Vellakovil City Development Plan - Municipal

Final Report City Development Plan for Vellakoil Municipality
5. PROPOSED REFORMS IN URBAN MANAGEMENT
In the Final Report a detailed action plan and implementation schedule to aid the effective execution of the
business plan would be furnished. Achieving the set objectives would require a high degree of commitment
from the municipality and active support of the council and the state government.
• The municipality will be expected to adopt measures to improve property tax base, ensure
operational efficiency in street lighting and water supply, computerisation of Municipal functions,
introduce charges for SWM, timely auditing and online publishing of account statements , asset
management plan , capacity building initiatives in the engineering, health and accounts sections.
• The Municipal council may assume charge of increase in water charges, removal of public
fountains, privatisation initiatives, and premobilisation of deposits, parking / advertisement
regularisation plan and execution of property mapping exercise. The council would also be required
to include charges for SWM (non-domestic) and regularise unauthorised layouts.
• The expectations from the State Government are fast track litigation for disputed properties,
enacting Community Participation law, facilitating private participation in investments, ensuring
transparency in accounting and creating public awareness on the roles and responsibilities of the
citizens.
6. ESTIMATION OF INVESTMENT CAPACITY
The borrowing and investment capacities of the town are arrived considering the revenue income
and expenditure under the sustainable scenario, after implementation of the mandatory reforms
proposed in this report.
The investment capacity for the sustainable scenario can be summed up as below:
Summary of Borrowing and Investment Capacity
Description Scenario I Scenario II Scenario III
Borrowing Capacity Rs. 373.26lacs Rs. 744.13 lacs Rs. 937.48 lacs
Investment Capacity Rs. 1493.02 lacs Rs. 4134.08 lacs Rs. 5208.24 lacs
Investment Requirement - Rs. 9018.12 lacs Rs. 9018.12 lacs
Sustainable investment capacity % - IC / IR - 46% 57.75%
Scenario I - Estimation of Investment Capacity on as is where basis
Scenario II - Estimation of Investment Capacity with Projects & Growth Rate of 7.5% for Devolution Funds
Scenario III - Estimation of Investment Capacity with Projects & Growth Rate of 10% for Devolution Funds.
7. INFERENCE
The investment capacity of Vellakoil Municipality on ‘As is Where Basis’ works out to Rs. 1493
lacs.
The investment capacity of Vellakoil Municipality works to 46% in case of Scenario II (Growth
Rate of Devolution Funds assumed @ 7.5% p.a.) and 58% in case of Scenario III (Growth
Rate of Devolution Funds assumed @ 10% p.a.).
In value terms the investment capacity works out to Rs. 4135 lacs under Scenario II and Rs.
5210 lacs under Scenario III.
It may be observed that the investment capacity has improved with the introduction of new
projects as compared to ‘As is Where Basis’ scenario. The same is on account of the fact that
the Municipality has large number of commercial and industrial assessments, which are
presently untapped on account of water and sewerage connections.
Thus it can be inferred that the investment capacity of the Municipality is around 46% of the
total investment requirement.