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