Vellakovil City Development Plan - Municipal

City Development Plan for Vellakoil Municipality SMEC India Pvt Ltd
Final Report TNUDP III
d) Interest
Interest on loan have been provided based on the sanction rate for each loan. Repayment of loans
are based on the repayment schedule of each loan.
Sewerage & Water Supply Loan
It is assumed that all new loan shall carry interest rate of 9.5% per annum.
The loan from TNUIFSL shall be repaid over a period of 20 years with 5 years moratorium.
Other Projects Loan
It is assumed that all new loan shall carry interest rate of 9.5% per annum.
The loan from TNUIFSL shall be repaid over a period of 10 years with 2 years moratorium.
e) Depreciation
Depreciation is provided based on the rates adopted by the Municipality for previous years.
f) Provision of doubtful debts
Doubtful debts have been provided as under :
Table 8.14 Assumptions – Provision of doubtful debts
Provision for Doubtful Debts is assumed @ 2% on total revenue for Revenue Fund
8.5.3 Collections
a) Property tax
Table 8.15 Assumptions – Property tax collection
The current property tax collection is 97% The same shall improve to 97%
The arrears property tax collection is 21% The same shall improve to 50%
b) Profession tax
Table 8.16 Assumptions – Profession tax
The current profession tax collection is 89% The same shall improve to 100%
The arrears profession tax collection is 100% The same shall improve to 100%
c) Other Non Tax Income
Table 8.17 Assumptions – Other Non Tax Income
The current rental / lease collection is 99% The same shall be 100%
The arrears collection % of rent / lease 30% The same shall improve to 60%
d) Water Charges
Table 8.18 Assumptions – Water Charges
The current water charges collection is 99% The same shall improve to 85%
The arrears water charges collection is 56% The same shall improve to 60%
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