Vellakovil City Development Plan - Municipal

City Development Plan for Vellakoil Municipality SMEC India Pvt Ltd
Final Report TNUDP III
7.4 MANAGEMENT OPTIONS FOR LAND ASSETS
The foregoing account of the movable and immovable assets of the Municipality includes basically
lands, parts of which are occupied by construction of structures for various uses. The structural
elements in the form of buildings including OHTs, flow elements relating to essential services such
as water supply, drainage, UGD, street lights and the like are designed with a design life time. The
lands however as a base have no such limiting factor in terms of time. Thus the super structures and
the constructed elements below the ground are depreciating in their values as they age. But the land
assets both constructed and un-constructed keep appreciating in the standard and market values. In
fact, the rate of appreciation of the lands is of great significance from the point of worthiness of the
concerned local body and, it is invariably much faster in its appreciating value compared to the rate
of depreciation of structures imposed on them. Also, the rate of depreciation standardized for
various items of the structures is much more than the actual while taking into consideration the life
time of such structures till the point of their condemnation.
Generally, the assets of the local body, particularly the lands are rarely maintained and their values
in the management of the resources of the local body are little considered. There must be a scientific
approach town wise to evolve a dynamic model of the changing values of the assets both in terms of
appreciation and depreciation from time to time, particularly when sizable developments take place.
It is important to keep in view that as per the objectives of the devolution of functions and powers to
the urban local bodies under the 74 th Constitutional Amendment Act, the value of the lands and
properties are necessarily to be assessed depending on their location, land use and intensity of
development over a time scale. In order to systemize the highly dynamic factor of values of the
properties under local body, it is essential for an efficient management of the total assets owned by
local body.
The suggestions for the improvement of land asset management are listed below:
1. Implementation of Asset Management Plan
2. Establishment of GIS inventory mapping for Municipality owned lands.
3. Use of land assets for borrowing loans from capital market.
4. Identifying the most remunerative activity by public–private participation, BOT, BOOT
initiatives.
5. Removal of encroachments on Municipal land parcels.
6. Explore possibilities of acquiring additional land parcels for future requirements
7.5 PROPOSED NEW ASSETS
The assets creation by way of the projects proposed under CCCBP for implementation in the years
to come are indicated with the capital investment values as in table below
Table 7.3 New Assets for the year - 2010 to 2015
S.N Physical Infrastructure facilities Amount
( in lakhs)
1 Water Supply 1199.12
2 Sewerage System 3300.00
3 Storm Water Drains 300.00
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