground 

Drainage scheme for Sathyamangalam Municipality has been prepared by TWAD 

board through outsourcing. Municipal officials have mentioned that the report has 

undergone some modifications and the modified report has again been submitted to 

the TWAD board for approval. 

The Under Ground Drainage Scheme is designed to give 5000 sewer connections and 

the developed area of around 5 Sq.Km is divided into 3 zones. Sewer lines of 47.579 

Km will be laid to collect the sewage which will be treated in two sewage treatment 

plants proposed at Kottuvirampalayam and Parisalthurai near RMB Nagar of capacity 

2.7 MLD and 0.75 MLD respectively. One pumping and lifting station is proposed in 

Rotary club road and in Karattur road near Ragavendra School. As reported by 

Sathyamangalam Municipal officials, the work might get started from 2009 onwards. 

5.2.3 Sanitation facilities in Sathyamangalam 

As mentioned in DPR for UGD scheme for Sathyamangalam Municipality, about 38 

percent of the population have no access to safe disposal systems. It further mentions 

that 5148 households have sanitation facility with septic tank as a disposal system and

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1000 households have low cost sanitation facilities, whereas 962 households are 

without any specific arrangements for sanitation disposal. 

5.3 Storm Water Drainage 

The total length of the 

Storm Water Drains 

constructed in the 

Municipality is around 

84 Kms, out of which, 

8.6 kms are kutcha 

drains. 

5.3.1 Service adequacy 

Table 5-D Performance Indicators Regarding Storm water Drainage 

S.No Indicators Unit 

1 

2 

Road length covered 

with storm water drainage 

Proportion of Kutcha drains 

to total drainage length 

Current 

Status 

Percent 132 130 

Percent 10.3 0 

Normative 

Standard 

Source : Data computed based on the data given by Sathyamangalam Municipality 

5.4 Solid Waste Management 

5.4.1 Generation and collection 

Remarks 

Most of the drains 

are Pucca open 

drains and some 

kutcha drains 

Sathyamangalam Town generates around 14 tonnes of Garbage every day at the rate 

of 370 grams per capita per day. Residential area generates nearly 57 percent of the 

total waste followed by slums (18%) and markets (11%) as shown in Table 5-E. 

Waste is being collected in all the 27 municipal wards. Door to Door collection 

system has been adopted in 22 wards out of 27 wards. Waste is being segregated in all 

the 22 wards covered under Door to Door. 

Table 5-C Length of drains in Sathyamangalam 

Storm water 

drainage 

Single 

side 

Double 

side 

Total 

Kutcha drains 3.2 5.4 8.6 

Pucca drains - 

open 

21.6 53.56 75.2 

Total 24.8 58.96 83.8 

Source : Sathyamangalam Municipality 

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Waste is segregated into 

degradable, non-degradable 

and recyclable and its details 

are shown in Table 5-F. 

40 temporary waste storage 

dustbins have been placed all 

over the town for collection 

purpose. Sathyamangalam 

health department has the 

staff strength of 6 sanitary 

supervisors, 110 sanitary 

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workers and 3 drivers. Out of 110 sanitary workers, 38 members are involved in road 

sweeping whereas remaining 72 members are involved in waste collection and 

disposal. 

As a part of collection system, 25 pushcarts are engaged in primary waste collection. 

In addition, Self help Groups are involved in collecting waste from municipal market 

and converting that into manure by Vermi-Compost method at Thiruvalluvar Thidal, 

Kotuveerampalayam. 

Table 5-F Waste segregation and its quantity in Kgs Sathyamangalam 

Division No Degradable 

Table 5-E Composition of waste generation 

Composition of waste Ton % Share 

Residential 8 57 

Slums 2.5 18 

Institutional 0.25 2 

Industrial 1 7 

Commercial and Trade 0.5 4 

Hospital 0.25 2 

Market 1.5 11 

Total 14 100 


Non- 

Degradable 

Recyclable 

Total 

waste 

Department 

I Division 1202 764 219 2185 

II Division 1925 1225 350 3500 

III Division 1345 855 245 2445 

Kalyanamandapam 675 -- 75 750 

Vegetable Markets (1) 1350 -- 150 1500 

Hotels (7 Nos) 900 -- 100 1000 

Fish stall & Slaughter 

House 

100 -- -- 100 

Commercial 

Establishment 

286 182 52 520 

Market and from Bus 

stand 

1100 700 200 2000 

Total 8883 3726 1391 14000 

Source : Data Collected from Health Department, Sathyamangalam Municipality

5.4.2 Disposal and treatment facilities 

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One tractor trailer, two tippers and one old Ashok Leyland Lorry is in operation for 

secondary waste collection system and disposal. Waste is collected and disposed at 

Attany road dumping site located at a distance of 2 Kms from the town and having an 

area of 6.75 acres. Windrows treatment method is adopted for converting the waste 

into manure at this disposal yard. Further, Vermi Compost waste treatment method is 

adopted by SHGs at Thiruvalluvar Thidal, Kotuveerampalayam site. 

Table 5-G Vehicles deployed for Secondary waste collection and disposal 

Vehicle type Number Trips 

5.4.3 Adequacy of services 

Table 5-H Performance Indicators 

Capacity 

after 0.4 

adjustment factor 

Volumetric 

capacity 

in Ton 

Tractor trailer 1 3 1.6 4.8 

Tipper 2 4 1.2 9.6 

Total waste disposed to Attany road dumping site 14.4 

Source : Data Collected from Health Department, Sathyamangalam Municipality 

Indicators Unit 

Current 

Status 

Normative 

Standard 

Waste generation per Capita per day Grams 370 350-450 

Collection efficiency Percent 100 100 

Door to Door collection efficiency Percent 81 100 

Conservancy staff per Km persons 1.8 2 

% capacity of Fleet vehicles to waste generated percent 28.6 

Source : computed based on the data collected from Sathyamangalam Municipality 

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5.5 Traffic and Transportation 

5.5.1 Regional Network 

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The town is situated at a distance of 65 Km from Erode, the head quarters of Erode 

district linked with State Highways (SH 15). The Coimbatore – Mysore National 

Highway (NH 209) passes through the town. The nearest railway station is 

Mettupalayam in Coimbatore district at a distance of 43 Kms. Erode railway junction 

is serving as out agency for Sathyamangalam. The town is also linked with 

Gobichettipalayam, Bhavani-sagar, Mettupalayam and Bhavani towns with district 

roads. The nearest airport is located at Coimbatore 68 Kms away. The location of 

Sathyamangalam and its regional network linkage is shown in Figure 5-1. 

Figure 5-1 Location of Sathyamangalam and its Regional Network Linkage 

Source: www. mapsof India.com

5.5.2 City level road network 

The total road 

Length within 


Municipal area is 

63.5 Km. Out of 

63.5 km road length, 

47.18 km are built 

with bituminous 

road, 11.78 km roads 

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are made up of Cement Concrete and Kutcha road constitutes 4.502 kms. Road length 

and its type are shown in Table 5-I. Further 3 Km state highway road is maintained by 

Public Works Department and 6 Km National Highway within municipal area is 

maintained by NHAI. 

Within slum areas itself, 2.61 Km Cement Concrete roads and 12.63 Km Bitumen 

roads has been laid whereas 0.62 Km road in slums are of earthen type. There are no 

allotted parking spaces (both off and on site parking) within Sathyamangalam 

Municipal area under Municipality administration. 

5.5.3 Public Transport system in Sathyamangalam 

The main mode of mass transportation within and outside the town is buses operated 

both by Government Transport Corporation and Private Transport Owners. Town 

buses from Sathyamangalam connect Gobichettipalayam, Puliampatti, Bannari, 

Bhavanisagar and Kodiveri. 

5.5.4 Bus Stand infrastructure 

Table 5-I Existing road details in Sathyamangalam 

Road type 

Length in 

Kms 

% to 

total 

Bitumen 47.18 74.3 

Cement 

Concrete 

11.781 18.6 

Earthen road 4.502 7.1 

Total 63.5 100.0 

Source : Data Collected from Engineering section, 

Sathyamangalam Municipality 

The Bus stand is located in the heart of the town, constructed during 1990-91 under 

IDSMT Scheme. Amenities like One free urinal, Pay and Use Toilets, protected water 

supply and lighting facilities have been provided. The bus stand is clarified as ‘B’ 

Grade in 2003 and an Entrance fee of Rs. 12 /- for bus is being collected daily. 

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5.6 Street Lighting 

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Sathyamangalam has 1329 street lights positioned all over the municipal area in which 

1131 lights are tube lights and the remaining 198 lights are of Sodium Vapor lamps. 

60 additional Tube lights have been positioned in the Sathyamangalam bus stand. 

Street lighting system in Sathyamangalam has been privatized in all the wards. Entire 

maintenance and repairing work would be done by the private party whereas power 

charges are paid by the Municipality. Ward wise street light details are given in Table 

5-J. As a part of energy saving mechanism, Municipality has placed automated timer 

switches on some street poles as a pilot project for effective energy saving and 

consumption. 

Table 5-J Ward wise Street Light details in Sathyamangalam 

Ward No 

Tube 

lights 

Sodium 

vapor 

Total Ward No 

Tube 

lights 

Sodium 

vapor 

Total 

1 64 15 79 14 9 4 13 

2 56 6 62 15 27 4 31 

3 54 0 54 16 22 3 25 

4 25 2 27 17 23 3 26 

5 25 7 32 18 43 9 52 

6 9 1 10 19 29 11 40 

7 17 4 21 20 18 4 22 

8 19 2 21 21 45 9 54 

9 80 4 84 22 33 14 47 

10 87 8 95 23 77 32 109 

11 61 22 83 24 43 6 49 

12 40 4 44 25 117 7 124 

13 26 5 31 26 51 4 55 

Tube Lights in Bus stand 60 27 31 8 39 

Total 1131 198 1329 

Existing Street light spacing in meters 48 

Source : Sathyamangalam Municipality

5.6.1 Adequacy of services 

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Table 5-K Performance Indicators regarding Street Lighting in Sathyamangalam 

Indicators Unit 

Current 

status 

Norms/Standards 

Spacing between lamps Meters 48 30 

Proportion of tube lights W.R.T to total Percent 85 60 

Proportion of high power fixtures W.R.T to 

total 

Percent 15 40 

Source : computed based on the data collected from Sathyamangalam Municipality 

5.7 Problems and issues 

Sector Issues 

Water Supply 

• Service coverage by HSCs (53%) 

• Vastness of area and scattered settlements 

• Huge investment requirements to cover the entire area with water 

supply. 

• More than 50% of the roads are uncovered by Distribution network 

• Rangasamudram water supply scheme, being in operation from 1966 

require improvements and up gradation 

Sewerage • Scattered settlements are not covered under proposed UGSS 

Storm water 

drainage 

Traffic and 


• All drains are open 

• 80 % of the existing drains need renovation. 

• 10 percent of the existing drains are Kutcha 

• Traffic congestion on Coimbatore – Mysore NH road, Kolathur and 

Puliamkombai road 

• Intersections are poor in geometrics. 

• Bus Stand infrastructure inadequacy 

• Bus parking space is inadequate to cater future demand 

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Sector Issues 

Solid Waste 

management 

Street lighting 

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• 7 percent of the existing roads are Kutcha 


• Inadequate space for Dumping and Treatment 

• Inadequate vehicle capacity 

• 5 wards are not covered under D-D collection system and waste 

segregation 

• Spacing between lights is more than 30 Meters 

• Energy saving devices are not yet adopted

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6 SOCIO SOCIO-ECONOMIC SOCIO ECONOMIC INFRASTRUCT 


INFRASTRUCT 


URE 

The Socio-economic infrastructure determines the development status of any human 

settlement and this chapter covers Health, Education, Recreation and other amenities. 

6.1 Health 

Sathyamangalam has one Govt Anna hospital and one Municipal Maternity and Child 

Welfare centre serving the population of the town. In addition, 16 private hospitals 

with total bed strength of 195 and 12 private clinics without beds are also functioning 

within the town. Sathyamangalam has all about 274 beds resulting in 7 bed per 1000 

members against the norm of two bed per 1000 population. 

Table 6-A Health infrastructure in Sathyamangalam 

S No Hospital 

No of 

beds 

Address 

1 Govt Anna hospital 76 Mysore trunk road 

2 Municipal Maternity and Child Welfare centre 3 Vadakku pettai road 

3 Sakthi hospital 12 Rangasamudram 

4 Anush hospital 12 Bharathi nagar 

5 Sathya hospital 10 Rangasamudram 

6 Aravind hospital 10 Gobi main road 

7 Amudha hospital 15 attani road 

8 KGR hospital 58 Attani road 

9 Vijaya hospital 20 Rajiv nagar 

10 Udayam hospital 10 Attani road 

11 immanuvel hospital 8 attani road 

12 TMA hospital 10 Vadakku pettai road 

13 SKS hospital 10 Post office street 

14 Siyamala hospital 10 Old post office street 

15 Maruthappa hospital 8 Mysore trunk road 

16 Palaniappa hospital 2 Kottuveerampalayam 

Total no of beds 274 

Population 37487 

Beds per 1000 population 7 

17 Private clinics 12 

Source : Data Collected from Sathyamangalam Municipality 

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6.2 Education 

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In Sathyamangalam town has 2 Higher Secondary schools maintained one by 

government and another one by private. Apart from this, there are 2 high schools 

maintained each by municipality and private. Six Matriculation schools and five 

elementary schools are also functioning privately in the town. Municipality has 2 

elementary schools. In addition, there is one Girls Higher Secondary School located 

just outside the municipal limit along Gobi road. The available educational facilities 

are shown in Table 6-B. 

Table 6-B Educational facilities in Sathyamangalam 

S No Educaional Institution Govt Municipality Private 

1 Elementary School 2 5 

2 High School 1 1 

3 Higher Secondary School 1 1 

4 Matriculation School 6 

Total 1 3 13 

Source : Data collected from Sathyamangalam Municipality 

6.3 Recreation 

Sathyamangalam has 2 Municipal parks maintained by the Municipality. The town is 

provided with 4 play ground located at Bharathi nagar, Teachers nagar, Britto colony 

and at Nirmala Theatre. In addition, play area attached to the Govt. Higher Secondary 

School provides good play space. Sathyamangalam has one town hall in ward No. 23. 

Three permanent cinema theatres namely Sathya, Nirmala and Gobalt are serving the 

population for entertainment purpose. At present, Town has 19 approved layout plots 

allotted for parks, playfields and open spaces, out of which, 5 plots are used currently 

as playfields, one is developed for Over Head Tank, and one is developed for School 

and public Conveniences. Remaining 12 plots are still open spaces which could be 

developed in the near future.

6.4 Other amenities 

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Pond located within municipal area in ward No. 2 and 3 is controlled by Public works 

Department. Since Sathyamangalam is primarily an agricultural town, it has both 

weekly and municipal market in ward No.11 serving Sathyamangalam and 

surrounding villages. 

Town has two burial grounds located at Rangasamudram and Kottuveerampalayam. It 

has one Slaughter house placed in Mysore Trunk road. It has one Pay & Use toilet 

provided near Sathyamangalam bus stand. 

6.5 Problems and Issues 

Sector Issues 

Social Infrastructure 

• 12 approved open spaces and layout are still undeveloped 

• Municipal High school has Asbestos Cement and tiled roofing 

which is about 30 years old. 

• Community hall has no compound wall, no Dining hall, no 

bride and groom room and the setback areas are of earthen 

type. 

• Rangasamudram burial ground has infrastructure inadequacies 

• Vegetable market buildings are in bad shape and it requires CC 

pavement, Toilet, water supply and lighting arrangements. 

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7 SLUMS SLUMS AND AND URBAN URBAN POVE POVERTY 

POVE RTY 

As per Census of India, the slum areas are broadly defined as :- 

(i) All specified areas in a town or city notified as ‘Slum’ by State/Local Government 

and UT Administration under any Act including a ‘Slum Act’. 

(ii) All areas recognized as ‘Slum’ by State/Local Government and UT 

Administration, Housing and Slum Boards, which may have not been formally 

notified as slum under any act; 

(iii) A compact area of at least 300 persons or about 60-70 households of poorly built 

congested tenements, in unhygienic environment usually with inadequate 

infrastructure and lacking in proper sanitary and drinking water facilities. 

7.1 Slums in Sathyamangalam 

In Sathyamangalam, there are 16 slums in existence. Out of 16 slum pockets in 

Sathyamangalam 11 are notified and 5 are un-notified having 5565 and 690 slum 

population respectively. Nearly 17 percent of the total population is living in slums. 

Location of slums within the municipal area is shown in Table 7-A. 

Table 7-A Slums in Sathyamangalam and the service provision 

Name Type 

Ward 

No 

Population 

No of 

Stand posts 

Public 

toilets 

Dhanavasi Notified 1 625 

Tanker lorry 

supply 

1 

MGR Nagar Notified 1 135 1 1 

Kulathur Notified 2 555 0 1 

Puliyankombai Notified 9 875 0 1 

Anna Nagar Notified 9 715 3 0 

Kasikadu Notified 10 175 0 0 

Puduvalavu Notified 10 85 0 0 

Thoppur Colony Notified 17 1120 5 1 

Pillaiyar Koil Street Notified 19 580 2 1 

Govindarajapuram Notified 24 410 2 1 

JJ Nagar Notified 2 290 0 1 

Sub Total 5565 13 8 

Andavarnagar Unnotified 9 115 0 0 

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Name Type 

Ward 

No 

Population 

No of 

Stand posts 

Public 

toilets 

Kulankardu Unnotified 3 210 0 0 

MGR NagarII Unnotified 11 125 2 1 

Mondikardu Unnotified 10 115 0 0 

Kampathrayaputhur Unnotified 10 125 0 0 

Sub Total 690 2 1 

Total 6255 15 9 

Slum population per Stand post 417 

Source: Data collected and compiled from Sathyamangalam Municipality 

7.1.1 Service provision in slum areas 

Water is being supplied to slum areas by Tanker lorry and by Stand posts. Nearly 15 

stand posts have been provided in slum areas. More number of stand posts is required 

in both notified and un-notified slums since the persons per stand post at present is 

428 and 345 in notified and un-notified slums respectively against the norm of 150 

persons per stand post. 

As far as public conveniences are concerned, 7 slum pockets have no public 

conveniences and population served by one toilet unit is coming around 690 including 

notified and un-notified slum population. 

Within slum areas itself, 2.61 Km Cement Concrete roads and 12.63 Km Bitumen 

roads has been laid whereas 0.62 Km road in slums are of earthen road. Further, 

Slums are provided with community bins for primary waste collection as a part of 

Solid Waste Management system. 

Table 7-B Service provision in Slum areas 

Name Population 

No of 

Standposts 

Public 

toilets 

Population 

per Standpost 

Population per 

Public toilet 

Dhanavasi 625 

Tanker lorry 

supply 

1 NA 625 

MGR Nagar 135 1 1 135 135 

Kulathur 555 0 1 NA 555 

Puliyankombai 875 0 1 NA 875 

Anna Nagar 715 3 0 238 NA 

Kasikadu 175 0 0 NA NA 

Puduvalavu 85 0 0 NA NA 

Thoppur Colony 1120 5 1 224 1120 

Pillaiyar Koil Street 580 2 1 290 580

TNUIFSL 


Govindarajapuram 410 2 1 205 410 

JJ Nagar 290 0 1 NA 290 

Sub Total 5565 13 8 428 696 

Andavarnagar 115 0 0 NA NA 

Kulankardu 210 0 0 NA NA 

MGR NagarII 125 2 1 62 125 

Mondikardu 115 0 0 NA NA 

Kampathrayaputhur 125 0 0 NA NA 

Sub Total 690 2 1 345 690 

Total 6255 15 9 417 695 

Source Sathyamangalam Municipality 

7.2 Urban poor in Sathyamangalam 

Sathyamangalam has significant number of below poverty line (BPL) population 

which comes around 35% of the total population. Ward wise BPL population is shown 

in Table 7-C. 

Table 7-C Ward wise BPL population in Sathyamangalam 

Ward BPL Ward BPL 

No population No population 

1 583 14 523 

2 474 15 488 

3 516 16 552 

4 418 17 597 

5 433 18 427 

6 490 19 629 

7 683 20 373 

8 379 21 331 

9 501 22 475 

10 870 23 613 

11 259 24 704 

12 425 25 273 

13 690 26 259 

27 325 

Total BPL population 13290 

Total Population 37487 

% of BPL population to total 


35 

65% 

35% 

BPL population Population above poverty line 

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7.3 Problems and Issues 

Slums and Urban 

Poverty 

Sector Issues 

TNUIFSL 


• Large number of slum pockets (16) 

• Large proportion of BPL population 

• 7 slum pockets have no public conveniences. 

• Slum Population per SP is very high

8 FINANC FINANCIAL FINANC IAL STATUS 

8.1 Overview 

TNUIFSL 


The Urban Local Bodies (ULB’s) in Tamil Nadu have adopted Accrual Based Accounting 

System in the last few years. Currently the ULB’s of Tamil Nadu maintain three separate fund 

namely a) Revenue and Capital Fund b) Water Supply and Drainage Fund and c) Elementary 

Education Fund. For each of these funds a Trial Balance, Income & Expenditure Account and 

Balance Sheet are maintained. 

The Sources of income for a municipality can be broadly categorized as own sources (Includes 

both Tax and Non Tax Revenues), and External Sources (Assigned Revenues, Devolution 

Funds, Grants and Contribution). Besides municipalities also can avail of 

loans/Grants/Contribution from Government(Central and State) and loans from various 

funding agencies such as TUFIDCO, TNUIFSL, HUDCO, LIC and Banks etc, for undertaking 

specific projects based on their credit worthiness. 

The municipality’s Revenue expenditure can be broadly categorized into Personnel cost and 

Terminal and Retirement benefits, Operating Expenses, Repairs & Maintenance Expenses, 

Programme Expenses Administrative Expenses, Finance Expense, Provision for Depreciation. 

Besides the above, significant amount would be required for undertaking up capital works. 

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8.2 Financials (Revenue Fund) 

Rs.in Lakhs 

INCOME 

400.00 

200.00 

0.00 

TNUIFSL 


Figure 8-1 Income & Expenditure Account (Revenue Fund) 

Income & Expenditure Account (Revenue Fund) 

2002-03 2003-04 2004-05 2005-06 2006-07 

Year 

Source : Annual Accounts/Budget Estimates of Sathyamangalam Municipality 

TOTAL INCOME 

TOTAL 

EXPENDITURE 

Table 8-A Income & Expenditure Account (Revenue and Capital Fund) 

Particulars 2002-03 2003-04 2004-05 2005-06 

Rs.in lakhs 

Revised 

Estimates 

2006-07 

Property Tax 23.48 24.17 24.77 25.01 26.26 

Other Tax 6.71 6.64 9.16 10.31 10.82 

Assigned Revenue 70.18 41.48 42.17 23.90 29.76 

Devolution fund 65.25 62.96 56.94 84.41 88.62 

Service Charges and Fees 27.85 27.02 26.43 39.07 42.76 

Fees for Bus stand 10.54 10.49 11.06 N.A N.A 

Fees for Slaughter house 7.04 8.15 7.11 N.A N.A 

Building License Fees 4.99 2.07 4.89 N.A N.A 

Other Fees 5.27 6.31 3.37 N.A N.A 

Grants and Contribution 0.12 0.06 0.00 0.00 5.10 

Sale & Hire Charges 0.01 0.02 0.19 0.19 0.19 

Other Income 36.84 37.20 43.47 24.84 26.13 

Daily Market Fees 7.22 5.78 7.46 N.A N.A 

Rent on Shopping Complex 0.00 18.65 20.19 N.A N.A 

Rent on Community Hall 17.36 0.01 0.08 N.A N.A

TNUIFSL 


Particulars 2002-03 2003-04 2004-05 2005-06 

Revised 

Estimates 

2006-07 

Project Overhead 

Appropriation Expenses 

5.78 2.42 6.82 N.A N.A 

Others 6.48 10.33 8.91 N.A N.A 

TOTAL INCOME 230.44 199.54 203.13 207.73 229.64 

EXPENDITURE 

Personnel Cost I (Salaries) 99.50 104.78 112.83 145.25 166.96 

Personnel Cost II (Others) 3.00 2.42 2.38 2.76 2.90 

Terminal and 

retirement benefits 

27.10 14.60 9.23 1.58 11.38 

Operating Expenses 14.83 18.80 15.27 35.71 37.49 

Maintenance Expense for Street 

Lights 

1.37 2.87 2.04 N.A N.A 

Power Charges for Street Lights 11.56 12.94 11.80 N.A N.A 

Others 1.90 2.99 1.43 N.A N.A 

Repairs & Maintenance 3.52 3.18 3.70 6.32 8.65 

Heavy Vehicles 2.42 1.98 2.93 N.A N.A 

Others 1.10 1.20 0.77 N.A N.A 

Programme Expenses 0.16 0.17 0.22 0.22 2.33 

Administrative Expenses 12.09 7.77 8.09 8.83 9.48 

Finance Expenses 13.68 26.32 21.57 28.04 29.44 

Interest on loans/ Ways and 

means advance 

6.34 24.84 17.35 N.A N.A 

Others 7.34 1.48 4.22 N.A N.A 

Depreciation 67.80 55.33 51.47 65.53 68.80 

TOTAL EXPENDITURE 241.68 233.37 224.76 294.24 337.43 

NET DEFICIT/SURPLUS -11.23 -33.83 -21.63 -86.51 -107.79 

Source: Annual Accounts/Budget Estimates of Sathyamangalam Municipality 

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Table 8-B Balance Sheet (Revenue and Capital Fund) 

Source: Annual Accounts/Budget Estimates of Sathyamangalam Municipality 

Note: There is a mismatch in the Total Liabilities and Total Assets for the FY 2005-06 

Rs.in lakhs 

Particulars 2002-03 2003-04 2004-05 2005-06 

LIABILITIES 

Loan 285.07 279.86 273.42 273.42 

Loan from the Government 57.99 52.93 50.71 50.71 

Loan from TNUDF 227.09 226.93 222.70 222.70 

Grants & Contribution 174.81 219.30 242.32 255.86 

Grant & Contribution From 

Government 

151.02 184.61 207.63 221.18 

Contribution from others 0.20 0.10 0.10 0.10 

Diversion from other TP fund 23.59 34.59 34.59 34.59 

Accumulated Depreciation Account 260.81 316.22 358.47 358.47 

Capital reserve 232.15 232.15 232.15 232.15 

Ways and means Advance 1.39 1.39 1.39 1.39 

Current Liabilities 232.47 218.38 216.41 228.49 

Accumulated Surplus Account 897.77 863.97 842.81 786.80 

TOTAL LIABILITIES 2084.47 2131.27 2166.97 2136.58 

ASSETS 

Fixed Assets 1707.07 1756.95 1808.13 1808.13 

Current Assets 377.40 374.32 358.83 358.75 

TOTAL ASSETS 2084.47 2131.27 2166.97 2166.88

8.3 Analysis of Income 

TNUIFSL 


Figure 8-2: Break up of Income of Sathyamangalam Municipality for FY 2006-07 (Revised 

Budget Estimates) 

2006-07 (Revised Budget Estimate) 

11% 

0.08% 

2% 

19% 

39% 

11% 

5% 

13% 

Property Tax 

Other Tax 

Assigned Revenue 

Devolution fund 

Service Charges and 

Fees 

Grants and Contribution 

Sale & Hire Charges 

Other Income 

Source : Revised Budget Estimates of Sathyamangalam Municipality for the FY 2006-07 

Income of the Municipality has been stagnating around Rs.200 Lakhs to Rs.230 Lakhs. Out of 

this, Assigned revenue and Devolution Funds have contributed about 50-58% of the funds of 

the municipality in the last few years. 

8.3.1 Own Sources 

8.3.1.1 Municipal Taxes 

Municipal taxes consisting of Property and Other Taxes (Mainly Professional Tax) have 

contributed about 13%-17% of the total income of Sathyamangalam Municipality in the last 4 

years. The Municipal taxes have been growing at a CAGR of 5% over the last 5 years. 

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Property Tax 

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The most important category in the own sources of income is the property tax. This tax is 

imposed on land and buildings depending upon their nature of use. Property tax accounts for 

about 70-78% of the total Municipal taxes. 

Table 8-C Property Tax Particulars 

Categories Rate per Sq .ft(Rs.) 

A 1.25 

B 1.00 

C 0.80 

D 0.60 

Slab (in %) 

General 1.00 

Water 3.25 

Drainage 0.50 

Lighting 2.00 

Conservancy 1.25 

Education 2.50 

No.of Assessments 2007-08 8124 

No.of Assessments 2002-03 7227 

% Increase in Number Assessments for the Past 6 

years 

2% 

CAGR in collection over the Last 5 years 3% 

Total Property Tax collection(Rs.in Lakhs in 2006-07 

- Revised Budget Estimate) 

26.26 

Number of Staff in Revenue Department 7 

Collection per person (Rs.in Lakhs) 3.75 

Average Tax Demand per property(Rs.) 852 

Average annual P.T Collection per Property(Rs.) 768 

% of arrears pending more than 6 years N.A 

Source : Sathyamangalam Municipality

TNUIFSL 


Table 8-D Number of Assessments in Property Tax for the past 6 years 

Particulars 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 

Residential 5630 5811 5916 6171 6370 6358 

Commercial 1596 1639 1698 1710 1733 1765 

Industrial 1 1 1 1 1 1 

TOTAL 7227 7451 7675 7882 8104 8124 


About 78% of the assessments are from residential categories, while the Commercial and 

industrial category account for the balance 22%. The Municipality having a healthy mix of 

residential and commercial category of assesses can look to enhance its collection by focusing 

on identifying newer assesses and improving the collection efficiency from the existing 

assesses. In the accounts proper provisioning should be made for writing off the arrears 

pending for more than 5-6 years. Reforms at the state level such as revision of property tax 

rates, fast track methods to overcome litigation delays, introduction of GIS to identify and 

mapping of unassessed properties can go a long way to solve the problem of stagnant 

collection of property tax. 

Other Taxes: 

Other Tax revenues are in the form of taxes levied on carriage & carts, animals, 

advertisement, professional tax and others. Professional tax is the other important contributor 

of the own sources of revenue. The other taxes have contributed close to 30% of the total 

Municipal taxes in the last two years. The Other Tax collection has shown a healthy growth 

with CAGR of 13% over the last 5 years. 

Table 8-E Professional Tax Particulars 

Particulars 

Total Professional Tax Collection(Rs.in Lakhs 2006- 

07- Revised Budget Estimate) 

10.82 

No. of Assessment 2007-08 1385 

No.of Assessment 2002-03 1281 

% Increase in Number Assessments for the Past 6 

years 

2% 

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Slab for Professional Tax 


Up to Rs.21000 Nil 

Rs.21000 to Rs.30000 Rs.78 

Rs.30001 to Rs.45000 Rs.195 

Rs.45001 to Rs.60000 Rs.390 

Rs.60001 to Rs.75000 Rs.585 

Above Rs.75001 Rs.780 

Source: Sathyamangalam Municipality 

8.3.1.2 Non Tax Revenues 

The second important component of the municipal revenue is the Non-Tax Revenues like the 

Service Charges and Fees, Sale & Hire Charges and Other Income. The share of non-tax 

revenues to total incomes has ranged between 28% to 34% in the last few years. 

Service Charges and Fees 

Service Charges and Fees account for about 12.08%-18.81% % of the total income of the 

municipality in the last few years. The major sources of income under this head are Fees for 

Bus Stand, Fees for Slaughter House, Building License Fees. This income has been growing at 

a healthy pace of 11% in the last 5 years. 

Other Income 

The Municipality earns significant revenue through earnings from “other income” namely 

Development Charges, Survey Fees, Daily Market Fees, rental Income from Community Hall, 

Shopping Complex, lease of land etc. The Income from Daily market and Rent on shopping 

complex have been the major drivers of the “other income”.

8.3.2 External Sources 

8.3.2.1 Assigned Revenue 

TNUIFSL 


Assigned Revenue includes revenues transfers to the ULB by the GOTN under specific acts. 

This source of revenue income comprises duty on transfer of properties, entertainment tax and 

other assigned revenue. The Share of Assigned Revenue has declined from Rs.70.18 Lakhs in 

FY 2002-03 to Rs.29.76 in FY 2006-07 (Revised Budget Estimates) 

8.3.2.2 Devolution Fund 

Based on the Second State Finance Commission recommendations, GOTN transfers 8% of its 

state revenue to the local government. The contribution through devolution funds has 

increased from Rs.65.25 Lakhs in FY 2002-03 to Rs.88.62 Lakhs in FY 2006-07 (Revised 


8.4 Analysis of Expenditure 

The Revenue Expenditure of the ULB has been analyzed based on expenditure heads which 

can be broadly classified under the major heads outlined below: 

• Personnel costs 

• Operating Expenses 

• Repairs & Maintenance Expenses 

• Programme Expense 

• Administrative Expenses 

• Finance Expenses 

• Depreciation 

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Figure 8-3 Break up of Expenditure of Sathyamangalam Municipality for FY 2006-07 

8.78% 

(Revised Budget Estimates) 

2006-07 (Revised Budget Estimate) 

2.83% 

20.52% 

0.07% 2.58% 

11.18% 3.39% 0.86% 

49.79% 

Personel Cost I 

(Salaries) 

Personel Cost II (Others) 

Terminal and retirement 

benefits 

Operating Expenses 

Repairs & Maintenance 

Programme Expenses 

Administrative Expenses 

Finance Expenses 

Depreciation 

Source : Revised Budget Estimates of Sathyamangalam Municipality for the FY 2006-07 

8.4.1 Personnel Costs:- 

This expense mainly includes the staff salaries, Terminal and retirement benefits and 

allowances paid to the employees of the ULB. The Personnel Cost has accounted for more 

than 50% of the total Expenditure of the ULB in the last few years. The Salaries being the key 

component of personnel tax has grown by 14% over the last 5 years. For example: in the FY 

2002-03, for every Rupee 1 of the income of the municipality 56 paise was spent on 

employee’s expenses, now it spends 79 paise on meeting the employee costs. 

8.4.2 Operating Expenses / Repairs & Maintenance 

Expenses relating to operations and Repairs and Maintenance are very critical indicators of the 

service management and maintenance capabilities and performance of the ULB. In this regard 

Sathyamangalam Municipality has utilized about 8 % -20% of its income towards meeting the 

operations and maintenance expenses for its infrastructure facilities excluding water supply in 

the last few years.

8.4.2.1 Operating Expenses:- 

TNUIFSL 


The Operating expense mainly consists of such expenses which are met towards the 

infrastructure facilities provided by the ULB like Power charges for Street Lights, 

Maintenance Expenses for Street Lights etc. The operating expenses account for about 6%- 

16% of its income, and this is mainly spent for power and maintenance expenses of street 

lights. 

8.4.2.2 Repairs & Maintenance:- 

Repairs & Maintenance expense mainly consists of such expenses such as Heavy Vehicle 

Maintenance, Light Vehicle Maintenance, Sanitary/ Conservancy Expenses etc. The 

municipality spends around 2 %-4% of its income for maintenance and repair works of its key 

infrastructure facilities. 

8.4.3 Administrative Expenses:- 

Administrative Expense as a % of total income accounts for about 4%-5%. In absolute terms 

this has fallen from Rs.12.09 Lakhs in FY 2002-03 to Rs.9.48 Lakhs in FY 2006-07 (Revised 


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8.5 Source & Use of Funds 

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Figure 8-4 : Source and Use of Funds of Sathyamangalam Municipality as on FY 2005-06 

Sources of Funds (2005-06) 

36.83% 

10.69% 

12.80% 

0.06% 10.87% 

11.98% 

16.78% 


Loan 

Grants & Contribution 

Accumulated 

Depreciation Account 

Capital Reserve 

Ways and Means 

Advance 

Accumulated Surplus 

Account 

Current Liabilities 

17% 

Use of Funds (2005-06) 

83% 

Fixed Assets 

Current Assets 

• Grants and Contributions and Loans from government have helped the 

municipality in meeting its fund requirements. Together the Total support 

from the government stands at Rs.271.89 Lakhs as on FY 2005-06 

• 74% of total fixed assets is accounted by Land and Buildings 

8.6 Financials (Water Supply & Drainage Fund) 

Figure 8-5 : Income & Expenditure Account (Water Supply & Drainage Fund) 

Rs.in lakhs 

100.00 

Income & Expenditure Acount ( Water Supply & Drainage 

Fund) 

50.00 

0.00 

2002-03 2003-04 2004-05 2005-06 

Year 

TOTAL INCOME 


TOTAL EXPENDITURE

TNUIFSL 


Table 8-F : Income & Expenditure Account (Water Supply & Drainage Fund) 

Rs.in lakhs 

Particulars 

INCOME 

2002-03 2003-04 2004-05 2005-06 

2006-07 

Revised 

Estimate 

Water Tax 20.39 20.99 21.51 21.51 27.11 

Other Tax 0.00 0.00 0.00 0.00 0.00 




Initial Deposit for New Water 

supply 

5.99 3.30 3.45 3.45 5.13 

Water Supply Connection 

Charges 

1.52 1.29 1.45 1.45 1.69 

Metered/Tap rate water 

charges 

15.58 34.20 35.56 35.56 41.07 

Charges for water supply 

through lorries 

0.03 0.03 0.04 0.04 0.05 



Other Income 0.19 0.55 0.68 0.68 4.89 

TOTAL INCOME 

EXPENDITURE 

43.70 60.35 62.69 62.69 79.94 



Terminal and retirement 

benefits 

1.36 2.19 3.55 3.55 4.06 



Power Charges for Head 

Water Works 

14.54 0.00 15.63 15.63 19.70 

Maintenance expense for 

Water Supply Works 

1.68 1.01 2.09 2.09 2.44 

Others 0.59 1.26 3.92 3.92 4.23 




Depreciation 12.86 13.12 11.97 13.40 14.17 


NET DEFICIT/SURPLUS -44.43 7.17 11.45 10.02 12.13 

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Table 8-G : Balance Sheet (Water Supply & Drainage Fund) 

Rs.in lakhs 

Particulars 2002-03 2003-04 2004-05 2005-06 

LIABILITIES 

Loans 264.88 264.88 264.88 264.88 

Loans from Government 264.88 264.88 264.88 264.88 

Loan from Others 0.00 0.00 0.00 0.00 

Grants & Contribution 76.99 76.99 76.99 76.99 

Grant From Government 0.00 0.00 0.00 0.00 

Diversion from other TP fund 76.99 76.99 76.99 76.99 

Accumulated Depreciation Account 37.79 50.91 65.00 65.00 

Capital reserve 0.00 0.00 0.00 0.00 


Accumulated Surplus Account 13.19 20.19 28.31 26.10 

TOTAL LIABILITIES 556.68 580.32 602.70 601.12 

ASSETS 

Fixed Assets 526.77 532.37 551.07 559.07 


TOTAL ASSETS 556.68 580.32 602.70 610.14 


Our Observations 

Note: There is a mismatch between Total Assets and Total Liabilities in FY 2005-06 

• The total income of the municipality under this fund has grown by 16% 

between FY 2002-03 to FY 2006-07 (Revised Budget Estimates) while the 

expenditure has fallen from Rs.88.14 Lakhs in FY 2002-03 to Rs.67.81 Lakhs 

for the same period. 

• Water taxes has grown by 7% over the last 5 years 

• Service charges and fees consisting mainly of Initial deposit for new water 

supply, metered/tap rate water charges has grown by 20% over the last 5 

years. In this, the metered/Tap water charges which account for more than 

85% of the total service charges and fees in the last few years has grown by 

27% in the last 5 years. 

• Repairs and maintenance account for close to 40% of the total expenditure of 

the municipality.

TNUIFSL 


8.7 Financials (Elementary Education Fund) 

Figure 8-6 : Income & Expenditure Account (Elementary Education Fund) 

Rs.in Lakhs 

20.00 

15.00 

10.00 

5.00 

0.00 

Income & Expenditure Account ( Elementary Education Fund) 

2002-03 2003-04 2004-05 2005-06 

Year 


INCOME 

TOTAL INCOME 

TOTAL EXPENDITURE 

Table 8-H : Income & Expenditure Account (Elementary Education Fund) 

Particulars 2002-03 2003-04 2004-05 2005-06 

Rs.in lakhs 

2006-07 

Revised 

Budget 

Estimates 

Education Tax 13.60 13.99 14.36 14.48 15.20 

Other Tax 0.00 0.00 0.00 0.00 0.00 






Other Income 0.06 0.08 0.01 0.03 0.41 

TOTAL INCOME 13.65 14.08 14.37 14.51 15.62 

EXPENDITURE 



Terminal and 

retirement benefits 

0.00 0.00 0.00 0.00 0.00 

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Particulars 2002-03 2003-04 2004-05 2005-06 

2006-07 

Revised 

Budget 

Estimates 






Depreciation 0.81 0.89 0.65 0.67 0.70 


NET DEFICIT/SURPLUS 12.62 12.96 13.47 13.52 14.19 


LIABILITIES 

Table 8-I : Balance Sheet (Elementary Education Fund) 

Rs.in lakhs 

Particulars 2002-03 2003-04 2004-05 2005-06 

Ways and Means Advance 0.00 0.00 0.00 0.00 

Contribution from Government 0.00 0.00 0.00 0.00 

Grants from Government 0.00 0.00 0.00 0.00 

Accumulated Depreciation 2.33 3.22 3.87 4.26 

Accumulated Surplus 71.81 84.77 98.24 98.29 


TOTAL LIABILTIES 75.58 89.43 103.56 104.02 

ASSETS 

Fixed Assets 37.48 37.48 37.55 38.26 


Other Items 33.31 46.61 12.50 12.50 

TOTAL ASSETS 75.58 89.43 103.56 104.02 

Our Observations 


• The Income has grown from Rs.13.65 Lakhs in FY 2002-03 to Rs.15.62 

Lakhs in FY 2006-07 (Revised Budget Estimates) 

• This fund has shown a consistent surplus over the last few years

8.8 Financials Consolidated 

TNUIFSL 


Table 8-J : Consolidated Financials of the three Funds 

Particulars 2002-03 2003-04 2004-05 2005-06 

Rev. 

estimate 

2006-07 

Rs.in Lakhs 

Budget 

2007- 

08 

INCOME 

Property Taxes 23.48 24.17 24.77 25.01 26.26 27.51 

Water Taxes 20.39 20.99 21.51 21.51 27.11 28.40 

Education Tax 13.60 13.99 14.36 14.48 15.20 15.93 

Other Tax 6.71 6.64 9.16 10.31 10.82 11.34 

Assigned Revenue 70.18 41.48 42.17 23.90 29.76 31.32 

Devolution fund 65.25 62.96 56.94 84.41 88.62 92.84 

Service Charges/Fees 50.96 65.83 66.92 79.56 90.69 95.46 

Grants and Contri. 0.12 0.06 0.00 0.00 5.10 2.50 

Sale & Hire Charges 0.01 0.02 0.19 0.19 0.19 0.20 

Other Income 37.08 37.83 44.16 25.56 31.44 32.87 

TOTAL INCOME 

EXPENDITURE 

287.80 273.97 280.19 284.93 325.19 338.37 

Personnel Cost I (Salaries) 113.29 116.49 126.21 158.63 183.04 181.08 

Personnel Cost II (Others) 3.19 2.70 2.66 3.04 3.27 3.42 

Terminal and 

retirement 

benefits 

28.47 16.78 12.78 5.13 15.44 16.22 

Operating Expenses 17.83 41.84 15.27 35.71 39.30 41.18 

Repairs & 

Maintenance 

20.38 5.45 25.34 27.96 35.53 37.12 

Programme Expenses 0.16 0.17 0.22 0.22 2.33 0.25 

Administrative 

Expenses 

15.37 8.51 8.57 9.39 14.54 15.20 

Finance Expenses 50.69 26.40 21.74 28.22 29.53 30.93 

Depreciation 81.47 69.34 64.08 79.60 83.68 87.66 

TOTAL EXP 330.84 287.67 276.89 347.91 406.66 413.07 

NET DEFICIT 

/SURPLUS 

-43.04 -13.70 3.30 -62.98 -81.47 -74.70 


The consolidated statement consisting of all the three funds shows that Sathyamangalam 

Municipality has been facing deficit over the last few years except for a small surplus of Rs. 

3.3 lakhs during 2004-05. 

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8.9 Demand, Collection and Balance for the past 5 

years 

S. 

No Particulars 

Table 8-K: DCB for the Past 5 years 

Rs. In Lakhs 

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 

Actuals 

Budget 

Est. 

1 PROPERTY TAX- DEMAND, COLLECTION AND BALANCE 

No of Assessment 7227 7451 7615 7882 8104 8124 

A. Demand 

Arrears 18.93 21.53 20.61 17.31 17.25 14.27 

Current 61.8 63.61 65.19 66.58 67.37 68.36 

Total 80.73 85.14 85.8 83.89 84.62 82.63 

B. Collection 

Arrears 5.46 6.65 12.74 9.63 4.61 3.82 

Current 52.73 54.2 55.75 57.01 56.54 43.15 

Total 58.19 60.85 68.49 66.64 61.15 46.97 

C. Balance 

Arrears 13.47 14.88 7.87 7.68 12.64 10.45 

Current 9.07 9.41 9.44 9.57 10.83 25.21 

Total 22.54 24.29 17.31 17.25 23.47 35.66 

II PROFESSION TAX- DEMAND, COLLECTION AND BALANCE 


A. Demand 

Arrears 2.37 0.73 0.81 0.11 0 0 

Current 6.37 6.68 9.97 10.58 10.75 11.75 

Total 8.74 7.41 10.78 10.69 10.75 11.75 

B. Collection 

Arrears 1.97 0.42 0.81 0.11 0.00 0.00 

Current 6.19 6.56 9.05 10.58 10.75 6.84 

Total 8.16 6.98 9.86 10.69 10.75 6.84 

C. Balance 

Arrears 0.4 0.31 0.00 0.00 0.00 0.00 

Current 0.18 0.12 0.11 0.00 0.00 4.91 

Total 0.58 0.43 0.11 0.00 0.00 4.91

S. 

No Particulars 

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2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 

Actuals 

Budget 

Est. 

III WATER CHARGES- DEMAND, COLLECTION AND BALANCE 


A. Demand 

Arrears N.A N.A N.A N.A N.A 4.71 

Current N.A N.A N.A N.A N.A 27.7 

Total 15.58 34.20 35.56 33.28 35.30 32.41 

B. Collection 



Total 15.15 30.62 33.97 29.57 31.67 23.07 

C. Balance 



Total 0.43 3.58 1.58 3.71 3.63 9.34 


8.10 Outstanding Loan and Non-Debt Liability 

The Outstanding Loan balance and Non-Debt Liability of key components of Sathymangalam 

Municipality is represented in Table 8-L. 

Table 8-L : Outstanding Loan and Non-Debt Liability 

S.No Particulars 

OUTSTANDING PRINCIPAL ON LOANS 

2007-08 

(Rs.in Lakhs) 

1 Loan from the Government 315.60 

2 HUDCO Loan Nil 

3 Loan from TNUDF Nil 

4 Loan from TUFIDCO- Special Road Projects 57.25 

5 Loan from TUFIDCO- Others Nil 

6 Others 57.78 

Source:Sathyamangalam Municipality, TUFIDCO and TNUIFSL 

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NON-DEBT LIABILITY (2005-06 (Rs.in Lakhs)) 

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1 Library cess 14.81 

2 Provident Fund 39.73 

3 Terminal Benefits 0.41 

4 Group Insurance Schemes 6.08 

5 Dues- TWAD Board 4.50 

6 Dues- Electricity Board N.A 

7 Survey Charges 8.27 


Note: Terminal Benefits includes Special PF cum Gratuity Scheme Recoveries + FBF/Group Insurance 

Scheme Recoveries

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9 INSTITUTIONAL 

INSTITUTIONAL INSTITUTIONAL FRAMEWORK 

FRAMEWORK 

9.1 Institutional Structure 

The organizational chart of Sathyamangalam Municipality and details of the staff strength for 

the various activities against the sanctioned list are given in Figure 9-1 and Table 9-A 

respectively. 

GENERAL : Financial matters, 

administration and Budget & Accounts 

PUBLIC HEALTH: Sanitation, Drainage, 

Public Health, Birth & death registration 

- 

TOWN PLANNING : Planning, Designing 

and Approval 

Figure 9-1 Organization chart of Sathyamangalam Municipality 


MUNICIPALITY 

Executive Body Elected Body 

Commissioner 

ENGINEERING: Water Supply, Road 

laying and Street lights 

REVENUE: Tax & Non Tax Collection 

Chairman 

VICE CHAIRMAN 

WARD COUNCILORS (25) 

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Table 9-A : The Staff strength of the Sathyamangalam Municipality 

Executive Staff Sanctioned Appointed Post Vacant 

Administrative/General 

Manager 1 1 0 

Asst.Programmer 1 1 0 

Assistant 2 2 0 

Jr.Asst. 7 7 0 

Typist 2 2 0 

Record Clerk 1 0 1 

Office Asst. 2 2 0 

Office Night Watchman 1 1 0 

Engineering 

Municipal Engineer 1 1 0 

Pipeline Fitter 2 2 0 

Turn cork 4 2 2 

Wiremen 1 1 0 

Wiremen to Helper 1 1 0 

Jeep Driver 1 1 0 

Cleaner 2 1 1 

H.w.Watchman 1 1 0 

Power Tiller Driver 1 1 0 

Over Sear 1 1 0 

Electrician 3 2 1 

Town Planning 

Town Planning Inspector 1 1 0 

Chainman 1 1 0 

Revenue 

Revenue Inspector 1 1 0 

Revenue Assistant 6 6 0

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Executive Staff Sanctioned Appointed Post Vacant 

Public Health 

Sanitary Inspector 3 1 2 

Sanitary Supervisor 6 6 0 

Field Assistant 1 1 0 

Sanitary Officer 1 1 0 

Maternity Assistant 1 1 0 

P.H. Lorry Driver 4 3 1 

Head Works helper 2 2 0 

Maternity Aya 1 0 1 

Sanitary Workers 128 110 18 

Source: Sathyamangalm Municipality 

o As seen from the above table the vacancies are few against the sanctioned limit. 

o However in the Public Health section, vacancies of 18 conservancy staff are yet to be filled 

up. This is critical for maintaining a hygienic a clean city. Staff Salary pay slip for one 

representative month of for all the sections have been enclosed in the Annexure 

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10 

10 DEMAND DEMAND ASSESSMENT 

ASSESSMENT 

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Physical Infrastructure gaps have been identified based on Demand Supply Gap 

analysis for the current and for future population for the intervals 2008-09, 2012 – 13, 

2017-18 and for 2022-23 whereas Social Infrastructure demand assessment is done 

based on the opinion and suggestions given by OWG members as well as on the basis 

of Rapid Urban Assessment. Demand Assessment is done separately for both Physical 

and Socio-economic Infrastructure and the same is presented in Table 10-A and Table 

10-B respectively. 

Table 10-A Demand Supply Gap Analysis for Physical Infrastructure 

Particulars 2008-09 2012-13 2017-18 2022-23 

Sathyamangalam projected 

population 

37887 39911 42104 44613 

Water Supply MLD 2008-09 2012-13 2017-18 2022-23 

Sathyamangalam water demand 5.1 5.4 5.7 6.0 

Existing Supply 4.3 4.3 4.3 4.3 

Gap 0.8 1.1 1.4 1.7 

Water Treatment Plant capacity in 

MLD 

2008-09 2012-13 2017-18 2022-23 

Demand for treatment plant capacity 5.1 5.4 5.7 6.0 

Existing Plant capacity 9.2 9.2 9.2 9.2 

Gap -4.1 -3.8 -3.5 -3.2 

Water Distribution Network in 

Kms 

2008-09 2012-13 2017-18 2022-23 

Existing distribution length in Kms 29.4 29.4 29.4 29.4 

Road length in Kms (exisitng and 

proposed) 

63.5 67.8 71.6 75.8 

Gap 34.1 38.5 42.2 46.5 

Water Service connections 2008-09 2012-13 2017-18 2022-23 

No of Assessments projected 8310 8754 9235 9785 

No of service connections 4388 5827 7850 8318 

% service connections existing & 

proposed 

53.0 67 85 85 

Gap 47 33 15 15 

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Particulars 2008-09 2012-13 2017-18 2022-23 

Storage capacity 2008-09 2012-13 2017-18 2022-23 

Existing Storage Capacity in MLD 3.3 3.3 3.3 3.3 

Storage capacity demand in MLD 1.7 1.8 1.9 2.0 

Gap in MLD -1.6 -1.5 -1.4 -1.3 

Sewage generation 2008-09 2012-13 2017-18 2022-23 

Sathyamangalam sewage generation 4.1 4.3 4.5 4.8 

STP capacity in MLD 2008-09 2012-13 2017-18 2022-23 

Proposed capacity 3.45 3.45 3.45 3.45 

Gap 0.6 0.9 1.1 1.4 

Sewer connections 2008-09 2012-13 2017-18 2022-23 

Proposed connections under UGSS 5000.0 5000.0 5000.0 5000.0 

Demand for sewer connections 5817 6128 6464 6850 

Gap 817 1128 1464 1850 

Sewer Network 2008-09 2012-13 2017-18 2022-23 

Sewer Network in Kms (Proposed ) 47.6 47.6 47.6 47.6 

Sewer Network Demand 54.0 57.7 60.8 64.5 

Gap 6.4 10.1 13.3 16.9 

Road network 2008-09 2012-13 2017-18 2022-23 

Existing road network in Kms 63.5 63.5 63.5 63.5 

Road length demand @ 1.7 meter per 

person 

67.8 71.6 75.8 

Gap 4.3 8.1 12.3 

Storm water drainage 2008-09 2012-13 2017-18 2022-23 

Sathyamangalam existing SWD 83.8 83.8 83.8 83.8 

Storm water drain demand 83 88 93 99 

Gap -1.25 4.40 9.25 14.79 

Solid waste generation 2008-09 2012-13 2017-18 2022-23 

Per capita waste in grams per day 370 384.53 404.14 424.76 

Sathyamangalam waste generation 14.0 15.3 17.0 18.9 

Growth rate assumed 1.00% 

Street Lighting 2008-09 2012-13 2017-18 2022-23 

Sathyamangalam existing lights 1389 1389 1389 1389 

Road length in Kms 63.5 67.8 71.6 75.8 

Street light demand @ one light per 

30 m 

2117 2262 2386 2528 

Gap 728 873 997 1139

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Table 10-B : Demand Assessment for Socio-Economic Infrastructure 

Particulars 

Project 

requirements 

New School creation Not required 

Existing school 

infrastructure upgradation 

Creating new health 


Existing Maternity center 

improvement 

Parks and Playfields 

development 

Vegetable Market 

Improvement 

Community Hall up 

gradation 

Required in 

Municipal High 

School 

Not required 

Required 

Required 

Required 

Slaughter house up gradation Not required 

Municipal building 

renovation 

Burial ground / Gasifier Required 

Upgrading Commercial 

complexes 

Projects proposed / Committed 

(Renovation project has already been 

proposed in Master Plan and Vision Plan) 

Renovation work is ongoing under Part II 

Scheme 

Park projects proposed in Vision Plan and 

Master Plan 

Additional projects need to proposed to 

develop approved layouts 

Improvement works proposed in Vision 

Plan 

Required Nil 

Required Nil 

Not required 

Creating new complexes Required 

Burial ground in Kottuveerampalayam is 

under renovation under Part II scheme. 

Renovation required in Rangasamudram 

Burial ground 

Gasifier is required after 2016. 

Project need to be proposed for Old 

chatiram land 

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11 CONSULTATION 

ONSULTATION WITH WITH OWG 

OWG 

11.1 Operational Working Group 

The success of the City Corporate cum Business Plan depends on the extent of 

participation by the various agencies involved in urban governance and service 

delivery. As it is very rightly said “Business Plan is an exercise ‘For’ the people, ‘Of’ 

the people and ‘By’ the people.” perception and views of the representatives from the 

municipality and various Para-Statal agencies are of paramount importance. 

To bring all the agencies involved in urban governance and service delivery under one 

platform for the consultation process, Operational Working Group (OWG) was 

formed. The first formal Operational Working Group (OWG) meeting was held in 

Sathyamangalam Municipality Office on 12.02.2008 and the second OWG meeting 

was held in 19 th December 2008. The OWG members had a wide representation from 

1. Administrative members of the Municipality 

2. Elected members of the Municipality 

3. Representatives from Slums /SC /ST 

4. Senior Citizens 

5. Self Help Groups 

6. Women Groups 

7. NGO members 

8. Officials from Para-Statal agencies 

During the first formal OWG meeting, the Consultants made a presentation on the 

Rapid Urban Assessment as well as the demand assessment including the current 

status of the Sathyamangalam Town in terms of Infrastructure, Financial and 

Institutional aspects. 

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Projects already identified by the Municipality and additional projects proposed by the 

Consultants based on the Demand Supply Gap analysis taking into consideration 

current and future needs and requirements were also presented and discussed during 

the meeting. During the presentation and subsequent interaction with OWG members, 

many ideas and suggestions were made and the same has been encapsulated below 

and the same has been considered and incorporated in this Report. 

Physical 


Water Supply 

Sewerage and 

Sanitation 

Table 11-A: Suggestions and projects 

Sector Components Key Suggestions / Projects identified 

Water Sources 

Head works and 

Pumping main 

ESR / GSR 

Distribution 

Network 

HSCs / Stand posts 

Underground 

Drainage 

• Erection of bore well with mini power pump 

• Digging of open well at head works 

• Replacement of old motors and pump sets 

• Laying 2 Km 12 inch PSC pumping main 

line in the proposed bye-pass road 

• OHT near Indira nagar with capacity 1 lakh 

is required by 2016. 

• Replacing distribution network for 5 Km 

with 4 inch PVC pipe 

• Replacing 8 inch CI pipe to 8 inch PSC pipe 

for 1.5 KM 

• Increasing the service connections by 85% 

by 2016 

• Implementing UGSS by 2011 

Public Toilets • Renovation / demolishing the existing one 

and creating new blocks in Ward .No : 19 

Mariamman koil street, in Ward No : 26 

Thaelkaradu street, 

• In Ward 21 (new toilet provision), and in 

Pillaiyar koil street. 

• Public toilets are required in Anna nagar,

Physical 


Storm Water 

Drainage 

Roads 

Traffic and 

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Pay and Use Toilets 

Renovating existing 

drains 

Kasikadu, Puduvalavu, Andavar Nagar, 

Kulankaradu, Mondikardu, 

Kambathrayaputhur and Thoopur colony (I 

more). 

• All these toilets can be managed in future 

by SHGs. Cost of construction of new toilet 

is estimated around Rs.5 lakh per toilet 

• No possibility of converting public into Pay 

and Use toilet 

• 80 % of the existing SWDs need to be 

rebuilt. 

• Storm Water Drainage proposal prepared 

under UIDSSMT for 9.16 KM has not yet 

implemented for a cost of Rs.147 lakhs. 

Creating New Drain • Creating closed drains in developing areas 

Kutcha road 

upgradation 

Pucca road 

improvement 

Building New 

Roads / Links 

Bye pass / Highway 

projects 

Transportation Traffic Management 

/ Junction 

Improvement 

• Converting 7% of the total road from 

Kutcha into BT road 

• Roads going to get damaged by the 

proposed UGD implementation has to be 

repaid (Relaying and restoration charges 

have already been incorporated in the UGD 

project cost) 

• Creating new roads with pucca storm water 

drain based on the demand supply gap 

• Creating 100 feet bye-pass road and 

improving Kolathur and Puliam kombai 

road as envisaged in Master Plan 

• Traffic rotary intersection required in 

Mettupalayam junction (NH control). 

• Traffic diversion islands in Attany road 

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Solid Waste 

Management 

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Bus stand / railway 

station Imp 

Door to Door 

collection and 

Segregation 

Man power / 

Privatisation 

Vehicle 

requirements 

Dumping site / 

Compost yard 

User Charges 

junction 

• Junction Improvement in Manikoondu 

Junction (Highway). 

• Traffic diversion islands in Tippu sultan 

Mysore trunk road junction improvement 

(NH) 

• Near Bus stand Petrol pump junction 

Improvement is required (NH) 

• Existing Bus stand Infrastructure facilities 

has to be improved as envisaged in Vision 

Plan 

• Bus stand extension is required as envisaged 

in Master Plan. 

• Municipality is open to the idea of waste 

segregation at source 

• Private sponsorship such as Bannari sugar 

mills can be roped in sponsoring the bins 

for waste segregation at household level 

• Protective gear has already been acquired 

for conservancy workers 

• Dumper placer (2 Nos) is required @ 12.5 

lakhs each. 

• 12 DP bins are required @50,000 per bin 

• Procuring two bins for each household with 

private sponsorship 

• Purchasing land as envisaged in Master Plan 

• Not open to collection of user charges for 

SWM 

Public Awareness • Public Awareness is required for waste

Physical 


Street Lighting 

Social 


Schools 

Hospitals / 

Primary Health 

centers 

Parks and 

Playgrounds 

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Energy Saving 

Initiatives 

segregation at source 

• Asian electronics is undertaking energy 

investment grade audit on street lighting and 

water pumping system to assess and 

establish the current data on energy 

consumption output levels, operating 

conditions in terms of hours of usage, 

system line diagram etc. It’s a five year 

contract. After establishing 30 % savings 

possibility, they will enter into an agreement 

with the municipality for 5 years contract 

with profit sharing ratio of 73 : 27 

Sector Components Key Suggestions 

New school 

requirements 

Renovation of 

existing Schools 

Improvements in 

existing health 

centers 

Proposed parks and 

Playgrounds 

• Not required 

• Municipal high School require renovation of 

existing building, CAD centre, Sports 

Materials, furniture, toilet renovation, water 

supply improvements and lighting 

arrangements (Renovation project has 

already been proposed in Master Plan and 

Vision Plan) 

• Maternity centre is already getting improved 

under Part II Scheme 

• Parks and Playgrounds need to be developed 

as envisaged in vision and master plan 

Approved layout • Additional Parks and playgrounds are 

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Daily / Weekly 

Market 

Community 

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for parks and 

playgrounds 


Improvement 

Revenue 

Enhancement 

measures 

Creating 

Community hall 

hall Upgrading existing 

Slaughter 

House 

Maternity 

Center 

Municipal 

building 

Burial grounds 

halls 

Slaughter house 

improvement 

scheme 

New center 

Requirements 

Improvements in 

existing Maternity 

centers 

Creating new blocks 

/ Improving existing 

blocks 

/ Gasifier Burial ground 

Improvement 

required in 11 approved layouts 

• Developing Vegetable Market area as 

envisaged in Vision Plan 

• Can expect more revenue after providing 

better infrastructure 


• Renovating Community hall (dining hall in 

first floor, Bride and groom room with 

attached toilet, compound wall with CC 

pavement in the setback areas) 

• No slaughter house improvement is required 


• Maternity center is being improved under 

Part II scheme at an estimated cost of Rs. 5 

lakh and is planned to be completed by 

March 2008. 

• Computer Hall needs to be demolished and 

reconstructed at an estimated cost of Rs.5 

lacs and chairman’s block need to be 

reconstructed(150 sq meters) 

• Out of 3 Burial ground Kootuveeram 

palayam is under renovation at a cost of Rs. 

10 lakhs funded through part II scheme and

Social 


Commercial 

complexes / 

Shops 

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to be completed by march 2008. 

• Burning shed, waiting shed, toilet 

improvement, road improvement, 

construction of Watchmen’s room cum 

vehicle shed and installation of street lights 

are required in Rangasamudram at an 

approximate cost of Rs. 10 lakhs. 

Gassifier provision • Gassifer is required after 2017 

Creating new 

complexes 

Upgrading existing 

shops 

• Revenue enhancement – Old chatiram land 

is about 1423 Sq. meters in which 810 

meters can be developed as commercial 

complex in the ground and offices in the Ist 

floor. Construction of compound wall and 

parking space. (Estimated cost Rs.25 lakhs). 

• No renovation is required for commercial 

complexes. 

Sector Sector Components Key Suggestions 

Slums and 

Urban Poverty 

Toilet provision in 

slum areas 

Other Infrastructure 

provisions 

• Toilet provision in Anna Nagar, KAsikadu, 

Puduvalavu, Andavarnagar, Kullankaradu, 

Mondikaradu, Kampathrayaputhur and 

Thoppur Colony 

• Implementing IHSDP project 

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Institutional 

Framework 

Privatization / 

Cost Recovery 

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Areas for 

privatization 

User charges 

• Currently Street Lighting 

• Currently not open to collection of user 

charges for SWM 

11.2 Priority based on OWG opinion survey 

Projects identified both by the Municipality and by the consultants cannot be taken at 

one step for implementation due to constraints like finance, institutional capabilities 

etc. Thus, phasing of the projects based on stake holder’s priority could be a viable 

option for implementing projects. During OWG meeting, Stakeholders have been 

asked to prioritize the sectors pertaining to Physical infrastructure, Social 

Infrastructure and Environment and is presented in a scale of 0-100 1 scores. 

11.2.1 Physical infrastructure priority 

Based on the opinion survey conducted during OWG meeting, Stakeholders have 

given priority to the sectors related to Physical infrastructure on the following order: 

1. Under Ground Drainage 

2. Drinking Water Supply 

3. Road Network 

4. Parking facilities 

5. Street lighting 

6. Solid Waste Disposal 

7. Storm Water Drainage 

1 Sector is highly prioritized by the Stakeholders if it gets 100 score and least prioritized if it 

gets 0 score.

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Figure 11-1 Sector prioritization by the Stakeholders (Physical Infrastructure) 

Parking Facilities 


SW Disposal 

SW Drainage 

UG Drainage 

Drinking Water 

Road 

54.72 

62.26 

58.49 

77.36 

100.00 

90.57 

88.68 

0 20 40 60 80 100 

11.2.2 Social infrastructure priority 

Based on opinion survey conducted during OWG meeting, Stakeholders have given 

priority to the sectors related to Social infrastructure on the following order: 

1. Parks, Playfields 

2. Public Transport 

3. Community Hall 

4. Health facilities (Maternity Center) 

5. Schools / Colleges and Burial ground / Gasifier crematorium 

6. Slaughter House 

7. Daily Market 

Figure 11-2 Sector prioritization by the Stakeholders (Social Infrastructure) 

Daily M arket 

Slaughter House 

Burial Ground/Crematorium 

Community Hall 

Health facilities 

Schools & Colleges 

Public Transport 

Park and Playfield 

Source : Survey findings 

28.79 

30.30 

37.88 

45.45 

42.42 

37.88 

65.15 

100.00 

0.00 20.00 40.00 60.00 80.00 100.00 

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Based on opinion survey conducted during OWG meeting, Stakeholders have given 

priority to the Environmental Issues on the following order: 

1. Air pollution 

2. Water Pollution 

3. River/Lake 

4. Noise Pollution 

5. Land Pollution 

6. Flood 

7. Open space inadequacy in the form of parks / Playgrounds 

8. Drought 

Figure 11-3 Sector prioritization by the Stakeholders (Environmental Issues) 

Drought 

Floods 

Open space 

Noise Pollution 

Land Pollution 

Water Pollution 

Air Pollution 

River/Lake 

Source: Survey findings 

19.70 

25.76 

28.79 

40.91 

39.39 

56.06 

66.67 

100.00 

0.00 20.00 40.00 60.00 80.00 100.00 

Figure 11-4 Consultation with OWG members in Sathyamangalam

TNUIFSL 


During the OWG meeting held on 19 th December 2008, the Consultants made a 

presentation on the projects identified, reforms required for implementing the projects 

and the funding pattern for the projects identified under sustainable scenario. 

Comments and suggestions received during the consultation have been incorporated in 

this final report. 

Figure 11-5 OWG consultation for Report Finalisation 

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Based on Stake holder’s perception and view points expressed in the OWG meetings 

and on the basis of assessment done by the consultants, an attempt has been made to 

evaluate Strength, Weakness, Opportunities and threats of the city which is shown 

below: 

Strength 

Sathyamangalam lies on Coimbatore 

Mysore Highway NH – 209. 

Bhavani river traversing across the town – 

a good source for water supply 

Proximity to Tourist spots like Bhavani 

Sagar, Kodiveri Dam and Bannari Amman 

Temple. 

Town has Bannari Amman Sugar factory, 

Bannari Amman Engg College and 

Kamadenu Arts College in its vicinity. 

Waste treatment by Windrows method 

E-governance and Privatization initiatives 

Weakness 

It has no railway link and the nearest 

railway station is Mettupalayam at a 

distance of 43 Kms. 

High dependence on Agriculture and 

allied activities even though it is 

classified as an urban town. 

Nominal growth due to absence of 

Industrialization and enhanced 

commercial activities / trading. 

Only 10.5 percent of the total area is 

developed. 

Opportunities 

Proposed Infrastructure Projects such 

as UGD, Energy Saving Initiatives, 

and Bye-pass project can augur well 

for future development. 

Redefining the Municipal Boundary 

limits for effective Management and 

Administration 

Threats 

Huge Investment requirements to 

provide Infrastructure to the scattered 

settlements on the North side. 

Poor financials deters Municipality 

from taking Capital Intensive projects 

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13 CONSOLIDATED CONSOLIDATED ISSUES 

ISSUES 

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The issues identified during Rapid Urban Assessment as well as the issues indicated 

by the OWG members were consolidated sector wise and are presented below: 

Table 13-A: Consolidated Issues 

Sector Issues 

Water Supply 

• Service coverage by HSCs (53%) 

• Vastness of area and scattered settlements 

• Huge Infrastructure requirements to provide water supply to the entire 

area 

• More than 50% of the roads are uncovered by Distribution network 

• Rangasamudram water supply scheme, being in operation from 1966 

require improvements and up gradation 

Sewerage • Scattered settlements are not covered under UGSS 

Storm 

water 

drainage 

Traffic and 


Solid Waste 

management 

• All drains are open 

• 80 % of the existing drains need renovation. 

• 10 percent of the existing drains are Kutcha 

• Traffic congestion on Coimbatore – Mysore NH road, Kolathur and 


• Intersections are poor in geometrics. 

• Bus Stand infrastructure inadequacy 

• Bus parking space is inadequate to cater future demand 

• 7 percent of the existing roads are Kutcha 

• Inadequate space for Dumping and Treatment 

• Inadequate vehicle capacity 

• 5 wards are not covered under D-D collection system and waste 

segregation 

Street lighting • Spacing between lights is more than 30 Meters 

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

13-1

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

13-2 

Sector Issues 

Slums and 

Urban Poverty 

Social 


Urban 

Finance 

Capacity 

Assessment 

TNUIFSL 

• Energy saving devices are not yet adopted 


• Large number of slum pockets (16) and large proportion of BPL 

population 

• 7 slum pockets have no public conveniences. 

• Slum Population per SP is very high 

• 12 approved open spaces and layout are still undeveloped 

• Municipal High school has AC and tiled roofing of about 30 years old. 

• Community hall has no compound wall, no Dining hall, no bride and 

groom room and the setback areas are of earthen type. 

• Rangasamudram burial ground has infrastructure inadequacies 

• Vegetable market buildings are in bad shape and it requires CC 

pavement, Toilet, water supply and lighting arrangements. 

• High Dependence on external sources (Revenue) 

• Stagnating Income (Around 2 Crores - Revenue) 

• Deficit budget (Revenue) & Surplus budget (Water Fund) 

• Sluggish growth in number of property tax assessments (under 2 %)

14 

14 

TNUIFSL 


14 SECTORAL SECTORAL STRATEGY STRATEGY AND AND ACTION ACTION 

ACTION 

PLAN PLAN 

PLAN 

In order to address the issues identified during rapid urban assessment stage and 

during OWG meetings, the sectoral strategies and action plans have been proposed 

which are converted into projects and are phased out based on the priority suggested 

by the OWG members, which is explained in the subsequent chapters. 

14.1 Sectoral Strategy 

Water Supply 

Action plans for improving the existing situation of various sectoral components as 

well as for creating new infrastructure facilities have been formulated in consultation 

with the Operational Working Group members and are listed below: 

Table 14-A Action Plan for future development of the town 

Sector Sectoral Strategy / Action Plan 

Sewerage and Sanitation 

Storm Water Drainage 

• OHT near Indira Nagar by 2017-18 (1 lakh capacity) 

• Replacing old worn out distribution network for 5 Km 

• Replacing 8 inch CI pipe with 8 inch PSC pipe for 1.5 km 

• Laying 2 Km 12 inch PSC pumping main line in the proposed bye- 

pass road. 

• Erection of bore well with mini power pump proposed under Vision 

Plan 

• Digging of open well at head works proposed under Vision Plan 

• Replacement of Old motors and pump sets proposed under Vision 

Plan 

• Laying new distribution network for 21.5 Km by 2017-18 and 2.13 

Km by 2022-23. 

• City with sewerage system by 2012-13 

• Creating New Public toilets in Ward No. 19 Mariamman Koil 

Street and in Ward No. 26 Thelkaradu street. 

• Laying Storm Water Drainage lines identified in UIDSSMT 

proposal – 9.16 kms 

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

14-1

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

14-2 

TNUIFSL 



Solid Waste Management 

Roads, Traffic and 



• Renovating existing Storm Water Drainage lines (Nearly 80% are 

in bad condition) – 67 Kms 

• Creating new closed drains for 9.25 kms by 2017-18 and 5.5 kms 

between 2017-18 and 2022-23. 

• Purchasing Dumper Placer vehicles (2 Nos) and bins (12 Nos) 

• Providing Separate bins for Waste Segregation at source to all 

households with Private participation 

• Adopting D – D collection and waste segregation in all wards 

• Providing protective gear for Conservancy workers once in two 

years. 

• Creating new roads for 4.3 Kms by 2012-13, 3.7 Kms by 2017-18 

and 4.3 Kms by 2022-23. 

• Converting Kutcha roads into Pucca BT roads – 4.5 Kms 

• Relaying existing and newly created Bitumen roads once in every 

three years. 

• Creating rotary intersection at Mettupalayam Junction 

• Traffic island provision in Attany Road Junction and Tippu Sultan 

Mysore Trunk Road Junction. 

• Junction improvement in Manikoondu Road Junction and Bus 

Stand Petrol Pump Junction. 

• Improving Kolathur and Puliamkombai Road (Master Plan 

proposal) 

• Creating Bye-pass road and creating Truck Terminal (Master Plan 

proposal) 

• Adopting energy saving street lighting systems like CFL and FTL 

lamps, Voltage Controller & Timer and Electronic Chokes. 

• Involving private agencies for operation & maintenance of street 

lighting and to reduce energy consumption. 

• Installing Energy saving street lights 873 by 2012-13, 124 by 2017- 

18 and 142 by 2022-23. 

• Improvements to the existing municipal high school as envisaged in 

Socio-Economic 

Master Plan 

Infrastructure • Developing 11 approved layouts into parks and playfields. 

• Infrastructure Improvement in Vegetable market area

TNUIFSL 



Slums and Urban Poverty 

Urban Finance 

Institutional Framework 

• Renovating Rangasamudram Burial ground 

• Creating Gasifier crematorium in the third phase. 

• Constructing office space and Shops in Old Chatiram land 

• Renovating existing Community hall. 

• Creating more office space in Municipal Building. 

• Improving existing bus stand as per Vision Plan and Bus stand 

expansion as per Master Plan 

• Implementing IHSDP proposal 

• Upgrading Kullan karadu slum as envisaged in Vision Plan. 

• Providing public toilets in Anna Nagar, Kasi kadu, Puduvalavu, 

Andavar Nagar, Kullankaradu, Mondikardu, Kambathrayaputhur 

and Thoopur colony slums 

• Revision in Property Taxes every five years. 

• Periodic revision in monthly charges and deposit charges for water 

supply and sewerage 

• Gradual and phased introduction of User charges for Solid Waste 

Management backed by revision in charges every five years. 

• Achieving close to cent percent collection efficiency in Tax and Non 

Tax revenue. 

• Achieving 85% service coverage in water supply by 2017-18. 

• Achieving 70% service coverage in Sewerage. 

• Privatization and outsourcing of critical services like O & M of Solid 

Waste Management, Water and Sewerage systems to be introduced 

gradually. 

• Qualitative computerization and E-Governance of all the modules. 

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

14-3


T 

N 

15 CAPITAL CAPITAL INVESTMENT INVESTMENT PPLAN 

P LAN 

15 

15 

U 

D 

The Capital Investment Plan (CIP) identifies the investment requirement of the town without taking into consideration the financial 

feasibility of the projects, which would be covered in Financial Operating Plan (FOP). Sathyamangalam investment requirement is Rs 

P 

5388.56 lakhs. Consolidated Sector wise Investment requirement for Sathyamangalam Municipality is shown in Table 15-A. 

Table 15-A : Consolidated Sector wise Capital Investment requirements 

Rs. in Lakhs 

I 

Project Sector Total Investment 2008-09 to 2012-13 2013-14 to 2017-18 2018-19 to 2022-23 

Water Supply 326.75 133.05 180.90 12.80 

III 

UGD 2042.00 2042.00 0.00 0.00 

Sanitation 85.00 35.00 50.00 0.00 

Final 

Report 

15-1 

Storm Water Drainage 1379.07 100.00 1150.03 129.04 

Solid Waste Management (Bins 

253.49 167.91 42.11 43.47 

and Gear) 

Solid Waste Management without 

45.99 45.99 0.00 0.00 

bins and gear 

Roads, Traffic and Transportation 831.00 226.50 296.12 308.38 

Street Lighting 60.76 48.79 5.58 6.39 

Socio-Economic Infrastructure 410.50 325.50 20.00 65.00 

TOTAL CAPEX 5388.56 3078.75 1744.74 565.08 

TNUIFSL


T 

Figure 15-1 Sector wise percentage share 

N 



8% 

U 


1% 

Water Supply 

6% 

D 



15% 

UGD 

37% 

P 

Solid Waste 

Management without 

bins and gear 

1% 

I 

Solid Waste 

Management 

5% 

Sanitation 

2% 

III 


25% 

Final 

Report 

15.1 CIP for Physical Infrastructure sectors 

15-2 

During OWG meetings and on the basis of demand supply gap analysis, various works have been identified under different sectors 

like Water Supply, Sewerage, Solid Waste Management, Storm Water Drains, Roads and Street Lighting which are classified as 

Physical Infrastructure sectors. The Budget Estimates for the identified projects have been carried out based on TWAD Board 

TNUIFSL


T 

Standard Schedule of Rates 2007-08, market rates and with some assumptions on the technical aspects. Wherever the estimates are 

N 

available with the Municipality the same has been considered for those works 

U 

15.1.1 Water Supply 

D 

Various works have been identified under Water Supply Sector on the basis of OWG suggestion and on the basis of Demand Supply 

Gap analysis. The works identified and phase wise investment for the various works are listed in Table 15-B. 

P 

The total estimated cost for the Water Supply Works - Rs. 326.75 lakhs. 

Implementing Agency – Sathyamangalam Municipality 

I 

Project Manager – Municipal Engineer 

III 

Table 15-B - Project List and Budget Estimates for Water Supply Works 

Rs. in Lakhs 

Final 

Report 

15-3 

Phasing 

Implementing 

Project List Remarks Estimated 2008-09 to 2013-14 to 2018-19 to Agency 

cost 2012-13 2017-18 2022-23 

OHT near Indira Nagar (1 lakh Based on Demand 

10.00 0.00 10.00 0.00 Municipality 

capacity) by 2017 

supply Gap Analysis 

Replacing distribution network 5 Identified during 

12.14 12.14 0.00 0.00 

Km 4 inch PVC 

OWG meeting 

Municipality 

Replacing 8 inch CI pipe to 8 inch Identified during 

36.91 36.91 0.00 0.00 

PSC pipe for 1.5 KM 

OWG meeting 


Laying 2 Km 12 inch PSC Identified during 

44.06 0.00 44.06 0.00 

pumping main line in the proposed OWG meeting 


TNUIFSL


T 

Implementing 

Agency 

2018-19 to 

2022-23 

Phasing 

2008-09 to 2013-14 to 

2012-13 2017-18 

Project List Remarks Estimated 

cost 

N 

bye-pass road 

Erection of bore well with mini 

power pump 

Digging of open well at head 

works 

Replacement of old motors and 

pump sets 

U 

Vision Plan 54.00 54.00 0.00 0.00 Municipality 


D 


P 


139.64 0.00 126.84 12.80 

Based on demand 

supply gap analysis 

(50% of the gap 

has taken for 

capital works) 

Laying new distribution network 

for 21.1 Km by 2017 and 2.13 Km 

by 2022 

I 

Digging of Bore Well at 

Identified during 

15.00 15.00 0.00 0.00 

Kombupallam ( 5 Nos) 

OWG meeting 


Total for Water Supply Works: 326.75 133.05 180.90 12.80 

III 

15.1.2 Sewerage and Sanitation 

Final 

Report 

DPR for Under Ground Sewerage Scheme for Sathyamangalam municipality has already been prepared under TNUDP III. As per 

vision plan, two public toilets have been proposed. During OWG meeting, toilet block requirements have been identified. Detailed 

list of works, costing and phase wise implementation is given in Table 15-C. 

15-4 

The total estimated cost for the Sewerage & Sanitation Works - Rs. 2127 lakhs. 

Implementing Agency – TWAD / Sathyamangalam Municipality 

Project Manager – Executive Engineers from TWAD / Municipal Engineer 

TNUIFSL


T 

N 

Table 15-C Project List and Budget Estimates for Sewerage and Sanitation Works 

U 

Rs. in lakhs 

D 

P 

I 

III 

Final 

Report 

15-5 

Phasing 

Implementing 


cost 2012-13 2017-18 2022-23 

TNUDP III 

TWAD / 

UGSS for Sathyamangalam (Revised 

2042.00 2042.00 0.00 0.00 


project cost) 

Identified 

Creating new toilet blocks (5 

during OWG 


Nos) 

meeting 

Provision of Public 

Conviniences (2 Nos) - W.No 

Vision plan 10.00 10.00 0.00 0.00 Municipality 

: 19 Mariamman koil street, 

W.No : 26 thaelkaradu street, 

Creating new toilet blocks in 

Anna nagar, Kasi kadu, 

Puduvalavu, Andavar Nagar, 

Identified 

Kulankaradu, Mondikardu, 

during OWG 


Kambathrayaputhur and 

meeting 

Thoopur colony (I more), in 

Ward no 21 and in Pillaiyar 

koil street 

Total for Sewerage and Sanitation Works 2127 2077 50 0 

TNUIFSL


T 

15.1.3 Storm Water Drainage 

N 

Under Storm Water Drainage Scheme, works like construction of new closed drains as part of UIDSSMT Scheme and construction of closed 

drains identified based on Demand & Supply gap analysis are considered. The works identified and phase wise investment for the various 

U 

works are listed in 

Table 15-D. 

D 

The total estimated costs for the Storm Water Drainage Works - Rs. 1379.07 lakhs 

P 

Implementing Agency – Sathyamangalam Municipality 


I 

Table 15-D Project List and Budget Estimates for Storm Water Drainage Works 

Rs. in Lakhs 

III 

Phasing 

Implementing 

agency 

2018-19 to 

2022-23 

2013-14 to 

2017-18 

2008-09 to 

2012-13 


cost 

Final 

Report 

147 0.00 147 0.00 Municipality 

UIDSSMT 

scheme 

Provision of SWDs for 9.16 

Km 

Replacing 80% of the 

existing SWDs (67 Km); 

{Currently only 40% of the 

existing drains (33.5 km) are 

taken for capital works} 

15-6 

786 0.00 786 0.00 Municipality 

Based on 

Demand Supply 

Gap analysis 

TNUIFSL


T 

N 

Phasing 

Implementing 

agency 

2018-19 to 

2022-23 

2013-14 to 

2017-18 

2008-09 to 

2012-13 


cost 

U 

D 

P 

Creating new closed drains Based on 

for 9.25 Km upto 2017 and demand supply 346.07 0.00 217.03 129.04 Municipality 

5.5 km between 2017-2022 gap analysis 

Pyannan Kuttai Channel ( 

Desilting and Lining- 2 Kms) Identified 

from Kulathur Road Junction during OWG 


to River Bhavani 10 Meter meeting 

wide 

Total for Storm Water Drainage Works 1379.07 100.00 1150.03 129.04 

I 

15.1.4 Solid Waste Management 

III 

Protective gear for conservancy workers is proposed in such a way that workers would get protective gear once in two years (50% 

workers is planned to be covered each year). In addition, Household segregation bins (2 Nos) are proposed for each assessment in 

Sathy Municipality with due consideration given to projected assessments also. Household segregation bins are proposed to be 

Final 

Report 

replaced once in 5 years. 

The total estimated costs for the Solid Waste Management Works - Rs. 253.49 lakhs 

15-7 

Implementing Agency – Sathyamangalam Municipality / Private sponsorship / private developers 


TNUIFSL


T 

Table 15-E Project List and Budget Estimates for Solid Waste Management Works 

Rs. In lakhs 

N 

Phasing 

Implementing 


cost 2012-13 2017-18 2022-23 

Purchasing Dumper placer 


vehicle (2 Nos) 

Identified 

Purchasing 12 Dumper 

during OWG 


placer bins 

meeting and 

Protective gear for based on Rapid 57.75 19.25 19.25 19.25 Municipality 

Conservancy worker Urban 

Procuring Separate bins Assessment 

for Waste Segregation at 

Municipality / 

68.75 21.67 22.86 24.22 

source for each household 

Sponsorship 

(with private sponsorship) 

Improving exisiting Identified 

compost yard in Attany during OWG 


Road 

meeting 

Based on 


Contribution to the 

Rapid Urban 

45.99 45.99 0.00 0.00 Other 

Regional Landfill Facility 

Assessment 

municipalities 

Total for Solid waste Management Works 253.49 167.91 42.11 43.47 

U 

D 

P 

I 

III 

Final 

Report 

15.1.5 Roads, Traffic and Transportation 

15-8 

Under this sector it is proposed to construct new roads, converting earthen road to BT roads and providing infrastructure facilities to 

bus stand. Projects, for which the implementing agencies are Highways and other para-statal agencies, have also been identified. 

TNUIFSL


T 

For budget cost estimates unit rates per km length are considered. The works identified and phase wise investment for the various 

N 

works are listed in Table 15-F 

U 

The total estimated cost for the Roads, Traffic and Transportation Works - Rs. 831.00 lakhs (Municipal project cost) 

Implementing Agency –Sathyamangalam Municipality / Highways 

D 

Project Manager – Highway Executive Engineers / Municipal Engineer 

Table 15-F Project List and Budget Estimates for Roads, Traffic and Transportation Works 

P 

Rs. in Lakhs 

Implementing 

Phasing 

Project List Remarks 

I 

Agency 

2018-19 to 

2022-23 

2013-14 to 

2017-18 

2008-09 to 

2012-13 

Estimated 

cost 

III 


Based on demand supply 

gap analysis 


Identified during Rapid 

Urban Assessment 

Final 

Report 


Based on demand 

supply gap analysis 


15-9 

358.56 0.00 179.28 179.28 

Identified during Rapid 



Highway 

Identified during OWG 

meeting 


meeting 

Creating new roads for 4.3 

Km by 2012, 3.7 Km by 

2017 and 4.3 Km by 2022 

Converting 4.5 Km earthen 

roads into BT road 

Relaying new roads after 3 

years of its implementation 

(4.3 + 3.7and 4.5 Km) 

Relaying 47.18 Km BT roads 

after UGD Implementation 

(Relaying cost for I phase is 

included in UGSS) 

Improvement Kolathur and 

Puliam Kombai Road 

Rotary intersection in 

Mettupalayam junction 

TNUIFSL


T 

Implementing 

Phasing 

Project List Remarks 

Agency 

N 

2018-19 to 

2022-23 

2013-14 to 

2017-18 

2008-09 to 

2012-13 

Estimated 

cost 

Traffic Island provision in Identified during OWG 

Highway 

Attany road Junction meeting 

Junction Improvement in Identified during OWG 

D 

Highway 

Manikoondu road Junction meeting 

Traffic island provision in 


Tippusultan Mysore trunk 

Highway 

P 

meeting 

road junction 

Junction Improvement near 


Bus stand Petrol pump 

Highway 

meeting 

I junction IMP 

Providing Infrastructural 

facilities to the existing Bus Vision Plan 32.00 32.00 0.00 0.00 Municipality 

stand 

Laying bye-pass road - 100 Master Plan proposal; 

Highway 

feet road of 5.8 km length Project cost 100 lacs 

improving kolathur and Master Plan proposal; 

Highway 


Project cost 50 lacs 

Final widening existing bus stand Master Plan proposal 80.00 80.00 0.00 0.00 Municipality 

Report 

Grant from 

Construction of truck Master Plan proposal; 

Town & 

terminal 

Project cost 80 lacs 

Country Plg. 

15-10 Total for Roads, Traffic and Transportation 831 226.5 296.12 308.38 

U 

III 

TNUIFSL


T 

N 

15.1.6 Street Lighting 

Under this sector it is proposed to manage the street lighting and energy saving mechanism through private partnership. The phase 

U 

wise implementation details and costing is given in Table 15-G. 

The total estimated cost for Street Lighting – Rs. 60.76 lacs 

D 

Implementing Agency –Sathyamangalam Municipality / PPP 


P 

Table 15-G Project List and Budget Estimates for Street Lighting Works 

Rs. in Lakhs 

I 

Implementing 

Agency 

2018-19 to 

2022-23 

Phasing 

2008-09 to 2013-14 to 

2012-13 2017-18 


cost 

III 


PPP 

51.26 39.29 5.58 6.39 

Based on 

Demand Supply 

Gap Analysis 

Final 

Report 


PPP 

2.00 2.00 0.00 0.00 

Based on TERI 

Report No. 

20051B33 

Installing energy saving 

streetlights 873 by 2012; 124 

by 2017 and 142 by 2022 

Replacing the inefficient 

pumps with new pumps to 

reduce the power consumption 

for Scheme 1&2 

15-11 


PPP 

3.50 3.50 0.00 0.00 

Based on TERI 

Report No. 

20051B34 

Installation of voltage 

controller& timers 


PPP 

4.00 4.00 0.00 0.00 

Based on TERI 

Report No. 

20051B35 

Installation of electronic 

chokes in place of 

conventional copper chokes 

and 36 w tube lights 

Total for Street Lighting 60.76 48.79 5.58 6.39 

TNUIFSL


T 

15.1.7 Socio-economic Infrastructure 

N 

Socio-Economic Infrastructure works are identified based on Demand Supply Gap analysis, during OWG meetings and from master 

plan proposals. These works include improving the existing municipal school building, Parks and Playgrounds, construction of 

U 

community hall, slum improvement works, Gasifier, renovation of slaughter house, burial ground and upgrading the daily and weekly 

markets. Project list and Budget estimates for Socio-Economic Infrastructure works are listed out in Table 15-H. 

D 

The total estimated cost for Socio-economic Infrastructure works – Rs. 410.5 lakhs. 

Implementing Agency –Sathyamangalam Municipality, PPP mode for developing parks, land development. 

P 


Table 15-H Project List and Budget Estimates for Socio-Economic Infrastructure 

I 

Rs. in Lakhs 

Implementing 

Phasing 

Agency 

2018-19 to 

2022-23 

2013-14 to 

2017-18 

2008-09 to 

2012-13 


cost 

III 


Master Plan 

proposal 

3.50 3.50 0.00 0.00 

Improvements to the existing 

Final municipal high school 

Report 

Parks and playfield development 


PPP 


PPP 


PPP 

55.00 15.00 20.00 20.00 

Master plan 

proposal 


OWG meeting 

Vision Plan 71.50 71.50 0.00 0.00 

Developing 11 approved layouts 

15-12 into parks and playfields 

Developing vegetable market 

area 


Based on Rapid 


IHSDP 

TNUIFSL


T 

N 

Implementing 

Phasing 

Agency 

2018-19 to 

2022-23 

2013-14 to 

2017-18 

2008-09 to 

2012-13 


cost 

U 



OWG meeting 

Renovating Rangasamudram 

Burial ground 

D 

Slaughter house 20.00 20.00 0.00 0.00 Municipality 

P 

I 

III 

Final 

Report 


Creating Gassifier after 2017 


OWG meeting 

Constructing office space and Identified during 


25.00 25.00 0.00 0.00 

Shops in Old Chatiram land OWG meeting 

PPP 

Renovating Community hall 

(dining hall in I floor, Bride and 


groom room with attached toilet, 


OWG meeting 

compound wall with CC 

pavement) 

Creating 150 Sq.m space by 

demolishing Chairman's block Identified during 


Concrete roofing for Computer OWG meeting 

Hall 

Total for Socio Economic Infrastructure Works 410.5 325.5 20 65 

15-13 

TNUIFSL


T 

15.2 Consolidated Capital Investment Plan 

N 

U 

15.2.1 First Phase Investment Plan (2008-09 to 2012 – 13) 

First Phase investment plan for Sathyamangalam is given in Table 15-I. The total Estimated Cost for all the Sectors is Rs. 3078.74 

D 

lakhs. The total estimated cost after considering escalation for I phase is Rs. 3414.32 lakhs which is shown in Table 15-J. 

Table 15-I First Phase Capital Investment Plan for Sathyamangalam Municipality 

P 

Rs. in Lakhs 

Total 

Project Sector 

2008-09 2009-10 2010-11 2011-12 2012-13 

Investment 

Water Supply 133.05 27.14 69.00 36.91 0.00 0.00 

UGD 2042.01 680.67 680.67 680.67 0.00 0.00 

Sanitation 35.00 10.00 25.00 0.00 0.00 0.00 

Storm Water Drainage 100.00 0.00 100.00 0.00 0.00 0.00 

I 

III 

55.42 100.11 4.12 4.13 4.13 


(Bins and Gear) 167.91 


without bins and gear 45.99 

Final 

Report 

0.00 45.99 0.00 0.00 0.00 

Roads, Traffic and Transportation 

0.00 50.00 0.00 64.25 112.25 

226.50 

Street Lighting 48.80 17.36 7.86 7.86 7.86 7.86 

Socio-Economic Infrastructure 325.50 243.00 39.00 18.50 25.00 0.00 

TOTAL CAPEX 3078.74 1033.58 1071.63 748.06 101.23 124.24 

15-14 

TNUIFSL


T 

Table 15-J First Phase Capital Investment Plan for Sathyamangalam Municipality (after considering escalation cost) 

N 

Rs. in Lakhs 

U 

D 

P 

Total 


2008-09 2009-10 2010-11 2011-12 2012-13 

Investment 

Water Supply 147.30 28.50 76.07 42.73 0.00 0.00 

UGD 2253.09 714.70 750.44 787.96 0.00 0.00 

Sanitation 38.06 10.50 27.56 0.00 0.00 0.00 



(Bins and Gear) 183.62 58.19 110.37 4.77 5.02 5.27 


without bins and gear 50.70 0.00 50.70 0.00 0.00 0.00 

I 

276.48 0.00 55.13 0.00 78.10 143.26 


III 



TOTAL CAPEX 3414.32 1085.26 1181.48 865.97 123.05 158.56 

Final 

Report 

15-15 

TNUIFSL


T 

15.2.2 Second Phase Investment Plan (2013-14 to 2017 – 18) 

N 

Second Phase investment plan for Sathyamangalam is given in Table 15-K. The total Estimated Cost for all the Sectors is Rs. 

U 

1744.74 lakhs. The total estimated cost after considering escalation for I phase is Rs. 2600.43 lakhs which is shown below. 

Table 15-K Second Phase Capital Investment Plan for Sathyamangalam Municipality 

D 

Rs. in Lakhs 

Total 


2013-14 2014-15 2015-16 2016-17 2017-18 

Investment 

Water Supply 180.90 54.06 31.71 31.71 31.71 31.71 

UGD 0.00 0.00 0.00 0.00 0.00 0.00 

Sanitation 50.00 10.00 10.00 10.00 10.00 10.00 



24.65 4.36 4.36 4.37 4.37 

(Bins and Gear) 42.11 


0.00 0.00 0.00 0.00 0.00 


Roads, Traffic and Transportation 296.12 0.00 45.00 187.45 35.92 27.75 



TOTAL CAPEX 1744.74 310.74 169.57 574.02 351.79 338.62 

P 

I 

III 

Final 

Report 

15-16 

TNUIFSL


T 

N 

Table 15-L Second Phase Capital Investment Plan for Sathyamangalam Municipality (after considering escalation cost) 

Rs. in Lakhs 

U 

D 

Total 


2013-14 2014-15 2015-16 2016-17 2017-18 

Investment 

Water Supply 264.76 72.45 44.62 46.85 49.19 51.65 

UGD 0 0.00 0.00 0.00 0.00 0.00 

Sanitation 74.04 13.40 14.07 14.77 15.51 16.29 

P 


33.04 6.13 6.44 6.78 7.12 

59.51 

I 

0.00 0.00 0.00 0.00 0.00 

0 


(Bins and Gear) 


without bins and gear 

0.00 63.32 276.95 55.72 45.20 

III 

Roads, Traffic and Transportation 441.19 



TOTAL CAPEX 2600.42 416.42 238.59 848.09 545.74 551.58 

Final 

Report 

15-17 

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15.2.3 Third Phase Investment Plan (2018-19 to 2022 – 23) 

N 

Third Phase investment plan for Sathyamangalam is given in Table 15-M. The total Estimated Cost for all the Sectors is Rs. 565.08 

lakhs. The total estimated cost after considering escalation for III phase is Rs. 1041.33 lakhs which is shown in Table 15-N. 

U 

Table 15-M Third Phase Capital Investment Plan for Sathyamangalam Municipality 

Rs. in Lakhs 

D 

Total 


2018-19 2019-20 2020-21 2021-22 2022-23 

Investment 

Water Supply 12.80 12.80 0.00 0.00 0.00 0.00 

UGD 0.00 0.00 0.00 0.00 0.00 0.00 

Sanitation 0.00 0.00 0.00 0.00 0.00 0.00 


P 

I 

24.92 4.63 4.63 4.64 4.65 


(with bins and gear) 43.47 



III 

0.00 0.00 0.00 0.00 0.00 

17.10 187.45 47.45 39.28 17.10 

308.38 




TOTAL CAPEX 565.08 125.63 222.88 85.02 76.86 54.69 

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Table 15-N Third Phase Capital Investment Plan for Sathyamangalam Municipality (after considering escalation cost) 

N 

Rs. in Lakhs 

U 

D 

P 

Total 


2018-19 2019-20 2020-21 2021-22 2022-23 

Investment 

Water Supply 21.89 21.89 0.00 0.00 0.00 0.00 

UGD 0.00 0.00 0.00 0.00 0.00 0.00 

Sanitation 0.00 0.00 0.00 0.00 0.00 0.00 


Solid Waste Management 78.53 42.62 8.31 8.74 9.19 9.67 

0.00 0.00 0.00 0.00 0.00 



I 

29.25 336.63 89.47 77.77 35.55 

568.67 


III 



TOTAL CAPEX 1041.33 214.86 400.27 160.32 152.18 113.70 

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ANALYSIS 

16 

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CHAPTER 16 : RISK ANALYSIS OF IDENTIFIED NEW PROJECTS FOR SATHYAMANGALAM 

CHAPTER 16 : RISK ANALYSIS OF IDENTIFIED NEW PROJECTS 


Project list 

Water Supply 

Land 

Acquisition 

(LA) / 

Availability 

Manpower 

availability 

(Skilled) 

OHT near Indira Nagar (1 lakh capacity) 

by 2017-18 Available Available 

Replacing distribution network 5 Km 4 

inch PVC NA Available 

Replacing 8 inch CI pipe to 8 inch PSC 

pipe for 1.5 KM NA Available 

Laying 2 Km 12 inch PSC pumping 

main line in the proposed bye-pass road NA Available 

Erection of bore well with mini power 

pump NA Available 

Digging of open well at head works NA Available 

Replacement of old motors and pump 

sets NA Available 

Laying new distribution network for 21.1 

Km by 2016 and 2.13 Km by 2022 NA Available 

Digging of Bore Well at Kombupallam ( 

5 Nos) Available Available 

Environmental 

clearance 

Financial 

availability 

with the local 

body 

R & R risk 

ULBs ability to 

fund any cost 

overrun 

Not 

required Constraint NA Minimal 

Not 


Not 


Not 


Not 


Not 


Not 


Not 


Not 


Political 

stability 

Natural 

barriers 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Time delay 

Financial 

Constraint to 

meet O & M 

Costs 

Multiplicity of 

organisation 

in project plng 

and execution 

Public 

Litigation 

Depends on 

fund 

availability 

Depends on 

fund 

Yes No No 

availability 

Depends on 

fund 

Yes No No 

availability 

Depends on 

fund 

Yes No No 

availability 

Depends on 

fund 

Yes No No 

availability 

Depends on 

fund 

Yes No No 

availability 

Depends on 

fund 

Yes No No 

availability 

Depends on 

fund 

Yes No No 

availability 

Depends on 

fund 

Yes No No 

availability Yes No No

Project list 



Land 

Acquisition 

(LA) / 

Availability 

Manpower 

availability 

(Skilled) 

Environmental 

clearance 

Financial 

availability 


body 

R & R risk 


fund any cost 

overrun 

Dependent on 

Severe 

very much 

UGSS for Sathyamangalam 

Provision of Public Conviniences (2 

LA required TWAD Required Constraint NA minimal 

Nos) - W.No : 19 Mariamman koil street, 

Not 

W.No : 26 thaelkaradu street, 

Creating new toilet blocks in Anna 

nagar, Kasi kadu, Puduvalavu, Andavar 

Nagar, Kulankaradu, Mondikardu, 

Kambathrayaputhur and Thoopur 

Available Available required Constraint NA Minimal 

colony (I more), in Ward no 21 and in 

Not 

Pillaiyar koil street Available Available required Constraint NA Minimal 


Provision of SWDs for 9.16 Km NA Available 

Replacing 80% of the existing SWDs 

(67 Km) NA Available 

Creating new closed drains for 9.25 Km 

by 2017-18 and 5.5 km by 2022-23 NA Available 

Pyannan Kuttai Channel ( Desilting and 

Lining- 2 Kms) from Kulathur Road 

Junction to River Bhavani 10 Meter 

wide NA Available 

Not 


Not 


Not 


Not 


Political 

stability 

Natural 

barriers 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Time delay 

Financial 

Constraint to 

meet O & M 

Costs 


organisation 


and execution 

Public 

Litigation 

Depends on 

fund 

availability, 

approval and 

sanction 

Depends on 

fund 

Yes Yes (TWAD) Possible 

availability Yes No No 

Depends on 

fund 

availability Yes No No 

depends on 

UGD 

implementatio 

n 

Depends on 

fund 

availability and 

Yes No No 

approval 

Depends on 

fund 


Yes No No 

approval Yes No No 

Depends on 

fund 


approval Yes No No

Project list 



Land 

Acquisition 

(LA) / 

Availability 

Manpower 

availability 

(Skilled) 

Purchasing Dumper placer vehicle (2 

Nos) NA NA 

Purchasing 12 Dumper placer bins NA NA 

Protective gear for Conservancy worker 

once in two years 

Procuring Separate bins for Waste 

Segregation at source for each 

household (with private sponsorship) 

NA NA 

NA NA 

Improving exisiting compost yard in 

Attany Road NA NA 

Roads 

Creating new roads for 4.3 Km by 2012- 

13, 3.7 Km by 2017-18 and 4.3 Km by 

2022-23 

LA may be 

required Available 

Converting 4.5 Km earthen roads into 

Bitumen road NA Available 

Relaying new roads after 3 years of its 

implementation (4.3 + 3.7and 4.5 Km) 

NA Available 

Environmental 

clearance 

Financial 

availability 


body 

R & R risk 


fund any cost 

overrun 

Not 


Not 


Not 

required 

Not 

required 

Not 

required 

Not a 

Constraint NA Minimal 

Not a 

Constraint 

Not a 

NA Minimal 

Constraint NA Minimal 

Not 

required Constraint Possible Minimal 

Not 


Not 


Political 

stability 

Natural 

barriers 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Time delay 

Financial 

Constraint to 

meet O & M 

Costs 


organisation 


and execution 

Public 

Litigation 

Depends on 

fund 


approval 

Depends on 

fund 


Yes No No 

approval 

Depends on 

fund 


Yes No No 

approval 

Depends on 

fund 


NA No No 

Depends approval on 

fund 

NA No No 

availability and NA No No 

Currently 

Depends on 

fund 


stable Possible approval Yes No Possible 

Currently 

stable NA 

Currently 

stable NA 

Depends on 

fund 


approval 

Depends on 

fund 


Yes No No 

approval Yes No No

Project list 

Relaying 47.18 Km BT roads after UGD 

Implementation (Relaying cost for I 

phase is included in UGSS) 

Relaying 11.781 Km CC roads after 

UGD Implementation (Relaying cost for I 

phase is included in UGSS) 


Land 

Acquisition 

(LA) / 

Availability 

Manpower 

availability 

(Skilled) 

NA Available 

NA Available 

Improvement Kolathur and Puliam 

Kombai Road NA Available 

Traffic and Transportation 

Rotary intersection in Mettupalayam 

junction Not required NA 

Traffic Island provision in Attany road 

Junction Not required NA 

Junction Improvement in Manikoondu 

road Junction Not required NA 

Environmental 

clearance 

Financial 

availability 


body 

R & R risk 


fund any cost 

overrun 

Not 


Not 


Not 


Not 

required 

Not 

required 

Not 

required 

NA ( IMP 

agency - 

Highway) NA NA 

NA ( IMP 

agency - 


NA ( IMP 

agency - 


Political 

stability 

Natural 

barriers 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Time delay 

Depends on 

fund 


Financial 

Constraint to 

meet O & M 

Costs 


organisation 


and execution 

Public 

Litigation 

approval 

Depends on 

fund 


Yes No No 

approval 

Depends on 

fund 

Yes No No 

availability and Yes No No 

Depends on 

Highway's 

approach to 

the project 

Depends on 

Highway's 

approach to 

NA No No 

the project 

Depends on 

Highway's 

approach to 

NA No No 

the project NA No No

Project list 


Land 

Acquisition 

(LA) / 

Availability 

Manpower 

availability 

(Skilled) 

Traffic island provision in Tippusultan 

Mysore trunk road junction Not required NA 

Junction Improvement near Bus stand 

Petrol pump junction IMP Not required NA 

Providing Infrastructural facilities to the 

existing Bus stand Not required Available 

Laying bye-pass road - 100 feet road of 

5.8 km length Not required NA 

Improving Kolathur and Puliamkombai 

road Not required NA 

Widening existing bus stand 

Land 

available Available 

Environmental 

clearance 

Not 

required 

Not 

required 

Financial 

availability 


body 

R & R risk 


fund any cost 

overrun 

NA ( IMP 

agency - 


NA ( IMP 

agency - 


Not 


Not 

required 

Not 

required 

NA ( IMP 

agency - 


NA ( IMP 

agency - 


Not 


Construction of truck terminal Required NA Possible NA Possible NA 


Installing energy saving streelights 873 

by 2012-13 124 by 2017-18 and 142 by 

2022-23 NA 

Sector - Socio-Economic 


Involving 

private agency 

Improvements to the existing Municipal 

High school NA Available 

Not 

required NA NA NA 

Not 


Political 

stability 

Natural 

barriers 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable 

Currently 

stable NA 

Currently 

stable NA 

Time delay 

Depends on 

Highway's 

approach to 

Financial 

Constraint to 

meet O & M 

Costs 


organisation 


and execution 

Public 

Litigation 

the project 

Depends on 

Highway's 

approach to 

NA No No 

the project 

Depends on 

fund 

NA No No 

availability 

Depends on 

Highway's 

approach to 

Yes No No 

the project 

Depends on 

Highway's 

approach to 

NA No No 

the project 

Depends on 

fund 


NA No No 

approval 

depends on 

approaching 

depends the project by 

Yes No No 

on land the Imp. 

selection agency NA Possible Possible 

Depends on 

council 

approval Yes Yes No 

Depends on 

council 

approval and 

fund 

availability Yes No No

Project list 


Land 

Acquisition 

(LA) / 

Availability 

Manpower 

availability 

(Skilled) 

Parks and playfield development Not required Available 

Developing 11 approved layouts into 

parks and playfields Not required Available 

Developing vegetable market area Not required Available 

IHSDP Possible Available 

Renovating Rangasamudram Burial 

ground Not required Available 

Creating Gassifier in the III phase 

Creating New Modern Slaughter House LA required Available 

Constructing office space and Shops in 

Old Chatiram land Not required Available 

Renovating Community hall (dining hall 

in first floor, Bride and groom room with 

attached toilet, compound wall with CC 

pavement in the setback areas) Not required Available 

Creating 150 Sq.m space by 

demolishing Chairman's block 

Concrete roofing for Computer Hall Not required Available 

NA - Not applicable 

Environmental 

clearance 

Financial 

availability 


body 

R & R risk 


fund any cost 

overrun 

Not 


Not 


Not 


Not 

required Constraint Possible Minimal 

Not 


Can 

establish in 

existing 

Burial ground Constraint Constraint NA Minimal 

Not 


Not 


Not 


Not 


Political 

stability 

Natural 

barriers 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Currently 

stable NA 

Time delay 

Depends on 

council 

approval and 

fund 

availability 

Depends on 

council 

approval and 

fund 

Financial 

Constraint to 

meet O & M 

Costs 


organisation 


and execution 

Public 

Litigation 

Involving 

private 

agency for O 

& M No No 

Involving 

private 

agency for O 

& M No No 

availability 

Depends on 

council 

approval and 

fund 

availability 

Depends on 

govt approval 

Yes No No 

and sanction 

Depends on 

fund 


council 

NA yes Possible 

approval 

Depends on 

fund 


council 

Yes No No 

approval 

Depends on 

fund 


council 

Yes Possible No 

approval 

Depends on 

fund 


council 

Yes No No 

approval 

Depends on 

fund 


council 

Yes No No 

approval 

Depends on 

fund 


Yes No No 

council Yes No No

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17 ASSET ASSET MANAGEMENT MANAGEMENT MANAGEMENT PLA PLAN PLA 

Asset Management Plan involves maintenance management for preventive and predictive 

maintenance, equipment recording and tracking, replacement parts inventory, and 

maintenance labor scheduling. The goal of asset management is to optimize asset use and 

manage all maintenance efforts involved in making assets as reliable, accurate, and 

efficient as possible. Asset management Plan is the plan developed for one or more 

physical assets within the municipality that combines multi disciplinary management 

techniques including technical and financial over the life cycle of the asset to a specified 

level of service in a most cost effective manner. 

The key aspects of asset management plan therefore involve asset inventory, information 

of assets owned by the municipality and appropriate strategy to manage the assets and 

increase the productivity of the same. The asset management plan is therefore critical for 

maintaining, upgrading and operating physical assets in a cost effective manner. 

Sathyamangalam municipality has several assets that require regular maintenance for 

sustenance of reasonable service delivery levels. Given the high impact of the O&M 

expenses on the finances of the municipality, it is prudent to undertake a proper review of 

the assets under its control. This would aid in identifying the revenue generating assets as 

well as the ones that are causing a drain on municipal revenues. A comprehensive asset 

management plan aids in achieving the same. 

17.1 List of Assets: 

The assets of Sathyamangalam municipality can be classified as assets relating to basic 

physical infrastructure such as water supply, roads, storm water drains, street lights, light 

and heavy vehicles etc and those relating to social infrastructure which include shops, 

markets, parks, bus stand commercial complexes, slaughter house, maternity centers, 

burial grounds etc. Among basic physical infrastructure only water supply services can 

be considered revenue generating as the municipality is able to collect taxes, connection 

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charges, initial deposit charges and metering/tap rate charges and hence expenses are met 

mainly through dedicated water supply fund set up for the purpose. With regard to social 

infrastructure, only markets, commercial complexes and shops, bus stand, toilets (pay and 

use) etc are revenue generating and hence can be considered remunerative and others 

such as burial grounds, community hall, slaughter house, parks, public toilets, maternity 

centre etc; are not revenue generating or revenue generation is extremely nominal and 

may not be self sustaining. Some of the social infrastructure is required to be provided by 

the municipality as the functions remain obligatory functions of the municipality and also 

help to fund the non remunerative activities of the municipality. These are also required 

to maintain the cleanliness and sanitation of the city. 

The various physical and social infrastructure of the municipality are listed below: 

Table 17-A: Details of various social & physical infrastructure assets 

Particulars Unit Details 

REMUNERATIVE ASSETS – SOCIAL INFRASTRUCTURE 

Bus Stand 1 Rangasamudram @ 2 acres 

Commercial 

Complexes 

Markets- 

Within Local Body 

Limits-Daily 

Markets- 

Within Local Body 

Limits-Weekly 

4 

1 

Sathram Complex, Mysore Trunk Road, Sathy-1 } 150.65 

Sq meter , Inside Weekly Market, Athani Road } 578.90 

Sq meter, Old Bus Stand } 483.80 Sq meter, New Bus 

Stand } 678.51 Sq meter 

Built up area @ 578.90 Sq meter with an annual income 

of Rs.750200 in Athani Road 

1 1 No. in Athani Road With an annual income Rs. 179500 

Pay and Use Latrines 1 New Bus Stand @ 33.12 sq meter 

Slaughterhouse 1 

In Mysore Trunk Road in Thiruvallur Thidal @ 59.96 Sq 

meter 

Community Hall 1 Near Municipality Office @ 172 Sq meter 

NON REMUNERATIVE ASSETS - SOCIAL INFRASTRUCTURE 

School Buildings 3 

Municipality Office 

Buildings 

1 

Mysore Trunk Road opposite to police station - 1 No @ 

938.89 Sq meter, Rangasamudram- 1 No. @ 678.40 Sq 

meter, Kolathur - 1 No @ 304.06 Sq meter 

Built up area @ 367.07 Sq meter and Total Area 3550 Sq 

meter

Maternity Centres 1 

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in Sathya Theatre in W No. 12 @ 122.73 sq meter of 

Built up area and 1073.50 Sq meter of total area 

Noon Meal Centres 6 

Kolathur- 1 No. @ approx 70 sq meter, Near Weekly 

Market Athani Road- 78.65 Sq meter, Nirmala Theatre 

Road- Approx 70 Sq meter, Thiruvallur Thidal- 79.95 Sq 

meter, RMP Nagar- Approx 70 Sq meter, 

Rangasamudram- 61.12 Sq meter 

Radio Rooms 1 367.50 sq meter 

Parks & Play 

Grounds 

Anganvadi 5 

Burial Ground 2 

Proposed Parks 9 

PHYSICAL INFRASTRUCTURE ASSETS 

Water supply 

Overhead Tank 3 

Head works 2 

Pumping Main/ 

Distribution lines 

Others 

Storm water drains Km 

Roads Km 

4 

Bharathi Nagar- 1 No. @ 1255 Sq meter, Teachers 

Nagar- 1No. @ 2170.72 Sq meter, Britto Colony- 1 No. 

@ 1356.30 Sq meter, Nirmala Theatre- 2Nos @ 231.25 

Sq meter and 1157 sq meter 

Dhanavasi- Approx 80 Sq meter, Kompallam - Approx 

80 sq meter, Pulliankombai- Approx 80 Sq meter, 

Govindaraja puram- Approx 80 Sq meter, Inside 

Maternity Premises- 85.56 Sq meter 

Rangasamudram- Extent @ 8350 Sq meter, 

Kottuveerampalayam - with Extent of 13372 Sq meter 

Sivsami Plot- 651 cm, Rajeev Nagar Plot- 57080 Sq.feet, 

K.M Kannappan Plot- 766.43 cm ,Ottukuttai Road Plot- 

2156 cm, Lakshmi Nagar Plot-1157cm, Senteshwari 

Amman Nagar Plot-13312 Sq feet, Vijayakumar Plot- 

5550 Sq feet, Suseel carton Plot- 10404.5 Sq feet 

Kattaboman Nagar- 1 with 10 Lacs Capacity, 

Rangasamudram- 1 No. @ 7.5 Lacs Capacity, Thiruvallur 

Thidal - 1 No. @ 15 Lacs Capacity 

Kombupallam 

Rangasamudram 

2 29.4 Km distribution network 

Storm water 

drainage in Km 

Single 

side 

Double 

side 

Total 

Kutcha drains 3.2 5.4 8.6 

Pucca drains - 

open 

21.6 53.56 75.2 

Total 24.8 58.96 83.8 

Bitumen - 47.18 Km 

Cement Concrete - 11.781 Km 

Earthen road - 4.502 Km 

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Street Lights 1389 


Compost Yard 

Vehicles 3 

Others 

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6.75 

acres 



Attany road dumping site 

Tractor trailer 1 

Tipper 2 

17.2 Operations and Maintenance 

The revenue generation and the operations and maintenance activities currently being 

followed and suggestions for comprehensive Asset Management including ways and 

means to meet the expenses involved & make it a self sustaining for various assets are 

listed below:- 

17.2.1 O&M of social infrastructure assets 

Asset 

Daily Market 

Table 17-B: O&M and Revenue generation 

Average 

Annual 

income 

Rs. 6.17 

Lakhs 

Current O&M 

practice 

Adhoc basis. 

Recommendations 

-Periodic inspection and 

maintenance is required 

- About 2-3 % of the income 

earned from this asset can be 

invested annually on 

maintaining and upgrading 

the facilities. 

-Private party to whom the 

Area/facilities are leased can 

meet the expenses related to 

the maintenance of the asset 

partially.

Weekly Market 

Shops/Commercial 

Complex 

Slaughter House 

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Rs. 1.86 

Lakhs 

Rs.23.00 

Lakhs 

Rs. 0.15 

Lakhs 

Community Hall NIL 

Parks & 

Playgrounds 

Nil 


-Municipality to clear 

unauthorized encroachments 

to use additional space for 

revenue generation 

-Additional Income 

generating activities such as 

pay & use toilets and parking 

lots can be explored 

Ad hoc basis same as above 

Ad hoc basis same as above 

Ad hoc basis 

No proper facilities 

are there at present 

to make it 

remunerative 

As per OWG discussions, No 

renovation is required 

currently. In future the same 

can be funded under Part-II 

Schemes 

- Need to include additional 

facilities such as dining 

room, parking lot, additional 

rooms to make it 

remunerative. (OWG 

Discussions) 

- About 3-5% of the income 

earned from the hall can be 

used to maintain and improve 

the asset. 

Can be maintained jointly 

with private sector 

(companies/clubs/residential 

associations etc) or 

maintained exclusively by the 

private sector on sponsorship 

basis 

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Bus Stand 11.06 Ad Hoc basis 

Public Toilets/Pay 

& Use 

Burial Ground NIL 

School Building NIL 

Maternity Centre 

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NIL 


No pay and use 

except one near bus 

stand 

Ad hoc basis 

Currently 

Improvement at 

Kottuveerampalaya 

for Rs.10 Lakhs 

under Part-II 

Scheme 

Construction of 

class room at 

municipal middle 

school for Rs.6.50 

lakhs funded by 

government grant 

Construction of 

additional building 

for Rs.5 Lakhs 

(Part-II Scheme) 

-Periodic annual 

maintenance is required 

-Additional Income 

generating activities such as 

pay & use toilets, 

advertisements/hoarding and 

paid parking lots can be 

explored. 

Some of the routine 

maintenance work can be 

handed over to SHGs with 

only major maintenance/new 

work to be taken up by the 

ULB 

Periodic annual maintenance 

can sustain the quality of the 

asset 

Gassifier funded through 

government schemes can 

reduce the burden of 

maintaining existing burial 

grounds 

O & M can be met through 

funds from elementary 

education fund 

Source: Analysis based on Information provided by Sathyamangalam Municipality

17.2.2 O&M Physical Infrastructure 

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Operation and Maintenance of the assets related to Physical and socio-economic 

infrastructure is divided under two heads; 

• To maintain the existing assets for the next five years and 

• To maintain the assets proposed to be created under various capital works proposed. 

Since the O & M of the existing assets related to Socio- Economic Infrastructure has 

already been assessed in the above sections of this chapter, the O & M of the existing 

physical Infrastructure assets and the proposed O & M for the capital works identified is 

broadly discussed in this section. Key growth rates assumed for forecasting O & M of the 

existing assets and of the capital works proposed are tabulated below: 

Table 17-C Key assumptions for forecasting O & M for the existing and proposed 

assets 

Description Current level Assumption 

FOR EXISTING ASSETS 

Water Supply 

Operating Expenses -12% Assuming 3% increased rate 

Power Charges for Head 

Water Works 

Maintenance expense for 

Water Supply Works 


Heavy vehicle expenditure 


Maintenance Expense for 

Street Lights 

Power charges for street 

lighting 

FOR CAPITAL WORKS 

8% 

Assuming 5 % growth rate in 

power charges after 

implementing energy saving 

devices suggested by TERI 

10% Assuming 6% increased rate 

5% 

(2002-2003 to 2004-2005) 

22% 

(2002-2003 to 2004-2005) 

1% 

(2002-2003 to 2004-2005) 

Assuming 5 % increased rate 

in heavy vehicle expenses 

Assuming 10 % increased rate 

Assuming 5% increased rate 

after implementing energy 

saving devices 

Water Supply NA 6% of the project cost 

Sewerage & Sanitation NA 4% of the project cost 

Roads and Traffic 

Management 

NA 3% of the project cost 

Storm Water Drainage NA 2% of the project cost 

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Solid Waste Management NA 10% of the project cost 

Street Lighting NA 

5% of the project cost 

considering Energy saving 

mechanism 

Slum up gradation NA 1% of the project cost 

Others NA 2% of the project cost

17.2.2.1 O & M for Existing Physical Infrastructure Assets 

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Based on the aforesaid assumptions, the operation and maintenance expenses for existing physical infrastructure assets have been worked 

out based on the past trends and based on the availability of the data / information available with the Municipality. 

Table 17-D O & M for existing physical Infrastructure assets 

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17.2.2.2 O & M for proposed capital works 

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Based on the aforesaid standards / assumptions, the operation and maintenance expenses for proposed capital works assets for the first 

phase have been worked out and are listed below: 

Table 17-E O & M for proposed capital works


(past 

Sectors - Physical Infrastructure CAGR 

Water supply 

expenses 

2003-03 to 

2006-2007) 

2008-2009 

2009-2010 

2010-2011 

2011-2012 

2012-2013 

2013-2014 

2014-2015 

2015-2016 

2016-2017 

2017-2018 

2018-2019 

Rs.in lakhs 

Operating Expenses -12% 1.96 2.02 2.08 2.14 2.20 2.27 2.34 2.41 2.48 2.55 2.63 2.71 2.79 2.87 2.96 

Power Charges for Head Water 

Works 5% 21.66 22.74 23.88 25.08 26.33 27.65 29.03 30.48 32.00 33.60 35.28 37.05 38.90 40.85 42.89 

Maintenance expense for Water 

Supply Works 10% 2.70 2.87 3.04 3.22 3.41 3.62 3.83 4.06 4.31 4.57 4.84 5.13 5.44 5.77 6.11 


Heavy vehicle expenditure 


Maintenance Expense for Street 

Lights 

Power Charges for Street Lights 

Table 17 D O & M for existing physical Infrastructure assets 

5% 

(2002-2003 to 

2004-2005) 3.56 3.74 3.92 4.12 4.33 4.54 4.77 5.01 5.26 5.52 5.80 6.09 6.39 6.71 7.05 

22% 

(2002-2003 to 

2004-2005) 2.99 3.29 3.62 3.98 4.38 4.82 5.30 5.83 6.41 7.05 7.76 8.54 9.39 10.33 11.36 

1% 

(2002-2003 to 

2004-2005) 12.77 13.41 14.08 14.78 15.52 16.30 17.11 17.97 18.86 19.81 20.80 21.84 22.93 24.08 25.28 

2019-2020 

2020-2021 

2021-2022 

2022-2023

Table 17 E O & M for proposed capital works 

Rs.in lakhs 

Sathyamangalam Investment Requirements 

Project Sector Total Investment 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 

Water Supply 433.95 28.50 76.07 42.73 0.00 0.00 72.45 44.62 46.85 49.19 51.65 21.89 0.00 0.00 0.00 0.00 

UGD 2253.09 714.70 750.44 787.96 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Sanitation 112.11 10.50 27.56 0.00 0.00 0.00 13.40 14.07 14.77 15.51 16.29 0.00 0.00 0.00 0.00 0.00 

Storm Water Drainage 2077.32 0.00 110.25 0.00 0.00 0.00 290.84 103.42 495.69 406.45 426.77 44.14 46.35 48.66 51.10 53.65 


without bins and gear 50.70 0.00 50.70 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 


Transportation 1286.35 0.00 55.13 0.00 78.10 143.26 0.00 63.32 276.95 55.72 45.20 336.63 89.47 89.47 77.77 35.55 

Street Lighting 77.10 18.22 8.66 9.10 9.55 10.03 0.00 0.00 0.00 4.33 4.54 0.00 0.00 4.02 4.22 4.43 


Infrastructure 494.50 255.15 43.00 21.42 30.39 0.00 6.70 7.04 7.39 7.76 0.00 76.97 8.98 9.43 9.90 10.39 

TOTAL CAPEX 7056.07 1085.26 1181.48 865.97 123.05 158.56 416.42 238.59 848.09 545.74 551.58 214.86 400.27 160.32 152.18 113.70 

O & M Cost for New Infrastructure Works 

Sector - Physical 


Total O&M 

2008-09 2009-10 2010-11 2011-12 

O & M Expenses 

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 

Water Supply 309.21 0.00 1.71 6.38 9.32 9.88 10.48 15.45 19.05 23.01 27.34 32.08 35.32 37.44 39.68 42.07 

Sewerage 1354.18 0.00 0.00 0.00 90.12 93.73 97.48 101.38 105.43 109.65 114.04 118.60 123.34 128.27 133.41 138.74 

Sanitation 49.19 0.00 0.42 1.54 1.60 1.66 1.73 2.34 2.99 3.70 4.47 5.30 5.52 5.74 5.97 6.20 

Storm Water Drainage 285.73 0.00 0.00 2.21 2.25 2.29 2.34 8.20 10.44 20.56 29.10 38.22 39.86 41.59 43.39 45.28 


without bins and gear 

124.34 0.00 

0.00 5.07 5.58 6.14 6.75 7.42 8.17 8.98 9.88 10.87 11.96 13.15 14.47 15.91 

Roads and Traffic 

Management 

262.00 0.00 

0.00 1.65 1.70 4.10 8.52 8.77 10.94 19.57 21.83 23.84 34.66 38.38 42.22 45.82 

Street Lighting 49.21 0.00 0.91 1.39 1.91 2.49 3.11 3.27 3.43 3.60 4.00 4.43 4.65 4.88 5.33 5.80 

Socio Economic 


56.21 0.00 

2.55 3.01 3.25 3.59 3.62 3.73 3.83 3.95 4.06 4.10 4.91 5.05 5.20 5.35 

Total O & M expenditure 2490.07 0.00 5.59 21.24 115.74 123.88 134.03 150.56 164.28 193.03 214.72 237.44 260.21 274.50 289.66 305.18

17.3 AMP - Recommendations 

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The following are some of the suggestions with regard to formulation and implementation 

of a comprehensive asset management plan:- 

17.3.1 Asset Register 

A comprehensive Asset register needs to be maintained containing details of the list of assets, 

year and cost of acquisition, particulars such as the location, size of the area/building, 

ownership records and all supporting documents required for the same. These details are 

required for assessing the condition of the asset. The reforms programme under TNUDP has 

initiated the process of computerizing and digitalizing the asset inventory for all municipalities 

in Tamil Nadu. Computerization of asset register is required with focus on proper designing, 

testing, installing a database management system for municipal assets. Data thus compiled 

would need to be classified on the basis of sector specific infrastructure facilities, land and 

properties etc 

17.3.2 Asset Value and Life Cycle Management 

The Municipality needs to determine the value of various assets in regular intervals. As all 

assets have a limited life expectancy, concerted efforts need to be undertaken by the 

municipality on regular basis before investing further in a new asset or up gradation of the 

existing assets. In case of an asset (service) that is handed over to a private contractor for 

O&M, periodic review and inspection needs to be made to prevent misuse and damage to the 

assets. 

17.3.3 Sustainability 

Sustainable management of assets is an important element of asset management plan. 

Sustainable development has been defined as “meeting the needs of present generation 

without compromising the ability of future generations to meet their own needs”. A long term 

financial plan to provide necessary resources to operate, rehabilitate and ultimately replace the 

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asset at the optimal time to achieve lowest life cycle cost is required. Preventive and 

operational maintenance at regular intervals can prevent higher cost associated with the full 

replacement of the asset. Such a plan would ensure that the current users pay a fair share for 

the service they receive so the future users do not have the burden to pay a higher cost for the 

same level of the service. Sustainable management calls for a contribution from the users to 

meet partially or fully the O&M cost associated with the utilization of assets. Hence user 

charges and fees is critical for a sustainable and a successful asset management programme 

17.3.4 Integration of Technical and Financial Plans 

An integrated plan combining technical aspects (to minimize life cycle cost & reduce the risk 

level) and financial aspects (Financial plan) are required to quantify the level of service and 

the cost associated with the same. The technical and financial plans need to be flexible enough 

to suit the changing requirements of the public. 

17.3.5 Condition Assessment Survey (CAS) 

The municipality could look to undertake CAS for various assets owned by the ULB, which 

could bring to light the deficiencies in a system or a component, the extent of defects, 

estimated cost of repairs and the prioritizing the work to be undertaken. This systematic 

review could enhance the life of the asset and minimize huge capital outlay on account of 

delay in taking remedial actions. 

17.3.6 Risk Assessment 

Asset management needs to take into account various risk factors such as financials, 

environmental, regulatory, legal, public health and safety. The risk assessment has be 

elaborated in the Chapter 16 of this report. 

17.3.7 Monitoring and Evaluation 

To optimize an asset management plan, performance of the assets and rehabilitation strategies 

should be monitored regularly, and adjustments made at the appropriate stage in the asset life

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cycle to achieve an acceptable balance between cost and the performance (Level of service). It 

is also imperative to monitor and take damage control measures when the municipality takes 

up any development works to prevent damage to the other assets of the municipality. 

Prioritizing the works to be undertaken can prevent unnecessary maintenance and capital cost. 

17.3.8 Budgeting 

A regular budgeting exercise regarding the possible O&M cost for various assets needs to be 

undertaken by the municipality. There should be a clear link to the financials plans and the 

budgeting exercise undertaken by the municipality. An Asset Management Plan should 

incorporate expenses relating to maintenance, renewal and augmentation of the asset of the 

municipality. 

17.3.9 Training in Database management 

All the above requires proper training to the concerned staff. Training would involve various 

issues such as methods of simplified updation of data, methods of monitoring and follow up 

and training in issues relating to infrastructure facilities management, land use, litigation, 

encroachment etc 

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18 REFORMS REFORMS AND AND RESOURCE 

RESOURCE 

RESOURCE 

MOBILIZATION 

MOBILIZATION 

18.1 Overview 

Urban reforms are the main focus of good governance and service delivery to the 

inhabitants of the urban area. Several initiatives and reforms have been taken up at the 

national level and state level. These reforms need to be replicated and implemented by 

the ULBs completely in a time bound manner. The State Government and the Urban 

Local Bodies have executed a Memorandum of Agreement with the Government of 

India, committing to implement the reform programme. 

Under the Urban Local Bodies level, reforms committed viz., E-Governance, shift to 

Accrual based double entry accounting, property tax (85% coverage), property tax 

collection efficiency (90%). 100% cost recovery for water supply and solid waste 

services have been committed to be achieved in the year 2012. Internal earmarking of 

funds for services to Urban Poor has been done and provision of Basic services to urban 

poor has been committed to be achieved in the year 2012. 

Encouragement of Public Private Partnership to be carried on through outsourcing in 

solid waste management, street light maintenance, pumping station maintenance, STP 

maintenance and hiring of vehicles. Many of the suggested reforms have been 

implemented to some extent though at the ULB level further refinement and qualitative 

implementation needs to be carried out. Besides these mandatory reforms the ULBs have 

initiated Institutional Strengthening, Capacity building for administrative and elected 

representatives under various reform programs of TNUDP and State Government. 

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18.2 Reform measures for Sathyamangalam 


The reform measures to be undertaken by the municipality can be broadly classified into 

3 broad heads: 

Financial and Accounting Reforms 

Institutional reforms 

Reforms in physical infrastructure 

18.2.1 Financial & Accounting reforms 

18.2.1.1 Financial Reforms 

As a part of financial reforms, reforms in tax and non tax collection needs to be taken up 

for improving the financial position of the municipality. The reform process of tax 

collection should be comprehensive and should focus on structural and systematic 

changes so that the increase in efficiency is sustained. This is vital for achieving self- 

sufficiency and improving its financial health to make it possible for the ULB to 

undertake various projects for the welfare of the people. 

The revenue department of Sathyamangalam Municipality is responsible for collection of 

various taxes and charges from its citizens including raising the demand for key revenue 

items like property tax, profession tax, water charges etc., follow up on outstanding 

payment and prepare the Demand Collection Balance (DCB) statement. There is 1 

revenue inspector and 6 revenue assistants for revenue collection and all the posts are 

filled up.

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One of the most important yard stick for measuring the robustness of tax collection is 

collection efficiency. The Collection Efficiency of important revenue sources of 

Sathyamangalam Municipality for the last 3 years is given as under: 

Table 18-A: Collection Efficiency of key revenue sources 

Particulars 2004-05 2005-06 2006-07 

I. PROPERTY TAX 

Arrears 62% 56% 27% 

Current 86% 86% 84% 

Total 80% 79% 72% 

II. PROFESSIONAL TAX 

Arrears 100% 100% Nil 

Current 91% 100% 100% 

Total 91% 100% 100% 

III. WATER CHARGES 

Arrears NA NA NA 

Current NA NA NA 

Total 96% 89% 90% 

Source: DCB of Sathyamangalam Municipality 

Particulars 

Property taxes 

(2006-07) 

Table 18-B: Efficiency parameters of key taxes and water charges 

Current 

Collection 

efficiency 

Arrears 

Collection 

efficiency 

CAGR in no of 

assessments 

(%) Last 5 

years 

CAGR in 

the terms 

of value 

(%) 

84% 27% 2% 3% 

Profession Taxes 100% 100% 2% 13% 


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18.2.1.1.1 Property taxes: 

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Property taxes are one of the important sources of revenue for Sathyamangalam 

Municipality accounting for more than 70% of the tax income of the municipality. The 

current and arrear collection efficiency of property taxes stands at 84% and 27% 

respectively as on 31.03.2007. Though the current collection efficiency appears 

satisfactory at over 80%, the CAGR of no of assessments (2%) and in value terms (3%) 

reveals in stagnancy in identifying under assessed and unassessed properties. This needs 

to be addressed on priority basis. Hence there is an urgent to need to identify more 

assessments and also further revise property taxes to generate sufficient revenue to fund 

its development programs. 

Robust growth in Taxes is required to meet the fund the projects. Proper implementation 

of reforms is a pre-requisite for healthy revenue generation. In the light of the revision in 

property taxes announced by the State government and based on our discussions with the 

municipality, a 25% growth in property taxes has been envisaged every 5 year period 

starting from 2008-09. Healthy growth in number of assessments, updated tax demand, 

periodic revisions and high collection efficiency is important for strong growth in 

property tax collection 

Some of the possible means of enhancing the property tax collection are given below: 

Table 18-C: Reforms in property Taxes 

Suggested Property taxes Reforms 

Mandatory Implementation of Revision of Property Tax once in every five years is 

required. 

Digitization of the property maps through GIS to identify un -assessed and under assessed 

properties is required. GIS based mapping system is advisable for each property identified 

on GIS (Whether it is residential, commercial or industrial).The above database can be 

crossed checked with the data from various governmental authorities/sources such as 

Income Tax, Profession Tax, and Electricity Bills etc. Such database also would help the 

ULB to verify the utility of the property against the purpose for which permission was 

taken. A cost benefit study should be conducted to evaluate the possibility of the

introduction of remote sensing/GIS. 

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Suggested Property taxes Reforms 

Computerization of records of encroached properties, action taken, list of encroachers 

through MIS would enable linking the same with GIS. 

Making the payment of property tax more convenient for the assessee through the use of 

various alternative modes can be explored: 

o Through banks 

o Through online payment 

o Through ECS/ EFT 

Using special schemes and incentives to encourage people to make the payment of 

property tax before the lapse of the due date can be considered. Rebates can be offered for 

advance payment of property taxes 

Collection of arrears through innovative means such as community participation and fast 

track litigation methods need to be attempted. Law enforcement powers should be given to 

the municipality to compel payment of taxes and other charges levied by them. 

Improve enforcement against defaulters by modifying byelaws with adequate recourse to 

ULB within the current framework for enforcing disconnections on defaulters. 

PSP involvement in computerization, billing, collections and survey of properties can be 

explored. 

Rewarding collection efforts of the employees to encourage more aggressive collection. 

List of consistent major defaulters can be published in the notice board of the municipality 

office. This can be resorted in the case of extreme default. 

Suitable legislation at state level to ensure that in the case of disputed property tax the 

assessee should first pay the tax under protest and then can take the necessary legal 

recourse as done in customs/excise duties can be considered. 

Currently the payment of property taxes is possible only in the municipality office. 

Considering the large size of the municipality the possibility of introducing additional 

collection centers to enable the citizens to pay the taxes can be looked into. 

Late payment of property tax after the grace period can be penalized with nominal charges 

as being done in the case of insurance payments etc 

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18.2.1.2 Accounting reforms 

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The administrative section is responsible for maintenance of all income and expenditure 

statements, payment, preparation and implementation of budget. The system of 

accounting has undergone a transformation from cash based accounting system to accrual 

accounting system in line with the State government’s reforms initiative. The following 

reform measures are suggested: 

Table 18-D: Accounting Reforms 

Suggested Accounting Reforms 

As on date Sathyamangalam municipality has audited accounts only upto FY 2005-06. Therefore there 

is an urgent need for the ULB to update it accounts to the latest year to provide a complete, updated 

details on the financial health of the ULB. Hence accounts needs to be finalized within the year itself 

instead of couple of years later as seen currently. This would enable the ULB to identify the revenue 

gaps, financial commitments and costs of various services and take remedial measures to regain its 

financial health. 

Zero based budgeting would need to be carried out for continual monitoring of budgets and cash flow 

management. 

As a part of a larger accounting reform process at the State level, it is suggested that the ULB can 

include disclosures in its Annual Accounts and other published documents details on cost recovery of 

essential services through direct “user charges”, indirect “taxes” and Environmental status report. This 

information can be made available to the public through various channels (Such as hosted the details 

on the website, distribution of pamphlets, Involving SHGs/NGOs/Woman Groups for spreading 

awareness, Public announcements etc) in simple effective language to facilitate substantial/full 

recovery of O&M costs of the various essential services such as Water Supply, Solid Waste 

Management, etc. The awareness creation at various levels will increase the “willingness to pay” 

actions of the citizens of the area. 

The audited annual accounts can contain ULB Discussion and Analysis Report (UDAR) providing a 

holistic view on the financial health, quality of service level rendered, initiatives taken/proposed by the 

ULB to improve the city, areas of concern, targets and action plan to achieve the same etc. This report 

along with the Urban Performance indicators can provide a qualitative edge to the accounting and 

financial reporting system that can go a long way towards achieving high levels transparency, 

accountability and easy and smoother facilitation of the reform process required. Thus the support 

from the stake holders of the city would become easier if the awareness is created with these 

qualitative reports being prepared and shared with the key stake holders of the city.

18.2.2 Institutional Reforms 

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The Institutional reforms suggested for Sathyamangalam municipality can be broadly 

divided into the following heads: 

Training and Capacity Building for administrative staff and elected officials 

Private Sector Participation 

User charges 

MIS and E Governance 

18.2.2.1 Training and Capacity Building for administrative staff 

and elected officials 

Both the elected and administrative member has undergone periodic training under the 

TNUDP and other programs of the state government. For the administrative staff training 

has been given at various levels in the areas of Technical issues, Accounts, Human 

Resources, Computer etc. 

The various training undergone by the staff of Sathyamangalam Municipality has been 

elaborated as under: 

HRD training imparted to Commissioner, Chairman, and Vice chairman under TNUDP 

III Programme in Kodaikanal and Yercaud & General Training conducted by Tamil Nadu 

Institute of Urban Studies, Coimbatore 

Computer training was imparted to all categories of staff under TNUDPIII. 

Accounts Training was imparted to all staffs in the municipality under TNUDP III 

Programme 

Other Training: Workshops for Modern Slaughter house, ABC Programme 1 day in 

Madurai, SWM 1 day in Coimbatore 

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• Public Grievance Redressal Mechanism 

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Grievances from the public are received from various sources such as 

the CM Cell, Collectorate, Elected Councilors and direct complaints 

in the complaint register. 

The municipality maintains two complaints registers one for 

streetlights and another for water supply and one more for general 

section. The Over seer in the engineering department is in charge for 

redressing the same within 48 hours 

The redressal response time has been fixed for various grievances 

It is recommended that the periodicity of the training can be enhanced coupled with more 

qualitative in-depth focus on the type of training offered. This would result in increased 

awareness among the administrative staff on various issues there by enhancing their 

productivity and creating awareness about their responsibility towards the public. For 

both elected and administrative members educational and awareness tours can be 

organized to understand the best practices in various services of other ULBs. 

18.2.2.2 Private Sector Participation 

Government of Tamil Nadu (GoTN) has laid down a policy clearance order for the ULBs 

in the State, indicating the areas of privatization in the sectors of Solid Waste 

Management, Water Supply, Sewerage, Drain Cleaning, Public Toilets, Road 

Maintenance, Street Lighting, Parking lots, parks and play grounds, and vehicle 

maintenance. The GoTN states that this list is indicative and local bodies are free to 

investigate other areas of privatization. The local body would be saving the indirect cost 

towards pension, gratuity, etc if privatization efforts are initiated and effective monitoring 

and evaluation on the delivery of services of private contractor is adopted.

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Table 18-E: Current Areas of Privatization/outsourcing 

Sector Currently privatized Street lights (O & M) 

Contract period 01.04.2006 till next 3 years 

Contractor Marudham Electrical, Erode 

Coverage All wards 

Amount paid to the contractor Rs.22,500 per month 

Further privatization 

initiatives for street lights 

At present around 1018 tube lights, 198 sodium 

vapor lights are privatized. Additional Tubelights that 

are going to be privatized are 165-tube light, 150 W 

sodium vapour-7 Nos & 250 W sodium vapors- 30 

Nos. 

Sathyamangalam municipality is one of the 29 

municipalities in Tamil Nadu where energy audit 

study has been initiated for exploring the possibilities 

of using energy saving devices to reduce power costs 

in water supply and street lights A private firm is 

undertaking energy investment grade audit on street 

lighting and water pumping system to assess and 

establish the current data on energy consumption 

output levels, operating conditions in terms of hours 

of usage, system line diagram etc. If found viable, a 

five year ESCO contract between the municipality 

and the private firm would be initiated and revenue 

accrued as a result of reduced power costs would be 

shared between the private firm and the municipality 

on a pre determined ratio. 

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Table 18-F: Possible areas of privatization/outsourcing 

Other areas of privatization 

Privatization of Solid Waste Management may not be an immediate possibility considering 

the current strength of conservancy workers in the payroll of the municipality. 

The ULB can also seek private sponsorship for purchase of household bins for waste 

segregation once awareness is created among the public on the waste segregation 

18.2.2.3 User Charges 

There is a need to introduce in phases “User Charges” for various infrastructure amenities 

provided by the municipality. Cross subsidization of tariff, Innovative product structuring 

and community participation are some of the measures which could be explored to 

provide services for the urban poor. 

Currently only for water supply the ULB is able to generate direct revenue in the form of 

water charges, initial deposit and connection charges and indirectly through water tax 

which is a component of property tax. For other services the ULB depends on its taxes 

and external funds to fund its activities. As these are inadequate the municipality is facing 

continuous deficits even in meeting its obligatory commitments and are unable to initiate 

any major improvement scheme for development of the city. 

In the light of the above limitations, the ULB needs to explore the option of introducing 

user charges in other areas too. For the proposed UGD collection of user charges for 

meeting O & M expenses becomes imperative. Some of the suggested areas are user 

charges from commercial entities and institutions for solid waste management to be 

extended to residential areas in phases after proper awareness is created at all levels. 

However as per our discussions with the OWG, immediate introduction of user charges 

may not be possible. 

To enhance its revenue the municipality would need to increase the deposit charges for 

new connections and can explore the option of increasing the water charges. This backed 

by higher collection efficiency and enhanced service coverage of water connections can

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minimize revenue leakages from water sources. It is recommended that the collection 

efficiency can be enhanced from 71% to over 90% and the service coverage to be 

improved from the current 52.80 % to 85% over a stipulated time period. This could also 

minimize unauthorized/illegal connection. However in the absence of records in these 

aspects, the revenue loss from water supply cannot be quantified accurately. 

18.2.2.4 E-Governance & Computerization 

There is a data entry operator for attending to information and MIS requirements. This 

activity has come under the limelight after a significant computerization activity was 

undertaken under TNUDP programs. The municipality also has an E-mail address and 

any complains or suggestions can be received on this. 

Table 18-G: Online Modules 

Module Category Modules Online 

Birth & Death Yes 

Property Tax Yes 

Non-Tax Yes 

Water Charges Yes 

Building Plan Yes 

F.A.S Yes 

Vehicle Maintenance Yes 

Pay Roll Yes 

Professional Tax Yes 

D&O Yes 

Movable& immovable Yes 

Solid Waste Management Yes 

Grievance Records Yes 


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18.2.3 Reforms in Physical Infrastructure 

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Table 18-H: Reforms in Physical Infrastructure 

Sectors Suggested Reforms 

Water Supply 

Service coverage of water connections to be increased from 

current 52.80% to 85% by 2017-18 

Water supply charges and connection charges need to be revised 

on periodic basis ie once in 5 years to fund its future investments 

in water supply. 

Monthly service charges for the consumers can be increased 

minimum of 25% every 5 years. 

For funding its investments in water supply, the municipality can 

consider alternative payment structures for water. It could offer 

one-time payment options, where the connection fee is bundled 

with usage fees for a number of years. The packages could be 

made attractive by offering suitable levels of discounts. This 

could result in reduction in collection risk and reduced cost of 

billing and collections. The same could be used for other services, 

where the collection requires the effort of the municipal staff. 

To improve the collection levels, the municipality could look at 

providing an incentive and penalty structure for payment of water 

taxes and charges. 

For reducing operating and maintenance costs, water leakage 

audit, installation of leak detection equipment and replacement of 

pipes needs to be done on regular basis. 

Currently there is no record maintained for Unaccounted for 

Water (UFW).UFW is the difference between the volume of 

water delivered into the distribution system and the water 

sold/billed or accounted for by legitimate consumption. There is 

need for maintaining such a record for reducing the possibilities 

of revenue leak through unauthorized/illegal connections. 

Pumps, motors and distribution network which undergo severe 

wear and tear impact power costs of the municipality besides

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Sewerage 

System 

reducing operational efficiency. Hence periodic maintenance of 

the system with regular investments in up gradation and 

replacement of pipelines, motors and pumps needs to be followed 

to avoid huge one time expenditure to the maximum extent 

possible. 

Privatization in routine maintenance relating to water supply 

such as hand pumps can be considered 

Periodic technical training to its engineering cell is required. 

Privatization of maintenance of sewerage system can be 

considered to reduce the establishment charges of municipality 

and O&M Charges. 

Sewer Connection charges to the users can be increased once in 

five years for better revenue generation. 

Monthly service charges for the consumers can be increased 

minimum of 25% every 5 years. 

To improve the collection levels of monthly charges, the 

municipality could look at providing an incentive and penalty 

structure for payment of charges and privatize the collection 

system. 

Pumps, motors in sewage pumping stations undergo severe wear 

and tear and impacts power costs of the municipality besides 

reducing operational efficiency. Hence periodic maintenance of 

the system with regular investments in up gradation and 

replacement of pipelines, motors and pumps needs to be followed 

to avoid huge one time expenditure to the maximum extent 

possible. 

Annual Maintenance Contract for Sewage Pumping Stations and 

Sewage Treatment Plants can be adopted. 

Periodic technical training to its engineering cell is required in 

O&M of Sewage Treatment Plant, Pumping Stations and Sewer 

Networking System. 

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Solid Waste 

Management 

Door to door collection of garbage at household level and 

segregation of waste at source need to be implemented after 

creating suitable awareness level 

Gradual and phased introduction of user charges initially for 

commercial areas later to be extended to residential zones can be 

considered in later years after proper awareness is created among 

various stake holders. 

Private sponsorship of bins for waste segregation at house hold 

level can be looked into 

Vehicles used in SWM and conservancy activities such as tipper 

lorries, tractors; dumper blazer etc can be maintained through 

outsourcing arrangement with reputed contractors. The Annual 

Maintenance Contract should be all comprehensive covering 

various critical clauses in order to protect the municipality from 

possible claims from the Ways to improve the revenue from 

charges that are being collected from different commercial 

establishments like hotels including kiosks, eating houses, 

restaurants, star hotels and retail markets should be studied. 

The municipality can identify the ways to generate revenue from 

Solid Waste by selling compost at market. 

The municipality can auction to the private parties for disposal of 

recyclables. 

Potential for getting carbon credit benefit through the Clean 

Development Mechanism (CDM) need to be studied in making a 

comprehensive solid waste management scheme. 

Privatization of services for the following activities should be 

undertaken to reduce the establishment charges and O&M 

charges of Municipality: 

o Door to door collection of domestic waste 

o Door to door collection of commercial waste, construction 

waste and Market waste. 

o Setting up and operation and maintenance of waste treatment

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Street lights 

Roads 

plants. 

o Supplying vehicles on rent 

o Transportation of waste on contract basis. 

However immediate privatization of SWM activities may not 

possible considering the large number of conservancy workers in 

the municipality’s pay roll. 

Delegation of powers and fixing accountability should be done for 

better management of the system. . 

Human Resources Development 

Special training to unqualified staff 

Refresher courses for all levels of staff about 

advances in the field of SWM 

Exposure to elected members 

Design of SWM course to Public Health staff 

Meeting the norms of one pole per 30 meters by 2012-13 

Energy Audit needs to be conducted periodically. 

Private parties can be involved for financing, operation and 

maintenance of energy efficient street light projects to reduce the 

cost incurred for the same. 

Relaying Bitumen roads once in three years with patch works to 

be undertaken based on the need in between years 

Future roads to be laid with dedicated service lanes. 

Relaying roads with recyclable materials like fly ash, can be 

explored 

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18.3 Additional Resource Mobilization 

As discussed in detail in earlier chapter that the revenue of the municipality is inadequate 

to meet its service obligations and hence faces resource constraint in initiating major 

development works which require sustainable investments. Hence both the traditional and 

non-traditional alternatives for resource mobilization need to be evaluated in light of the 

huge investments required for many projects identified. 

Resource Mobilization efforts need to be directed towards generating additional revenue 

from existing avenues such as property taxes, profession tax, water charges, service 

charges and fees and remunerative assets of the municipality. Besides this the 

municipality would need to take measures to control expenditure in water supply, solid 

waste management, street lighting etc. Additional resource mobilization options such as 

enhancing revenues of remunerative assets, non-tax revenue options such as 

advertisement and parking fees for the municipality are discussed in detail in subsequent 

paragraphs. 

18.3.1 Additional revenue from Remunerative assets 

Table 18-I : Income from Remunerative social assets 

Rs.in Lakhs 

Particulars 

2002- 

2003 

2003- 

2004 

2004- 

2005 

2005- 

2006 

2006- 

2007 

2007- 

08(est.) 

Daily market 7.22 5.78 5.86 6.00 6.65 6.17 

Weekly market 1.63 1.17 1.60 1.81 2.16 1.86 

Slaughter 

House 

0.03 0.04 0.04 0.36 0.04 0.15 

Mutton shops 7.04 8.15 7.11 10.25 10.01 10.00 

Bus stand 

shops 

17.01 17.76 19.29 21.25 22.93 21.16 

Other shops 0.41 0.90 0.90 0.90 0.93 0.91 

Fruit tree lease 0.03 0.03 0.03 0.04 0.04 0.03 

Source: Sathyamangalam Municipality

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As seen from the above table, the municipality earns more than Rs.40 lacs from 

remunerative assets including daily market, bus stand shops, mutton shops etc. The vision 

plan has envisaged improvement of vegetable market at a cost of Rs.71.5 lacs which 

could be implemented on BOT/BOOT basis through PPP. The Old chatiram land which 

is about 1423 Sq. meters can be developed as commercial complex in the ground and 

offices in the Ist floor. Estimated cost of the same is around Rs.25 lacs which could 

generate some income for the municipality. However the feasibility needs to be worked 

out to estimate the revenue earning potential of this land. 

18.3.2 Advertisement & Parking Fees 

Currently no significant Advertisement Fees or parking fees is being collected by the 

municipality. Possibilities of revenue from this source are limited in the absence of major 

industrial activity in this town. 

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19 FINANCIAL FINANCIAL OPERATING OPERATING PLAN 

PLAN 

19.1 Background- need for an FOP 

The Financial Operating Plan (FOP) assesses the financial strength of the municipality to 

implement the identified investments. The Financial Operating Plan (FOP) forecasts the 

municipal finances on the basis of certain assumptions on income and expenditure. The 

primary objective of the FOP is to ascertain the investment sustenance capacity of the 

municipality under different scenarios of revenue enhancement and expenditure control. 

In the FOP four scenarios are envisaged 

Scenarios Details 

Base Case Scenario No New Projects without Reforms 

Full Project Scenario 


Sustainable Project Scenario 

Implementation of all Projects required for 

the next 15 years without Reform 

implementation 

Implementation of all Projects required for 

the next 15 years with Reform 


Implementation of key Projects required for 

the next 15 years with Reform 


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The key reforms are highlighted in Table below. The total reforms suggested have been 

elaborated in Reforms Implementation Schedule (Figure 19-1 

Key reforms 

Particulars Current practice Reform suggested 

Revision in 

Property tax rates 

Service level 

Coverage (Water 

Supply- Number of 

assessments) 

Revision in Initial 

Deposit for New 

Water Connections 

Revision in Water 

Charges 

Revision in Initial 

Deposit for New 

UGD Connections 

Revision in 

Monthly user 

charges for UGD 

User Charges for 

Solid Waste 

Management 

Revision once in 10 years 

53% 

Adhoc revision 

25% increase in every 5 

years 

3% to 4% increase every 

year achieving 85% 

coverage by 2017-18 

Rs.2000 increase every 5 

years for each new 

connection 

Adhoc revision 25% increase every 5 years 

No UGD currently 

Rs.2000 increase every 5 

years for each new 

connection 

No UGD currently 25% increase every 5 years 

Not Charged 

Rs.40 per month from Non- 

Domestic assesses from the 

year 2011-12 and Rs.20 per 

month from Domestic 

assesses from the year 2013- 

14. A 25% increase every 5 

years in the user charges has 

been proposed.

19.2 Financial Sustainability 

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The financial sustainability Analysis is carried out with the basic assumption that the 

municipality will carry out reforms and projects envisaged under various scenarios. The 

Financial Operating plan prepared for Sathyamangalam Municipality evaluates the 

municipality’s financial position based on the three scenarios described below: 

19.2.1 Base Case Scenario 

In the base case scenario, the finances of ULB are forecast for next 15 years without 

taking into consideration any new projects envisaged in Capital Investment Plan. 

Additional resources mobilized through various initiatives such as resource mobilization 

through enhanced revision of property tax rates and no of assessments (based on 

projected population increase), increased revenue realization through faster growth in 

service charges and fees including revision of user charges and connection charges for 

water supply, other income (mainly Lease rental income) etc are loaded to the FOP in the 

base case scenario. Routine revenue expenses including Operations and Maintenance of 

existing assets have also been considered and loaded to the FOP. Revenue surplus thus 

generated indicates ULBs capacity to service the usual capital expenditure in the normal 

course of running its operations. 

19.2.2 Full project Scenario 

Full Project scenario for Sathyamangalam has been worked out based on estimated 

demand supply analysis of various physical and social infrastructure requirements of the 

city and feedback of OWG members on the city’s needs for the next 15 years. The 

financial mix for funding these projects has been based on prudent financial norms and 

existing practices currently being followed today. The projects identified are vital for 

meeting the basic requirements of the town as per the infrastructure standards. 

Furthermore all the projects identified fall under the obligatory functions under the 12 th 

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Schedule. In the event of the town not undertaking the project, the key problems would 

be poor infrastructure resulting in poor service delivery and loss of potential revenue 

from new revenue streams like UGD. To overcome these issues the framework for FOP 

is developed taking into account existing strengths of the town and also reducing the 

inefficiencies in the system. 

Phasing of the identified projects is done based on the possible year of construction, 

demand supply gap analysis and investment priority of the OWG members. Implications 

of the investments worked out in terms of external borrowing required, the resulting debt 

servicing commitments, external support in form of grants and additional operation and 

maintenance expenditure anticipated due to the new projects identified have been worked 

out for the next 15 years. Debt servicing capabilities, gaps in required investments from 

ULB for the said projects vs the actual availability with the municipality for the ULB’s 

contribution for the said projects has been worked out to estimate the extent of ULB’s 

capability to meet its contribution for financing the new projects identified under Capital 

Investment Plan. 

The implications on the investment and borrowing capability of the ULB for all the 

identified projects is worked out under two scenarios 

A) Without suggested reforms 

B) With suggested reforms 

19.2.3 Sustainable Project Scenario 

The sustainable investment scenario is worked out when the full project investment 

scenario indicates inability of the municipality to sustain the full identified investment. In 

this case, the identified investment is sized down to immediate felt need for the 

municipality to sustain on its own with external support and borrowings.

19.3 Assumptions for FOP 

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This FOP is based on a whole range of assumptions related to income and expenditure. 

These are critical to understand the financial projections worked out, sustenance of the 

projected increase in revenue and expenditure under various scenarios and surplus thus 

generated. Assumptions regarding interest rates, repayment terms and conditions, 

financing pattern have also been explained in subsequent paragraphs. Assumptions 

regarding additional Operation and Maintenance Expenses for the new projects identified 

have also been provided. The assumptions would help in understanding the extent of 

investment sustenance for future projects envisaged. 

19.3.1 Revenue Income 

In case of taxes and non tax revenue such as property taxes, water charges and sewerage 

charges where the base and basis of revenue is fairly well known and predictable the 

likely revenue is forecast based on certain assumptions regarding growth in number of 

assessment, revision in average revenue per property (for property taxes), revision in 

charges/Tariffs (water charges and sewerage). Table 19-A, Table 19-B, Table 19-C lists 

out the assumptions with regard to forecasting income from property tax, water charges 

and sewerage charges respectively. Assumptions regarding other sources of revenue 

income have been given in Table 19-D. Tables indicate the assumptions in revenue 

income in base case scenario and investment scenario. 

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19.3.1.1 Property Taxes 

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Table 19-A : Key assumptions for forecasting income from Property Taxes 

Description Current Level Base Case Scenario Investment Scenario 

Annual Growth in Number 

of Assessment 

Periodic Increase in 

Average Revenue per 

property (%) 

Source: Analysis 

19.3.1.2 Water Charges 

2.37% 

(From 2002-03 

till 2007-08) 

Table 19-B: Key assumptions for forecasting income from Water Charges 

Description Current Level Base Case Scenario Investment Scenario 

% OF WATER CONNECTIONS TO PROPERTY TAX ASSESSMENT 

2007-08 52.80% 

2013-14 70% 70% 

2017-18 85% 85% 

INITIAL DEPOSIT FOR NEW WATER SUPPLY CONNECTIONS ( Rs. per connection) 

Domestic (Rs.) 

From 2008-09 till 2012-13 Rs.2000 

From 2013-14 till 2017-18 Rs.4000 Rs.4000 

From 2018-19 till 2022-23 Rs.6000 Rs.6000 

Non-Domestic (Rs.) 

From 2008-09 till 2012-13 Rs.5000 

Projected based on 

the estimated increase 

in population of the 

city + 1% of the 

projected property 

assessment for un- 

assessed Properties 

25% increase in every 

5 years 

Projected based on the 

estimated increase in 

population of the city 

+ 1% of the projected 

property assessment 

for un-assessed 

Properties 

25% increase in every 

5 years

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From 2013-14 till 2017-18 Rs.7000 Rs.7000 

From 2018-19 till 2022-23 Rs.9000 Rs.9000 

WATER CHARGES (per month) 


2008-09 Rs.45 

From 2009-10 till 2012-13 Rs. 60 (25% increase) Rs. 60 (25% increase) 

From 2013-14 till 2017-18 Rs. 75 (25% increase) Rs. 75 (25% increase) 

From 2018-19 till 2022-23 


2008-09 Rs.150 

From 2009-10 till 2012-13 

From 2013-14 till 2017-18 

From 2018-19 till 2022-23 


19.3.1.3 Sewerage Charges 

Rs. 93.75 (25% 

increase) 

Rs.200 (25% 

increase) 

Rs.250 (25% 

increase) 

Rs.312.50 (25% 

increase) 

Table 19-C : Key assumptions for forecasting income from Sewerage Charges 

Description 

Number of UGD Connections 

Ratio of Domestic and Non-Domestic to the 

total UGD Connections (This is based on the 

current % of Domestic and Non-Domestic of the 

total Property tax assessments) 

MONTHLY USER CHARGES 

(Note: Monthly User charges would be collected 

after the UGD Project is completed) 

Current 

Level 

Domestic (Rs./Month.) 

From 2011-12 till 2015-16 Rs.74 

Base Case 

Scenario 

Rs. 93.75 (25% increase) 

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Rs.200 (25% increase) 

I 

Rs.250 (25% increase) 

Rs.312.50 (25% 

increase) 

Investment 

Scenario 

70% of Total 

Number of Property 

tax assessment 

80:20 

From 2016-17 till 2020-21 Rs.93 (25% increase) 

From 2021-22 till 2022-23 

Rs.116 (25% 

increase) 

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Non-Domestic (Rs./Month.) 

From 2011-12 till 2015-16 Rs.175 

From 2016-17 till 2020-21 

From 2021-22 till 2022-23 

DEPOSIT FEE /CONNECTION 


From 2008-09 till 2012-13 Rs.5398 

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Rs.218.75 (25% 

increase) 

Rs.273.45 (25% 

increase) 

From 2013-14 till 2017-18 Rs.7398 

From 2018-19 till 2022-23 Rs.9398 


From 2008-09 till 2012-13 Rs.12959 

From 2013-14 till 2017-18 Rs.14959 

From 2018-19 till 2022-23 Rs.16959 


19.3.1.4 Other sources of Revenue income 

Particulars CAGR-(%) 

Profession 

Tax 

External 

Sources 

(Assigned 

Revenue+ 

Devolution 

Funds+ Grants 

& 

Contribution) 

12.70% 

(2002-03 till 

2006-07) 

Negative 

CAGR of 

19.30% for 

Assigned 

Revenue & 

7.95% for 

Devolution 

Funds (2002- 

Table 19-D : Assumption for Income 

Projected 

growth 

Rates (%) 

8% - 

8% 

Notes 

Since both the Assigned 

Revenue & Devolution Funds 

has shown inconsistent trend in 

the last few years a overall 

CAGR of 8% has been assumed 

taking into consideration the 

buoyancy in state tax revenue, 

population growth trend of the

Service 

Charges & 

fees( 

Excluding 

Water 

Charges) 

Other Income 

User Charges 

for Solid 

Waste 

Management 

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03 till 2006-07) town etc; 

10.20% 5% 

Inconsistent 

trend 

8% 

Includes Bus stand Fee ( 8% 

growth rate assumed on account 

of Bus Stand Improvement) and 

Building license Fees 

2004-05 is taken as the base 

year for projections. This 

includes rental income and 

project overhead appropriation 

expenses. 

Rs.40 per month from Non- 

Domestic assesses from 2011-12 

and Rs.20 per month from 

Domestic assesses from 2013- 

14. A 25% increase every 5 

years in the user charges has 

been envisaged. 

Source: Analysis based on past financials provided by Sathyamangalam Municipality\ 

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19.3.2 Revenue Expenditure 

19.3.2.1 Current Revenue Expenditure 

Personnel Cost & 

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Table 19-E: Assumption for Revenue Expenditure 

Particulars CAGR-(%) 

Retirement Benefits ( Salaries) 

Salaries- 12.74% 

(2002-03 till 

2006-07) 

Retirement Benefits- 

Inconsistent trend 

Projected Growth 

Rates (%) 

Operating Expenses 21.84% 5% 

Repairs & Maintenance 14.92% 5% 

Administrative Expenses Inconsistent Trend 5% 

Source: Analysis based on past financials provided by Sathyamangalam Municipality 

19.3.2.2 Additional O&M Expenditure due to sub-projects 

This has already been covered in Chapter 17: Asset Management Plan: Table 17-E O & 

M for proposed capital works 

19.3.2.3 Future Debt obligations 

Table 19-F: Key assumptions for forecasting future debt obligations 

Sector Tenure Moratorium Rate of Interest (%) 

Water Supply, UGD 20 5 9.00 

Roads, Storm Water Drains 10 2 8.50 

Others 5 NIL 9.00 


5%

19.3.3 Funding Mechanism 

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Table 19-G : Financing Pattern for Proposed projects 

Particulars Loan Grant 

ULB Share/ 

Public 

Contribution 

Notes 

Water Supply 50 30 20 

UGD 21 50 29* *Public Contribution -29% 

Sanitation 50 50 

Storm Water Drainage 60 30 10 

Solid Waste Management 50 50 



60 30 10 


Socio-Economic Infrastructure 

100 

School Building 100 From the Education Fund 

Parks and Playgrounds 50 50 

Daily and Weekly Market PPP 

Slum Improvement- IHSDP 

80 

20** 

Burial Ground Improvement 50 50 

Gassifier 50 50 

Slaughter House 50 50 

Land Development 90 10 

Community Hall 50 50 

Municipal Building 50 50 


** Equal Contribution from 

the ULB and the 

beneficiaries 

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19.4 Outcome of Financial Operating Plan 

19.4.1 Base Case Scenario (“Business as Usual 

Scenario”) 

In the Base Case Scenario, the finances of ULB are forecast for the next 15 years without 

taking into consideration any new projects envisaged in Capital Investment Plan (CIP). The 

past trends in growth rates in revenue income and expenditure are assumed to continue over 

the next 15 years. No new revenue sources such as user charges for UGD, SWM are 

envisaged under this scenario. Revenue surplus thus generated indicates ULB’s capacity to 

service the usual capital expenditure in the normal course of running its operations. Table 

19-H indicates the revenue surplus position of the ULB over the 15 year period. 

The following are the outcome under this scenario:- 

The projected cumulative revenue surplus (Closing Balance) of the ULB shows a 

healthy surplus position over the 15 year period with a revenue surplus touching 

Rs.2047 Lakhs in the year 2022-23 after meeting its debt obligations.


Table 19 H :Financial Operating Plan - No Projects,No REFORMS- Base Case Scenario 

Particulars 2008-09 

2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

Projections Rs. In Lakhs 

Opening Balance (X) 13 58 116 179 249 326 411 505 610 736 875 1075 1292 1528 1785 

Revenue Income 

Property Tax 91 92 93 94 96 97 98 99 100 101 127 129 130 132 133 

Other Tax 12 13 14 15 17 18 19 21 23 24 26 29 31 33 36 

External Sources 137 148 160 172 186 201 217 234 253 273 295 319 344 372 402 

Service Charges and Fees 86 98 101 105 109 113 118 123 128 134 151 158 165 173 162 

Sale & Hire Charges 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 

Other Income 48 52 56 60 65 70 76 82 88 95 103 111 120 130 140 

Revenue Income (A) 373 402 424 447 472 499 528 559 592 628 704 746 791 840 874 

Revenue Expenditure 

Personel Cost I (Salaries) 190 200 210 220 231 243 255 268 281 295 310 325 341 359 376 

Personel Cost II (Others) 4 4 4 4 4 5 5 5 5 6 6 6 6 7 7 

Terminal and retirement benefits 17 18 19 20 21 22 23 24 25 26 28 29 31 32 34 

Operating Expenses 43 45 48 50 53 55 58 61 64 67 70 74 78 82 86 

Repairs & Maintenance 39 41 43 45 47 50 52 55 58 60 63 67 70 74 77 

Programme Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 

Administrative Expenses 16 17 18 18 19 20 21 22 24 25 26 27 29 30 32 

Debt Repayment of existing loans 19 19 19 19 19 19 19 19 9 9 0 0 0 0 0 

Revenue Expenditure(B) 328 344 360 377 395 414 434 454 466 489 504 529 555 583 612 

Revenue Surplus/Deficit (A-B)=C 45 58 63 70 77 85 94 104 126 139 200 217 236 257 262 

Closing Balance (X+C)=D 58 116 179 249 326 411 505 610 736 875 1075 1292 1528 1785 2047 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

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19.4.2 Full Project Scenario WITHOUT Reforms 

Under this NO REFORM Scenario, the FOP for all projects has been worked out as 

under: 

• Funding pattern as per Prudent Financial norms 

• Funding pattern based on the borrowing capacity of the ULB 

The same has been elaborated under Heading 19.4.2.1 and 19.4.2.2 respectively 

19.4.2.1 Full Project Scenario WITHOUT Reforms and Funding 

pattern for the new projects based on prudent financial 

norms 

The Full project investment scenario is based on projects identified for Sathyamanagalam 

Municipality and the investment required for upgrading the town’s infrastructure. The 

projects have been identified based on estimated demand supply analysis of various 

physical and social infrastructure requirements of the city and feedback obtained from 

OWG members on the city’s needs for the next 15 years. The financial mix for funding 

these projects has been based on prudent financial norms and existing practices currently 

being followed. The projects identified are vital for meeting the basic requirements of the 

city as per the infrastructure standards and norms. 

The cash flows from the new projects is given in Table 19-I. The projected Overall 

Closing balance shows adverse financial impact for the ULB in implementing the 

projects without undertaking the reforms suggested. The same has been shown in Table 

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The ULB is able to meet the O&M of new Projects for the next 15 years. 

The ULB faces constraints in meeting the debt repayment commitments as indicated by 

the Debt Service Coverage ratio (DSCR) which is below the prudent financial norms of 

1.25 times. The same has been shown in Table 19 K 

The ULB would not be able to meet its financial contribution to new projects as required 

under prudent financial norms of funding. 

To address the issue of shortfall in its borrowing capacity, the ULB would require 

additional external support as the capacity of the ULB to borrow under this scenario 

would be only around Rs.1.80 Crores as against the loan requirement of Rs. 26.00 Crores 

for full project implementation. The lower ULB contribution and lower borrowing 

capacity of the ULB as a result of non implementation of suggested reforms and the 

resultant higher external support required for full project implementation has been shown 

under heading 19.4.2.2 

19.4.2.2 Full Project Scenario WITHOUT Reforms and with 

additional external support 

The cash flows from the new projects is given in Table 19 L and the financial impact in 

implementing the full projects without reforms but with additional external support is 

given in Table 19 M. 


The ULB is able to meet the O&M of new Projects for the next 15 years 

The ULB would be able to borrow Rs. 1.80 Crs against the requirement of Rs.26.00 

crs 

With the borrowings of Rs.1.80 crs, the ULB would be able to meet its debt 

repayment commitments as indicated by the Debt Service Coverage ratio (DSCR). 

The same has been shown in Table 19 N. This is possible only due to strong external 

support 

External support required would be Rs.58.60 Crs

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The ULB would not be able to meet its share of contribution towards project funding 

of all projects identified 

The table below shows the funding and borrowing capacity of the ULB under “Full 

Project Scenario WITHOUT Reforms” 

Table 19 O: FULL PROJECT SCENARIO WITHOUT REFORMS -Funding requirements as per 

Prudent Funding Norms vs. Funding Possibilities based on borrowing capacity 

Particulars 

Full project 

Scenario- 

Funding based 

on prudent 

financial norms 

(Rs.lakhs) 

Full Project Scenario – 

Funding based on borrowing 

capacity 

(Rs.lakhs) 

Loan Amount 2600.49 180.55 

External Support 3047.38 5860.00 

ULB’s Contribution 867.75 475.08 

Public Contribution 465.37 465.37 

PPP 75.08 75.08 

Project Cost 7056.07 7056.07 

% of loan on Project 

cost 36.85% 

2.56% 

Borrowing Capacity of the ULB is 6.94 % of the loan required for full project 


As seen from the above table, the ULB can contribute only Rs.475.08 Lakhs against the 

requirement of Rs. 867.75 Lakhs if suggested reforms are not implemented. The ULB’s 

capability to borrow is only Rs.180.55 Lakhs against the loan requirement of Rs.2600.49 

Lakhs for full project implementation. Total external support required would be 

Rs.5860.00 Lakhs in order to implement all the identified projects envisaged under CIP. 

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Table No 19 I: Full Project Cash Flow , Full Projects WITHOUT REFORMS - As per Prudent Financial norms 

Rs. In Lakhs 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

Opening Balance (A) -10.93 -35.73 -88.69 -178.68 -283.17 -424.50 -604.09 -858.89 -1169.64 -1570.26 -2022.29 -2523.69 -3050.11 -3610.75 

A Sources of Funds 

1 Debt Drawn Down 121.45 249.83 139.56 74.21 85.96 210.73 122.35 487.01 301.90 309.01 54.98 229.79 82.88 77.32 53.52 

2 ULB Own Contribution 101.37 130.88 30.74 22.91 26.99 70.14 39.22 100.94 75.41 73.78 71.51 46.94 26.91 26.65 23.38 

3 External Support 629.67 650.68 538.08 25.94 45.61 135.56 77.03 260.15 168.43 168.79 88.38 123.54 50.52 48.21 36.79 

4 Public Contribution 157.69 150.09 157.59 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

5 

6 

Monthly User Charges fro 

UGD 0.00 0.00 0.00 68.38 69.27 70.02 70.77 71.53 72.29 73.07 73.92 93.48 94.56 95.66 96.78 

Initial Deposit from 

Additional UGD 

Connections 0.00 5.28 5.33 5.42 5.47 4.54 4.59 4.64 4.69 4.74 6.68 6.80 6.87 6.93 7.06 

Total Inflow (B) 1010.19 1186.75 871.29 196.85 233.31 490.99 313.96 924.26 622.72 629.39 295.46 500.54 261.75 254.77 217.54 

B Disposition of Funds 

1 Project Capex 1010.19 1181.48 865.97 123.05 158.56 416.42 238.59 848.09 545.74 551.58 214.86 400.27 160.32 152.18 113.70 

2 O&M For New Project 0 5.59 21.24 115.74 123.88 134.03 150.56 164.28 193.03 214.72 237.44 260.21 274.50 289.66 305.18 

3 

Debt Servicing (Principal 

+ Interest) 10.93 24.48 37.05 48.05 55.35 81.87 104.38 166.69 194.71 263.71 295.18 341.47 353.35 373.58 371.42 

Total Outflow ( C ) 1021.12 1211.55 924.26 286.84 337.79 632.32 493.54 1179.06 933.47 1030.01 747.48 1001.95 788.17 815.41 790.29 

Net Cash Flow (B-C)= D -10.93 -24.80 -52.96 -89.99 -104.49 -141.34 -179.58 -254.81 -310.75 -400.62 -452.03 -501.40 -526.42 -560.64 -572.76 

Closing Balance 

(A+D)=E -10.93 -35.73 -88.69 -178.68 -283.17 -424.50 -604.09 -858.89 -1169.64 -1570.26 -2022.29 -2523.69 -3050.11 -3610.75 -4183.51 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23


Table No 19 J. : Financial Operating Plan- With FULL PROJECT WITHOUT REFORMS- As per Prudent Financial Norms 



2009-10 

2010-11 

2011-12 

2012-13 



Property Tax 91 92 93 94 96 97 98 99 100 101 127 129 130 132 133 

Other Tax 12 13 14 15 17 18 19 21 23 24 26 29 31 33 36 




Other Income 48 52 56 60 65 70 76 82 88 95 103 111 120 130 140 

User Charges for Sewerage (UGD) 0 0 0 68 69 70 71 72 72 73 74 93 95 96 97 

Initial Deposit for New UGD connections 0 5 5 5 5 5 5 5 5 5 7 7 7 7 7 














Total Net Project Cash Flow (E) -112 -172 -125 -275 -385 -569 -719 -1036 -1322 -1722 -2174 -2671 -3178 -3740 -4311 

Overall Closing Balance (D+E)=F -54 -43 85 91 151 144 187 77 21 -130 -270 -418 -556 -725 -897 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Table No 19 K : Calculation of Debt Service Coverage Ratio (DSCR) With FULL PROJECT WITHOUT REFORMS- As per Prudent Financial Norms 


YoY DSCR Rs.in Lakhs 

2009-10 

2010-11 

2011-12 

2012-13 

2008-09 

Particulars 

Net Surplus -37 -47 48 37 38 -7 22 -39 -29 -30 3 42 68 76 70 

Debt repayment (Old + New) 30 44 56 67 75 101 124 186 204 273 295 341 353 374 371 

YOY DSCR -1.22 -1.07 0.86 0.55 0.51 -0.07 0.18 -0.21 -0.14 -0.11 0.01 0.12 0.19 0.20 0.19 

Average DSCR 0.00 

Minimum DSCR 0.03 

Maximum DSCR 0.86 

Cumulative DSCR 

Cumulative Net Surplus -24 -70 -22 15 53 45 67 28 -1 -31 -28 14 82 158 228 

Cumulative Debt repayment obligation (New 

+Old) 30 74 130 198 272 373 497 683 887 1159 1455 1796 2149 2523 2894 

Cumulative DSCR -0.79 -0.95 -0.17 0.07 0.19 0.12 0.14 0.04 0.00 -0.03 -0.02 0.01 0.04 0.06 0.08 

Average -0.08 

Minimum 0.05 

Maximum 0.19 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23


Table No 19 L: Full Project Cash Flow With FULL PROJECT WITHOUT Reforms with additional external support 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

Rs. In Lakhs 







5 

6 


UGD 0.00 0.00 0.00 68.38 69.27 70.02 70.77 71.53 72.29 73.07 73.92 93.48 94.56 95.66 96.78 



Connections 0.00 5.28 5.33 5.42 5.47 4.54 4.59 4.64 4.69 4.74 6.68 6.80 6.87 6.93 7.06 

Total Inflow (B) 1010.19 1186.75 871.29 196.85 233.31 490.99 313.96 924.26 622.72 629.39 295.46 500.54 261.75 254.77 217.54 


1 Project Capex 1010.19 1181.48 865.97 123.05 158.56 416.42 238.59 848.09 545.74 551.58 214.86 400.27 160.32 152.18 113.70 


3 


+ Interest) 3.22 7.28 11.21 18.23 18.23 20.11 21.85 23.77 17.20 17.66 18.11 18.26 18.42 18.59 18.77 




(A+D)=E -3.22 -10.83 -32.91 -87.87 -149.86 -224.06 -315.56 -421.72 -549.04 -697.50 -866.14 -1037.81 -1222.56 -1421.24 -1634.14 

2019-20 

2020-21 

2021-22 

2022-23



Table No 19 M : Financial Operating Plan- With FULL PROJECT WITHOUT Reforms with additional external support 

2009-10 

2010-11 

2011-12 

2012-13 

2013-14 




Property Tax 91 92 93 94 96 97 98 99 100 101 127 129 130 132 133 

Other Tax 12 13 14 15 17 18 19 21 23 24 26 29 31 33 36 




Other Income 48 52 56 60 65 70 76 82 88 95 103 111 120 130 140 

User Charges from SWM 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 

















Overall Closing Balance (D+E)=F 8 66 145 166 284 384 490 591 696 798 909 1068 1272 1465 1652 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Table No 19 N : Calculation of Debt Service Coverage Ratio (DSCR) With FULL PROJECT WITHOUT REFORMS with additional external support 

SATHYAMANGALAM 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2008-09 

Particulars 

Net Surplus 18 38 58 27 43 38 42 44 32 31 32 49 75 83 77 


YOY DSCR 0.80 1.42 1.89 0.71 1.15 0.96 1.02 1.03 1.20 1.17 1.79 2.66 4.08 4.48 4.11 





Cumulative Net Surplus 31 69 126 153 196 234 275 320 351 383 415 464 539 622 699 

Cumulative Debt repayment obligation 

(New +Old) 22 49 79 117 154 194 235 278 304 331 349 367 386 404 423 

Cumulative DSCR 1.38 1.40 1.59 1.31 1.27 1.21 1.17 1.15 1.15 1.16 1.19 1.26 1.40 1.54 1.65 




2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-16 

TNUIFSL 


19.4.3 Full Project Scenario WITH Reforms 

Under FULL REFORM Scenario, the FOP for full project has been worked out as under: 

• Funding pattern as per Prudent Financial norms 

• Funding pattern based on the borrowing capacity of the ULB 

The same has been elaborated under heading 19.4.3.1 and 19.4.3.2 respectively 

19.4.3.1 Full Project Scenario WITH Reforms and Funding 

pattern based on prudent financial norms 

The cash flows from the new projects under this scenario is shown in Table 19 P. The 

financial impact for the ULB in implementing full projects through additional resources 

generated on account of reforms suggested and as per the prudent financial norms is 

given in Table 19 Q 



The ULB faces constraints in meeting the debt repayment commitments as indicated 

by the Debt Service Coverage ratio (DSCR) which falls below the prudent financial 

norms of 1.25 times. The same has been shown in Table 19 R 

The ULB would not be able to meet its financial contribution for new projects as per 

prudent financial norms of funding even if all reforms suggested are undertaken. 

To address this issue the ULB would require additional external support as the capacity 

of the ULB to borrow under this scenario would be only around Rs.5.86 Crores as against 

the loan requirement of Rs. 26.00 Crores. The same has been discussed under heading 

19.4.3.2

TNUIFSL 


19.4.3.2 Full Project Scenario WITH Reforms and with 

additional external support 

The cash flows from new projects is shown in Table 19 S and the financial impact in 

implementing the Full projects WITH reforms but with additional external support is 

given in Table 19 T. 



The ULB would be able to borrow Rs. 5.86 crs against the requirement of Rs.26.00 

crs 

With the borrowings of Rs.5.86 crs, the ULB would be able to meet its debt 

repayment commitments as indicated by the Debt Service Coverage ratio (DSCR). 

The same has been shown in Table 19-U. This is possible only due to strong external 

support 

The ULB is able to contribute its share in the funding of the identified projects 

The table below shows the funding and borrowing capacity of the ULB under “Full Project 

Scenario WITH Reforms” 

Table 19 V: FULL PROJECT SCENARIO WITH REFORMS -Funding requirements as per 

Prudent Funding Norms vs. Funding Possibilities based on borrowing capacity 

Particulars 

Full project Scenario- 

Funding based on prudent 

financial norms (Rs. Lakhs) 

Full Project Scenario – 

Funding based on borrowing 

capacity and with reform 


(Rs.Lakhs) 

Loan Amount 2600.49 586.38 

External Support 3047.38 

ULB Contribution 867.75 

Public Contribution 465.37 

4898.82 

1030.43 

465.37 

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-17

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-18 

PPP 75.08 

TNUIFSL 


75.08 

Project cost 7056.07 7056.07 

% of loan on Project 

cost 36.85% 

8.31% 

Borrowing Capacity of the ULB is 22..54% of the loan required for implementation of all the 

projects identified under CIP 

As seen from the above table, the ULB can comfortably contribute its share towards 

funding of projects identified under CIP on account of reform implementation. The 

ULB’s capability to borrow is only Rs.1030.43 Lakhs against the loan requirement of 

Rs.2600.49 Lakhs. Total external support required would be Rs.4898.82 Lakhs in order 

to implement all the identified projects envisaged under CIP.


Table No 19 P : Full Project Cash Flow With FULL PROJECT WITH REFORMS - As per Prudent Financial Norms 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

Rs. In Lakhs 








5 UGD 0.00 0.00 0.00 68.38 69.27 81.02 70.77 71.53 90.37 91.34 92.40 93.48 94.56 119.58 120.98 



6 Connections 5.28 5.33 5.42 5.47 5.86 5.92 5.98 6.05 6.11 8.18 8.33 8.41 8.48 8.64 

Total Inflow (B) 1010.19 1186.75 871.29 196.85 233.31 503.30 315.29 925.60 642.15 649.03 315.44 502.07 263.29 280.24 243.31 


1 Project Capex 1010.19 1181.48 865.97 123.05 158.56 416.42 238.59 848.09 545.74 551.58 214.86 400.27 160.32 152.18 113.70 



3 + Interest) 10.93 24.48 37.05 48.05 55.35 81.87 104.38 166.69 194.71 263.71 295.18 341.47 353.35 373.58 371.42 




(A+D)=E -10.93 -35.73 -88.69 -178.68 -283.17 -412.19 -590.44 -843.90 -1135.22 -1516.20 -1948.25 -2448.13 -2973.00 -3508.17 -4055.15 

2019-20 

2020-21 

2021-22 

2022-23



Table No 19 Q. : Financial Operating Plan -With FULL PROJECT WITH REFORMS - As Per Prudent Financial norms 

2009-10 

2010-11 

2011-12 

2012-13 

2013-14 




Property Tax 91 92 93 94 96 121 122 123 125 126 159 161 163 165 167 

Other Tax 12 13 14 15 17 18 19 21 23 24 26 29 31 33 36 




Other Income 48 52 56 60 65 70 76 82 88 95 103 111 120 130 140 


















Overall Closing Balance (D+E)=F -55 -43 84 99 166 242 370 334 377 343 330 292 247 198 171 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23


Table No 19 R : Calculation of Debt Service Coverage Ratio (DSCR) With FULL PROJECT WITH REFORMS -As per Prudent financial Norms 


2009-10 

2010-11 

2011-12 

2012-13 

2008-09 

Particulars 

Net Surplus -37 -46 47 46 45 75 94 34 69 67 110 132 159 195 190 


YOY DSCR -1.24 -1.04 0.83 0.69 0.60 0.74 0.76 0.18 0.34 0.25 0.37 0.39 0.45 0.52 0.51 





Cumulative Net Surplus -24 -70 -23 23 68 143 237 272 340 408 518 650 809 1004 1194 

Cumulative Debt repayment obligation 

(New +Old) 30 74 130 198 272 373 497 683 887 1159 1455 1796 2149 2523 2894 

Cumulative DSCR -0.81 -0.95 -0.18 0.12 0.25 0.38 0.48 0.40 0.38 0.35 0.36 0.36 0.38 0.40 0.41 




2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23


Table No 19 S: Full Project Cash Flow With FULL PROJECT WITH REFORMS with additional external support 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

Rs. In Lakhs 


Sources of Funds 

Debt Drawn Down 85.76 117.61 94.55 31.25 7.16 14.54 8.34 52.48 46.22 47.20 7.34 38.30 13.81 12.89 8.92 

ULB Own Contribution 46.57 25.20 11.48 34.62 12.66 74.09 54.38 103.49 61.04 95.12 113.39 89.87 109.80 103.97 94.74 

External Support 720.16 888.57 602.34 57.18 138.73 327.79 175.88 692.12 438.48 409.27 94.13 272.09 36.71 35.32 10.03 

Public Contribution 157.69 150.09 157.59 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 


UGD 0.00 0.00 0.00 68.38 69.27 81.02 70.77 71.53 90.37 91.34 92.40 93.48 94.56 119.58 120.98 



Connections 5.28 5.33 5.42 5.47 5.86 5.92 5.98 6.05 6.11 8.18 8.33 8.41 8.48 8.64 

Total Inflow (B) 1010.19 1186.75 871.29 196.85 233.31 503.30 315.29 925.60 642.15 649.03 315.44 502.07 263.29 280.24 243.31 

Disposition of Funds 

Project Capex 1010.19 1181.48 865.97 123.05 158.56 416.42 238.59 848.09 545.74 551.58 214.86 400.27 160.32 152.18 113.70 

O&M For New Project 0 5.59 21.68 116.23 124.41 134.62 151.21 165.00 193.81 215.59 238.39 261.26 275.65 290.92 306.56 


+ Interest) 7.72 15.82 24.33 31.69 32.29 36.76 41.15 50.12 47.81 56.65 61.57 69.21 71.07 75.02 75.79 




(A+D)=E -7.72 -23.86 -64.55 -138.66 -220.62 -305.13 -420.79 -558.40 -703.60 -878.39 -1077.78 -1306.44 -1550.18 -1788.06 -2040.80 

2019-20 

2020-21 

2021-22 

2022-23


Table No 19 T : Financial Operating Plan - With FULL PROJECT WITH REFORMS with additional external support 



2009-10 

2010-11 

2011-12 

2012-13 

2013-14 



Property Tax 91 92 93 94 96 121 122 123 125 126 159 161 163 165 167 

Other Tax 12 13 14 15 17 18 19 21 23 24 26 29 31 33 36 




Other Income 48 52 56 60 65 70 76 82 88 95 103 111 120 130 140 



Initial Deposit for New UGD 

connections 0 5 5 5 5 6 6 6 6 6 8 8 8 8 9 
















2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Table No 19 U : Calculation of Debt Service Coverage Ratio (DSCR) With FULL PROJECT WITH REFORMS with additional external support 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2008-09 

Particulars 

Net Surplus 18 60 66 34 59 71 78 31 82 45 67 88 75 116 117 


YOY DSCR 0.65 1.71 1.51 0.67 1.14 1.26 1.30 0.45 1.44 0.69 1.09 1.27 1.06 1.55 1.55 





Cumulative Net Surplus 30 90 156 190 249 320 398 429 511 556 624 712 787 903 1020 

Cumulative Debt repayment 

obligation (New +Old) 27 62 106 157 208 264 325 394 451 517 578 647 718 793 869 

DSCR 1.13 1.46 1.48 1.21 1.20 1.21 1.23 1.09 1.13 1.08 1.08 1.10 1.10 1.14 1.17 

Average 1.19 

Minimum 1.08 

Maximum 1.48 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

TNUIFSL 


19.4.4 Sustainable Investment Scenario WITH Reforms 

The sustainable investment scenario is worked out when the full project investment 

scenario indicates inability of the municipality to sustain the full identified investment. In 

this case, the identified investment is sized down to immediate felt need for the 

municipality to sustain on its own with external support and borrowings. 

Implications of this investment in terms of external support required, borrowing capacity 

of the ULB and the resultant debt service commitment, and impact on O&M of new 

projects are worked out. The outcome of this scenario will give an indication of the actual 

level of investment sustainable by the municipality with external support. 

The Capital Investment for various projects in sustainable scenario is shown in Table 19 

W 

Table 19 W Capital Investment Plan- Sustainable Scenario 

Project 

Sector Total Investment(Rs.in Lakhs) 

Water Supply 433.95 

UGD 2253.09 

Sanitation 112.11 

Storm Water Drainage 212.01 

Solid Waste Management 321.65 


Transportation 204.32 

Street Lighting 77.10 


Infrastructure 494.50 

TOTAL CAPEX 4108.73 

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-19

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-20 

TNUIFSL 


The List of projects not considered (Roads and SWD) under sustainable scenario are 

given in Table-19X 

Table 19-X: List of projects not considered for Sustainable Scenario 

Project Name 

Replacing 80% of the existing 

SWDs (67 Km) 

Creating new closed drains for 9.25 Km 

upto 2017 and 5.5 km between 2017- 

2022 

Creating new roads for 4.3 Km by 2012, 

3.7 Km by 2017 and 4.3 Km by 2022 



Relaying 47.18 Km BT roads after 

UGD Implementation (Relaying cost 

for I phase is included in UGSS) 

Improvement Kolathur and Puliam 

Kombai Road 

Pyannan Kuttai Channel ( Desilting and 

Lining- 2 Kms) from Kulathur Road 

Junction to River Bhavani 10 Meter 

wide 

**Project Cost before 

escalation (Rs.in 

Lakhs) 

786.00 

346. 07 

184.50 

80.94 

358.56 

50.00 

100.00 

Total Project Cost 1906.07 

** Project Cost when implemented with escalation would come to Rs.29.47 Crores

TNUIFSL 


19.4.4.1 Sustainable Investment Scenario WITH Reforms and 

Funding pattern based on prudent financial norms 

The cash flows from the new projects is shown in Table 19 Y and the financial impact in 

implementing sustainable projects through additional resources generated on account of 

reforms suggested and as per the prudent financial norms is given in Table 19 Z 



The ULB faces constraints in meeting the debt repayment commitments as indicated 

by the Debt Service Coverage ratio (DSCR) which falls below the prudent financial 

norms. The same has been shown in Table 19 AA 

The ULB would not be able to meet its financial contribution for new projects as per 

prudent financial norms of funding even if all reforms suggested are undertaken 

under this sustainable scenario. 

To address this issue, the ULB would require additional external support as the capacity 

of the ULB to borrow under this scenario would be only around Rs.3.19 Crores as against 

the loan requirement of Rs. 8.32 Crores. The same has been discussed under heading 

19.4.4.2 

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-21

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-22 

TNUIFSL 


19.4.4.2 Sustainable investment Scenario WITH Reforms and 

with additional external support 

The cash flows from new projects is shown in Table 19-AB and the financial impact in 

implementing the Full projects WITH reforms but with additional external support is 

given in Table 19- AC. 


The ULB is able to meet the O&M of new Projects for the next 15 years as indicated 

by its Net Surplus position. 

The ULB would be able to borrow Rs. 3.19 crs against the requirement of Rs.8.24 crs 

With the borrowings of Rs3.19 crs, the ULB would be able to meet its debt 

repayment commitments as indicated by Debt Service Coverage ratio (DSCR). The 

same has been shown in Table 19-AD. This is possible only due to strong external 

support 

Total external support required would be Rs. 23.57 crs in order to implement projects 

envisaged under sustainable scenario. 

The ULB would be able to comfortably contribute its share of funding for complete 

project implementation of identified projects 

The table below shows the funding and borrowing capacity of the ULB under 

“Sustainable Scenario WITH Reforms”

TNUIFSL 


Table 19 AE: SUSTAINABLE INVESTMENT SCENARIO WITH REFORMS -Funding 

based on prudent financial norms Vs Funding possibility based on borrowing capacity 

Particulars 

Sustainable Scenario- 

Funding based on 

prudent financial 

norms (Rs.in Lakhs) 

Loan Amount 832.09 319.08 

External 

Support 2163.17 

ULB 

Contribution 573.02 

Public 

Contribution 465.37 

PPP 75.08 

Project cost 4108.73 

% of loan on 

Project cost 20.25% 

Sustainable scenario – Funding 

based on borrowing capacity 

(Rs.in Lakhs) 

2406.90 

842.30 

465.37 

75.08 

4108.73 

7.76% 

Borrowing Capacity of the ULB is 38.34 % of the loan required for investments under 

sustainable scenario 

As seen from the above table, the ULB can comfortably contribute its share of funding 

for full project implementation of identified projects The ULB’s capability to borrow is 

only Rs. 319.08 Lakhs against the loan requirement of Rs.832.09 Lakhs. Total external 

support required would be Rs. 2406.90 Lakhs in order to implement projects envisaged 

under sustainable scenario. 

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-23


Table 19 Y -Full Project Cash Flow of Identified New projects in Sustainable Scenario- As per Prudent Financial norms 

Rs. In Lakhs 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 







5 

6 


UGD 0.00 0.00 0.00 68.38 69.27 81.02 70.77 71.53 90.37 91.34 92.40 93.48 94.56 119.58 120.98 



Connections 5.28 5.33 5.42 5.47 5.86 5.92 5.98 6.05 6.11 8.18 8.33 8.41 8.48 8.64 

Total Inflow (B) 1010.19 1021.38 871.29 157.65 192.15 212.46 315.29 261.56 179.98 177.06 242.05 119.09 125.15 151.37 154.11 


1 Project Capex 1010.19 1016.10 865.97 83.85 117.40 125.58 238.59 184.05 83.57 79.61 141.47 17.29 22.18 23.31 24.49 


3 


+ Interest) 10.93 24.48 37.05 46.05 51.26 60.78 81.02 124.30 128.74 137.09 139.33 140.09 140.88 137.57 127.57 




(A+D)=E -10.93 -35.73 -84.84 -168.87 -264.04 -365.37 -507.68 -705.87 -901.99 -1116.60 -1342.21 -1577.96 -1822.49 -2048.44 -2273.20 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23


Table No.19 Z : Financial Operating Plan - Sustainable Scenario - Prudent Financial Norms 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 




Property Tax 91 92 93 94 96 121 122 123 125 126 159 161 163 165 167 

Other Tax 12 13 14 15 17 18 19 21 23 24 26 29 31 33 36 




Other Income 48 52 56 60 65 70 76 82 88 95 103 111 120 130 140 




connections 0 5 5 5 5 6 6 6 6 6 8 8 8 8 9 















Overall Closing Balance (D+E)=F -55 -26 88 113 189 318 452 538 656 790 943 1201 1411 1671 1962 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Table No 19 AA : Calculation of Debt Service Coverage Ratio (DSCR) Sustainable Scenario- Prudent Financial Norms 

YOY DSCR Rs.in Lakhs 

2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2008-09 

Particulars 

Net Surplus -37 -29 51 54 54 111 107 114 144 154 168 233 241 281 277 


YOY DSCR -1.24 -0.67 0.90 0.83 0.77 1.39 1.06 0.79 1.04 1.06 1.21 1.66 1.71 2.04 2.17 


Minimum DSCR -0.67 



Cumulative Net Surplus -24 -53 -3 51 106 217 323 437 581 735 903 1136 1377 1658 1936 



Cumulative DSCR -0.81 -0.72 -0.02 0.26 0.40 0.63 0.72 0.74 0.80 0.84 0.89 0.99 1.06 1.16 1.24 




2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23


Table 19 AB - Full Project Cash Flow of Identified New projects in Sustainable Scenario- Additional External Support 

Rs. In Lakhs 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 







Monthly User Charges 

5 fro UGD 0.00 0.00 0.00 68.38 69.27 81.02 70.77 71.53 90.37 91.34 92.40 93.48 94.56 119.58 120.98 



6 Connections 5.28 5.33 5.42 5.47 5.86 5.92 5.98 6.05 6.11 8.18 8.33 8.41 8.48 8.64 

Total Inflow (B) 1010.19 1021.38 871.29 157.65 192.15 212.46 315.29 261.56 179.98 177.06 242.05 119.09 125.15 151.37 154.11 


1 Project Capex 1010.19 1016.10 865.97 83.85 117.40 125.58 238.59 184.05 83.57 79.61 141.47 17.29 22.18 23.31 24.49 



3 + Interest) 7.72 15.82 26.26 33.28 33.28 36.14 39.21 43.12 36.10 36.10 36.10 36.10 36.10 36.10 36.10 




(A+D)=E -7.72 -23.86 -62.17 -133.44 -210.62 -287.32 -387.82 -504.83 -608.31 -721.94 -844.33 -976.09 -1115.84 -1240.32 -1373.61 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23


Table No.19 AC : Financial Operating Plan - Sustainable Scenario- Additional External Support 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 




Property Tax 91 92 93 94 96 121 122 123 125 126 159 161 163 165 167 

Other Tax 12 13 14 15 17 18 19 21 23 24 26 29 31 33 36 




Other Income 48 52 56 60 65 70 76 82 88 95 103 111 120 130 140 




connections 0 5 5 5 5 6 6 6 6 6 8 8 8 8 9 
















2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Table No 19 AD : Calculation of Debt Service Coverage Ratio (DSCR) Sustainable Scenario- Additional extermal support 


YOY DSCR Rs.in Lakhs 

2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2008-09 

Particulars 

Net Surplus 42 14 51 46 57 79 27 61 90 101 91 224 232 272 267 


YOY DSCR 1.54 0.41 1.12 0.88 1.08 1.43 0.45 0.98 1.98 2.24 2.52 6.21 6.42 7.52 7.40 





Net Cumulative Surplus 55 69 120 166 223 302 329 390 479 581 671 896 1127 1399 1666 



Cumulative DSCR 2.02 1.11 1.12 1.04 1.05 1.13 1.01 1.00 1.10 1.21 1.30 1.62 1.92 2.24 2.53 




2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-24 

19.5 Conclusion 

TNUIFSL 


Prudent Financial Norms of funding of projects under Full Project Investment scenario 

and Sustainable Investment Scenario and funding possibilities of Identified Projects 

under Full Investments Scenario are summarized in Table 19 AF below: 

Table 19AF: - Comparative statement for the full project scenario vis-à-vis sustainable 

scenario:- 


Water Supply 326.75 

Full Project Scenario - 


escalation (Rs.in Lakhs) 

Sustainable Scenario - 


escalation (Rs.in Lakhs) 

326.75 

UGD 2042.00 2042.00 

Sanitation 85.00 85.00 

Storm Water 

Drainage 

Solid Waste 

Management 



1379.07 

253.49 

831.00 

147.00 

253.49 

157.00 

Street Lighting 60.76 60.76 



410.50 

410.50 

TOTAL CAPEX 5388.56 3482.49 

** Project Cost when implemented with escalation would come to 

a. Full Project Scenario –Rs.7056.07 Lakhs 

b. Sustainable Scenario- Rs. 4108.73 Lakhs.

TNUIFSL 


Table 19 AG: FULL PROJECT SCENARIO AND SUSTAINABLE SCENARIO -Funding 

pattern based on prudent financial norms 

Particulars 

Total Project 

Cost 

ULB 

Contribution 

Public 

Contribution 

Full Project Scenario ( Rs.in 

Lakhs) – NORMS 

Sustainable 

Scenario ( Rs.in 

Lakhs) – NORMS 

7056.07 4108.73 

867.75 573.02 

465.37 465.37 

PPP 75.08 75.08 

Loan 2600.49 832.09 

External Support 3047.38 2163.17 

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-25

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-26 

TNUIFSL 


Table 19 AH: FULL PROJECT SCENARIO AND SUSTAINABLE SCENARIO -Funding 

pattern based on borrowing capacity 

Particulars 

Total Project 

Cost 

Means of Finance 

ULB 

Contribution 

Public 

Contribution 


WITHOUT reforms- 

Funding based on 

borrowing capacity 

(Rs.in Lakhs) 

Full Project 

Scenario WITH 

reforms- Funding 

based on 

borrowing 

capacity (Rs.in 

Lakhs) 

Sustainable 

Scenario WITH 

Reforms- 

Funding based 

on borrowing 

capacity (Rs.in 

Lakhs) 

7056.07 7056.07 4108.73 

475.08 1030.43 842.30 

465.37 

465.37 

465.37 

PPP 75.08 75.08 75.08 

Loan 180.55 586.38 319.08 

External 

Support 

O&M 

5860.00 4898.82 2406.90 

Able to meet O&M costs 

of projects identified 

under CIP – Full Projects 

Able to meet 

O&M costs of 

projects identified 

under CIP- Full 

Projects 

Able to meet 

O&M costs of 

project identified 

under 

Sustainable 

scenario 

Average 1.32 1.19 1.43 

Minimum 1.15 1.08 1.00 

Maximum 1.65 1.48 2.53

TNUIFSL 


1. Under all scenarios discussed above, the ULB would be able to meet its O & M expenses 

for identified projects under CIP. This is reflected in the Projected FOP worked out for all 

3 scenarios. 

2. The ULB would face constraints in debt repayment on account of projects to be 

implemented both under Full Project scenario and Sustainable scenario without large 

external support and full reform implementation. The ability of ULB to borrow is 

limited against the loan requirement for full project implementation and even for projects 

identified under sustainable scenario. The only way to address the issue is full reform 

implementation coupled with strong external support 

3. ULB’s required financial contribution to Project implementation would be severely hit if 

suggested reforms are not implemented for full project implementation. Against the 

required ULB’s contribution of Rs.10.30 crs for full implementation of projects 

identified, the ULB would only be able to contribute Rs.4.75 crs if suggested reforms are 

not fully implemented. 

4. For implementing all the projects identified under CIP, ULB’s ability to borrow is only 

6.94% of the loan requirement of Rs.26.00 crs (if reforms suggested are not 

implemented) and 22.54% (if all suggested reforms are undertaken). Under sustainable 

scenario, the ULB’s ability to borrow with full reform implementation is about 38.34% of 

the loan requirements of Rs. 8.32 crs. Thus implementation of all reforms suggested leads 

to increase in borrowing capacity of the ULB which improves the ULB’s possibilities of 

undertaking all the projects required for improvement of Sathyamangalam town 

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-27

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-28 

19.6 Recommendations 

TNUIFSL 


1. It is suggested that all reforms outlined in the Reform Implementation Schedule needs to 

be implemented fully in order to fund the projects envisaged both under Full Project 

Investment Scenario and Sustainable Investment scenario. The time frame envisaged 

under Reforms Implementation Schedule in Figure 19.1 needs to be firmly adhered to. 

2. External support is required for full project implementation and sustainable project 

implantation. The amount of external support required varies between Rs.24.06 crs for 

sustainable scenario with reforms, Rs.48.99 crs for full project scenario with reforms and 

Rs.58.60 crs for full project implementation without reforms 

3. Full reform implementation by the ULB backed by strong external support is a must for 

bringing in projects required for improving the town over the next 15 years 

4. The reform efforts of the ULB need to be supported and rewarded by financial assistance 

from funding agencies and strong external support as indicated in the Table above in 

order to implement all projects suggested under CIP. 

5. The ULB would need to bring in Rs.842.30 Lakhs over the 15 year period to meet its 

share of contribution towards projects to be implemented under sustainable scenario. This 

is possible only if ULB implements all the reforms suggested and highlighted in this 

report within the scheduled time frame.

Property Tax 

90% Collection Efficiency 

Reforms 

Current status 2008-09 

84% (current 

collection) 

Mandatory Implementation of Revision of Property Tax 

once in every five years is required Once in 10 years 

Digitization of the property maps through GIS Not done 

Computerization of Property tax records Initiated 

Introducing alternate methods of tax payment 

(ECS/EFT/Online Payment) 

Currently in Municipal 

office only 

Other Reforms in property taxes as mentioned in 

Chapter 18 of this report Limited extent 

Water Supply 

Figure 19-1: Reforms Implementation Schedule For Sathyamangalam 

Service coverage of water connections to be increased 

from current 53% to 85% 53% 53% 56% 60% 63% 67% 70% 74% 78% 81% 

Revision of Water supply charges and initial deposit for 

new water connection Ad hoc basis 

2009-10 

2010-11 

Figure 19-1: Reforms Implementation Schedule 


2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

85% 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Reforms 

One time payment options for monthly water charges Not done 

Incentive and penalty structure for payment of water 

taxes and charges. Not done 

Water Leakage Audit for Un-accounted for Water (UFW) Not done 

Energy Audit 


Study has been 

initiated 

Periodic maintenance of Water supply systems Ad hoc maintenance 

Periodic Training to Water Supply Staff Regularly 

Privatization in routine maintenance relating to water 

supply Not done 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Reforms 


Privatization of maintenance of sewerage system can be 

considered to reduce the establishment charges of 

municipality and O&M Charges NA 

Revision in Sewer Monthly user charges NA 

Revision in initial deposit for new sewer connections NA 

Periodic maintenance of Sewer supply systems NA 

Annual Maintenance Contract for Sewage Pumping 

Stations and Sewage Treatment Plants can be adopted. NA 

Incentive and penalty structure for payment of Sewer 

taxes and charges. NA 

Periodic technical training to its engineering cell is 

required in O&M of Sewage Treatment Plant, Pumping 

Stations and Sewer Networking System. NA 



2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Reforms 


Door to door collection of garbage at household level and 

segregation of waste at source 

Private Sponsorship of bins for waste segregation at 

source Not done 

Introduction of user charges for Non-Domestic assesses Not done 

Introduction of user charges for Domestic assesses Not done 

Annual Maintenance Contract for Vehicles used in SWM Not done 


Implemented in 22 out 

of 27 wards 

Potential for getting carbon credit benefit through the 

Clean Development Mechanism (CDM) need to be 

studied in making a comprehensive solid waste 

management scheme Not undertaken 

Periodic Training to Public Health Staff Regularly 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Reforms 

Roads, Traffic & Transportation 

Relaying Bitumen roads once in three years with patch 

works to be undertaken based on the need in between 

years ( Through use of recyclable materials ) Adhoc basis 

Street Lighting & Energy Saving 

Mechanism 

Meeting the norms of one pole per 30 meters by 2012 48 metres 

Energy Audit Studies Initiated 

Private parties can be involved for financing, operation 

and maintenance of energy efficient street light projects 

to reduce the cost incurred for the same. 


Only O & M of street 

lights 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Municipal Assets 

Reforms 


Creation and updating the Comprehensive asset register 

with regard to land and building Not Comprehensive 

Valuation of assets and liabilities of the Municipality Not done 

Periodic maintenance of Social Infrastructure Ad hoc 

Accounting Reforms 

Comprehensive Budgeting incorporating O&M costs of 

various assets Not Done 

Periodic Training to Accounting Staff Regularly 

Finalisation of accounts and completion of audit of 

accounts with in that specific year Not done 

Zero based budgeting would need to be carried out for 

continual monitoring of budgets and cash flow 

management Not done 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23


Particulars Current Status 2008-09 

Water Supply 

OHT near Indira Nagar (1 lakh capacity) by 

2017 

Identiifed based on 

Demand supply Gap 

Analysis and to be 

implemented in 2013- 

14 ULB 


meeting and to be 


Replacing distribution network 5 Km 4 inch PVC 09 


Replacing 8 inch CI pipe to 8 inch PSC pipe for meeting and to be 

ULB 

1.5 KM 




ULB 

Laying 2 Km 12 inch PSC pumping main line in implemented in 2013the 

proposed bye-pass road 

14 

Identiifed in Vision Plan 

and to be implemented 

ULB 

Erection of bore well with mini power pump in 2009-10 



ULB 

Digging of open well at head works 

in 2008-09 



ULB 

Replacement of old motors and pump sets in 2008-09 ULB 

Laying new distribution network for 21.1 Km by 

2017 and 2.13 Km by 2022 

Digging of Bore Well at Kombupallam ( 5 Nos) 




implemented from 2014- 

15 till 2018-19 ULB 




09 ULB 

Assistance 

Technical Financial 

Government/Financial 

Institution. ULB 





Figure19-2: Project Implementation Schedule for SATHYAMANGALAM 

Figure19-2: Project Implementation Schedule 













2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23



UGSS for Sathyamangalam 

Creating new toilet blocks (5 Nos) 

DPR Prepared by 

TWAD TWAD, ULB 

Assistance 




10 ULB ULB 

Provision of Public Conviniences (2 Nos) - W.No Identiifed in Vision Plan 

: 19 Mariamman koil street, W.No : 26 and to be implemented 

thaelkaradu street, 

in 2008-09 ULB ULB 

Creating new toilet blocks in Anna nagar, Kasi 

kadu, Puduvalavu, Andavar Nagar, 

Kulankaradu, Mondikardu, Kambathrayaputhur 

and Thoopur colony (I more), in Ward no 21 and 

in Pillaiyar koil street 


Provision of SWDs for 9.16 Km 



implemented in phases 

from 2013-14 till 2017- 

18 ULB ULB 

UIDSSMT scheme and 

to be implemented in 

two phases in 2014-15 

and 2015-16 ULB 

Identified Based on 

Replacing 80% of the existing SWDs (67 Km); Demand Supply Gap 

{Currently only 40% of the existing drains (33.5 analysis and to be 

km) are taken for capital works} 

implemented in phases ULB 

Creating new closed drains for 9.25 Km upto 

2017 and 5.5 km between 2017-2022 

Pyannan Kuttai Channel ( Desilting and Lining- 

2 Kms) from Kulathur Road Junction to River 

Bhavani 10 Meter wide 

Identified Based on 

Demand Supply Gap 

analysis and to be 

implemented in phases ULB 




10 ULB 


Institution. ULB, Public 

Contribution 

Support from 

Government , Financial 

Institution and ULB 

Support from 



Support from 



Support from 




2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23



Purchasing Dumper placer vehicle (2 Nos) 

Purchasing 12 Dumper placer bins 



implemented in 2008- ULB 



implemented in 2008- ULB 


Protective gear for Conservancy worker meeting and to be 

(Workers will get safety gear once in two years) implemented in phases ULB 

Procuring Separate bins for Waste Segregation 

at source for each household (with private 

sponsorship) 



implemented in phases ULB and PSP 




Improving exisiting compost yard in Attany Road 10 ULB 

Contribution to the Regional Landfill Facility 

Roads, Traffic & 


Creating new roads for 4.3 Km by 2012, 3.7 Km 

by 2017 and 4.3 Km by 2022 

Converting 4.5 Km earthen roads into BT road 





Analysis ULB 




implemented in Phases ULB 





15 ULB 





Assistance 

Support from 

Government and ULB 

Support from 


Support from 


Support from 


Support from 

Government, Financial 

Instiution and ULB 

Support from 

Government, Financial 

Instiution and ULB 

Support from 


institution, ULB 

Contribution 

Support from 



Contribution 

Support from 



Contribution 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23


Relaying 47.18 Km BT roads after UGD 

Implementation (Relaying cost for I phase is 

included in UGSS) 







Improvement Kolathur and Puliam Kombai Roadimplemented 

in phases ULB 

Providing Infrastructural facilities to the existing 

Bus stand 

widening existing bus stand 

Street Lighting & Energy 

Saving Mechanism 

Installing energy saving streelights 873 by 2012; 

124 by 2017 and 142 by 2022 

Master Plan Proposal 


in 2011-12 ULB 



in 2012-13 ULB 

Assistance 




implemented in Phases PSP ULB 

Replacing the inefficient pumps with new 

pumps of suitable specification to reduce the 

power consumption in satyamangalam Scheme Based on TERI Report 

1&2 

No. 20051B33 PSP ULB 

Installation of voltage controller& timers 

Installation of electronic chokes in place of 

conventional copper chokes and 36 w tube 

lights 

Based on TERI Report 


Based on TERI Report 


Support from 



Contribution 

Support from 



Contribution 

Support from 



Contribution 

Support from 



Contribution 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23


Socio-Economic Infrastructure 

Improvements to the existing municipal high 

school 

Parks and playfield development 

Developing 11 approved layouts into parks and 

playfields 

developing vegetable market area 

IHSDP 

Renovating Rangasamudram Burial ground 

Creating Gassifier after 2017 

Creating New Modern Slaughter House 

Constructing office space and Shops in Old 

Chatiram land 

Assistance 



in 2008-09 ULB ULB 



in 2010-11 ULB 






in 2008-09 PSP PSP 

IHSDP Proposal to be 


09 ULB 




09 ULB 




19 ULB 




10 


ULB 



12 ULB 

Renovating Community hall (dining hall in first Identified during OWG 

floor, Bride and groom room with attached toilet, meeting and to be 

compound wall with CC pavement in the implemented in 2009setback 

areas) 

10 


ULB 

Creating 150 Sq.m space by demolishing meeting and to be 

Chairman's block 


Concrete roofing for Computer Hall 

10 ULB 

Support from 


Support from 


Support from 

Government/ULB, 

Beneficiary Contribution 

Support from 


Support from 


Support from 


Support from Govt, 

Financial Institution and 

ULB 

Support from 


Support from 



2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

city corporate cum business plan - Municipal

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