City Corporate Cum Business Plan - Municipal

Government of Tamil Nadu 

Tamil Nadu Urban Development Fund 

City Corporate Cum Business Plan 

Karaikudi Municipality 

Final Report 

March 2007 

Wilbur Smith Associates Private Limited

Abbreviations and Acronyms 

BOT : Build, Operate and Transfer 

BPL : Below Poverty Line 

BT : Black Top 

CAA : Constitution Amendment Act 

CAGR : Compounded Annual Growth Rate 

CC : Cement Concrete 

CCP : City Corporate Plan 

CMA : Chennai Metropolitan Area 

CMDA : Chennai Metropolitan Development Authority 

CMWSSB : Chennai Metropolitan Water Supply and Sewerage Board 

CPHEEO : Central Public Health Environmental Engineering Organisation 

CSC : Community Structure Component 

CUA : Chennai Urban Agglomeration 

DIC : District Industries Centre 

DPR : Detailed Project Report 

DWCUA : Development of Women and Children in Urban Areas 

ELSR : Elevated Storage Reservoir 

FOP : Financial and Operating Plan 

FY : Financial Year 

G.S.T. Road : Grand South Trunk Road 

gm : Grams 

GoI : Government of India 

GoTN : Government of Tamil Nadu 

gpcd : Grams per Capita per Day 

GLSR : Ground Level Storage Reservoir 

ISP : Integrated Sanitation Program 

Ha : Hectares 

HH : Households 

HSC : House Service Connection 

IPT : Intermediate Public Transport 

kg : Kilograms 

LCS : Low Cost Sanitation 

Lit : Litres 

LL : Lakh Litres 

LPA : Local Planning Area 

lpcd : Litres Per Capita Per Day 

m : Meters 

ML : Million Litres 

MLD : Million Litres per Day 

MSW : Municipal Solid Waste 

MT : Metric Ton 

MTC : Metropolitan Transport Corporation 

NGO : Non-Governmental Organisations

NH : National Highway 

Nos : Numbers 

NSDP : National Slum Development Program 

O&M : Operation and Maintenance 

OHT : Overhead Tanks 

PSP : Public Stand Post 

PWD : Public Works Department 

SDBC : Semi-Dense Bituminous Concrete 

SFC : Second Finance Commission 

SH : State Highway 

SI : Sanitary Inspector 

SJSRY : Swarna Jayanti Shehari Rozgaar Yojna 

SO : Sanitary Officer 

Sq. km : Square Kilometres 

STP : Sewage Treatment Plant 

SWM : Solid Waste Management 

TCS : Thrift & Credit Societies 

TNEB : Tamil Nadu Electricity Board 

TNRDC : Tamil Nadu Road Development Corporation 

TNSCB : Tamil Nadu Slum Clearance Board 

TNUDP : Tamil Nadu Urban Development Project 

TNUIFSL : Tamil Nadu Urban Infrastructure Financial Services Limited 

tpd : Tons per Day 

TWAD : Tamil Nadu Water Supply and Drainage Board 

UGD : Underground Drainage 

ULB : Urban Local Body 

USEP : Urban Self Employment Program 

UST : Urban Skill Training 

UWEP : Urban Wage Employment Program 

VAMBAY : Valmiki Ambedkar Awas Yojana 

W : Watts 

WBM : Water Bound Macadam 

NMR Nominal Muster Roll

Contents 

TNUIFSL_CCP_BP_Karaikudi 

I. Background.....................................................................................................................................1 

A. Profile of Karaikudi ................................................................................................................1 

1. Objectives of the study ............................................................................................................2 

2. Scope of Work .........................................................................................................................2 

B. City Corporate cum Business Plan..........................................................................................3 

1. City Corporate cum Business planning Approach..................................................................3 

2. Source of Data ........................................................................................................................3 

C. Vision for Karaikudi Town.....................................................................................................4 

D. Report Structure ......................................................................................................................5 

II. City Demography........................................................................................................................7 

B. Population Trends and Urbanization.......................................................................................7 

1. Density Pattern .......................................................................................................................9 

C. Economic Development........................................................................................................11 

1. Sectoral Growth ....................................................................................................................11 

2. Industrial Development.........................................................................................................11 

3. Health....................................................................................................................................11 

4. Education ..............................................................................................................................12 

E. Growth Trends and Projections.................................................................................................13 

1. Growth Trends and Projections............................................................................................13 

2. Population Projection...........................................................................................................13 

III. Urban Management...................................................................................................................15 

A. Institutions and Capacity.......................................................................................................15 

1. Institutional Arrangements and Policy Context....................................................................15 

2. Service Delivery and Performance of Urban Local Body.....................................................16 

B. Organization Structure of Urban Local Body .......................................................................16 

1. Administrative Wing..............................................................................................................16 

2 Executive Wing......................................................................................................................16 

IV. Planning & Land Use Management ..........................................................................................19 

A. Planning Efforts in the Past...................................................................................................19 

1. Master Plan Outline..............................................................................................................19 

2. Master Plan Implementation and Implications.....................................................................19 

B. Land Use Management .........................................................................................................19 

1. Land Use Pattern – Current and Future...............................................................................19 

2. Development Patterns – Growth Areas and Direction .........................................................22 

C. Key Developmental Issues....................................................................................................22 

V. Infrastructure Services ..............................................................................................................24 

A. Physical Infrastructure ..........................................................................................................24 

1. Water Supply.........................................................................................................................24 

2. Sewerage and Sanitation.......................................................................................................29 

3. Storm Water Drainage and Rejuvenation of Water Bodies ..................................................30 

4. Solid Waste Management......................................................................................................33 

5. Roads and Traffic Management............................................................................................37 

6. Traffic and Transportation....................................................................................................39 

7. Street lighting........................................................................................................................42 

VI. Finances of Karaikudi Municipality ...............................................................................................44 

A. Municipal Financial Management ........................................................................................44 

1. Municipal Fund.....................................................................................................................44 

2. Financial Status ....................................................................................................................44 

3. Revenue Account...................................................................................................................46 

4. Water Supply and Drainage Account....................................................................................53 

5. Capital Account ....................................................................................................................56 

6. Assets and Liabilities ............................................................................................................57 

iii


7. Key Financial Indicators and Issues.....................................................................................58 

VII. Urban Basic Services for Poor..................................................................................................61 

A. Overview...............................................................................................................................61 

1. Water Supply.........................................................................................................................61 

2. Sanitation ..............................................................................................................................62 

3. Roads and Street lights .........................................................................................................62 

B. Poverty Alleviation and Community Development..............................................................64 

1. Policies, Targets and Programs............................................................................................64 

2. Government Assisted Schemes ..............................................................................................64 

VIII. Infrastructure Development and Service Provision ..............................................................69 

A. Rationale, Need and Demand................................................................................................69 

1. Water Supply.........................................................................................................................70 


3. Storm Water Drainage & Rejuvenation of Water Bodies .....................................................72 



6. Street Lighting.......................................................................................................................80 

7. Poverty Alleviation................................................................................................................80 

B. Project Identification for Service Delivery ...........................................................................81 

1. Cost Estimation - Water Supply............................................................................................81 


3. Storm Water Drainage & Rejuvenation of Water Bodies .....................................................83 




7. Other Identified Projects.......................................................................................................84 

IX. Asset Management Plan............................................................................................................86 

A. Overview...............................................................................................................................86 

1. Asset Inventory......................................................................................................................86 

2 Information of Municipal Assets. ..........................................................................................86 

3 Strategies...............................................................................................................................89 

X. Resource Mobilization Initiatives .............................................................................................92 

A. Scope in Savings and Revenue Generation...........................................................................92 

1. Infrastructure ........................................................................................................................92 

2. Assets.....................................................................................................................................92 

B. Sector Wise Savings .............................................................................................................92 

1. Water supply .........................................................................................................................92 



4. Assets...................................................................................................................................101 

C. Additional Resource Mobilization ......................................................................................103 

1. Parking Fees .......................................................................................................................103 

2. Advertisement Fee...............................................................................................................103 

3. Conservancy Fee.................................................................................................................104 

4. Summary .............................................................................................................................104 

XI. Capital Investment Plan & Financial Sustainability ...............................................................107 

A. Capital Investment Plan ......................................................................................................107 

B. Financial Sustainability.......................................................................................................110 

1. Financial Sustainability ......................................................................................................110 

2 Basic Assumptions for Projections .....................................................................................111 

3. Project Cash Flows and FOP Results.................................................................................122 

XII. Urban Governance ..................................................................................................................130 

A. Urban Governance ..............................................................................................................130 

1. Current Initiatives...............................................................................................................130 

2. Strategies.............................................................................................................................130 

iv

Tables 


Table 1.1: Goals and Service Outcomes .................................................................................................4 

Table 2.1: Municipal Population and Decadal Growth Rate ..................................................................9 

Table 2.2: Town Level Density ..............................................................................................................9 

Table 2.3: Ward Wise Density Pattern - 2001 ........................................................................................9 

Table 2.4: Occupational Details............................................................................................................11 

Table 2.5: Health Facilities in Local Body ...........................................................................................12 

Table 2.6: Education Facilities in Local Body......................................................................................12 

Table 2.7: Population Projection by Various Methods .........................................................................14 

Table 4.1: Details of Town Planning Schemes .....................................................................................19 

Table 4.2: Land Use 1991 and 2001 and Revised Master Plan Proposals............................................20 

Table 5.1: Details of Bore Wells...........................................................................................................24 

Table 5.2: Details of Storage Capacity .................................................................................................25 

Table 5.5: Details of Consumer Connections .......................................................................................26 

Table 5.6: Details of Performance Indicators for Water Supply...........................................................29 

Table 5.7: Details of Sanitation Facilities.............................................................................................30 

Table 5.8: Performance Indicators for Sanitation and Sewerage..........................................................30 

Table 5.9: Details of Drains ..................................................................................................................31 

Table 5.10: Details of Urinates .............................................................................................................31 

Table 5.11: Performance Indicators of Drains ......................................................................................32 

Table 5.12: Details of Generation of Municipal Waste ........................................................................33 

Table 5.13: Existing Fleet of Conservancy Vehicles............................................................................34 

Table 5.14: Performance Indicators for Solid Waste Management ......................................................35 

Table 5.15: Existing Details of Surfaced Roads ...................................................................................37 

Table 5.16: Performance Indicators for Roads .....................................................................................39 

Table 5.17: Characteristics of Municipal Roads...................................................................................39 

Table 5.18: Details of Luminaries.........................................................................................................42 

Table 5.19: Performance Indicators for Streetlights .............................................................................43 

Table 6.1: Summary of Municipal Fund...............................................................................................45 

Table 6.2: Sources of Revenue Income ................................................................................................46 

Table 6.3: Own Sources of Revenue Income........................................................................................47 

Table 6.4: Property Tax – Demand Collection and Balance Statement................................................48 

Table 6.5: Profession Tax – Demand Collection and Balance Statement.............................................48 

Table 6.6: Income from Assigned Revenue..........................................................................................49 

Table 6.7: Income from Revenue Grants ..............................................................................................50 

Table 6.8: Sector wise Revenue Expenditure .......................................................................................51 

Table 6.9: Sector wise Salary................................................................................................................52 

Table 6.10: Out standing Loan Statement.............................................................................................53 

Table 6.11: Revenue Account Status of Water Supply and Drainage Fund .........................................54 

Table 6.12: Water Charges – Demand Collection and Balance Statement...........................................55 

Table 6.13: Status of Capital Account - General ..................................................................................56 

Table 6.14: Status of Water Supply and Drainage Capital Account.....................................................57 

Table 6.15: Summary of Current Assets and Liabilities status.............................................................57 

Table 6.16: Key Financial Indicators....................................................................................................58 

Table 7.1: Existing Ward Wise Settlements of Slums ..........................................................................61 

Table 7.2: Existing Infrastructure Facilities..........................................................................................62 

Table 7.3: Performance Indicators for Slums .......................................................................................67 

Table 8.1: Goals and Service Outcomes – Water Supply .....................................................................70 

Table 8.2: Requirement until 2026 in Water Supply Sector .................................................................70 

Table 8.3: Goals and Service Outcomes - Sewerage ............................................................................71 

Table 8.4: Requirement until 2026 in Sewerage and Sanitation...........................................................72 

Table 8.5: Goals and Service Outcomes – Storm Water Drain and Water Bodies ...............................73 

v


Table 8.6: Requirement until 2026 in Storm Water Drains ..................................................................73 

Table 8.7: Goals and Service Outcomes – Solid Waste Management..................................................74 

Table 8.8: Details of Specification of Segregated Waste......................................................................74 

Table 8.9: Details of proposed primary collection system....................................................................76 

Table 8.10: Requirement until 2026 in Solid Waste Management .......................................................77 

Table 8.11: Goals and Service Outcomes –Roads, Traffic and Transportation....................................78 

Table 8.12: Requirement until 2026 in Roads and Traffic & Transportation.......................................79 

Table 8.13: Goals and Service Outcomes – Street Lighting .................................................................80 

Table 8.14: Requirement until 2026 in Street Lighting ........................................................................80 

Table 8.15: Goals and Service Outcomes – Poverty Alleviation..........................................................80 

Table 8.16: Details of Identified Investment in Water Supply Sector ..................................................82 

Table 8.17: Investments for Sewerage and Sanitation..........................................................................82 

Table 8.18: Investments for Drainage and Lake Development.............................................................83 

Table 8.19: Investments for Solid Waste Management ........................................................................83 

Table 8.20: Investments for Roads and Traffic Management...............................................................84 

Table 8.21: Investments for Street Lighting .........................................................................................84 

Table 8.22: The Investments for All Other Project...............................................................................85 

Table 9.1: Assets of Water Supply Details ...........................................................................................87 

Table 9.2: Details of Remunerative Assets...........................................................................................88 

Table 9.3: Details of Non-Remunerative Assets...................................................................................88 

Table 9.4: Details of Parks....................................................................................................................89 

Table 9.5: Details of Play Grounds.......................................................................................................89 

Table 10.1: Estimation of efficiency of pump ......................................................................................93 

Table 10.2: Estimation of net energy saving in pump house ................................................................94 

Table 10.3: Manpower deployment at pump house..............................................................................95 

Table 10.4: Saving in Solid Waste Management Sector towards Privatization....................................96 

Table 10.5: Expenditure trend in street lighting ...................................................................................97 

Table 10.6: Salient features of Retro fit tube lights ..............................................................................98 

Table 10.7: Comparison of conventional tube lights with retrofit lights ..............................................98 

Table 10.8: Assumption for calculating energy savings .......................................................................99 

Table 10.9: Energy savings in street lighting......................................................................................100 

Table 10.10: Additional Revenue Estimation from Remunerative Assets..........................................102 

Table 10.11: Estimated Parking Fee ...................................................................................................103 

Table 10.12: Estimation of Advertisement fee ...................................................................................105 

Table 10.13: Estimation of Conservancy Fee .....................................................................................105 

Table 10.14: Estimated additional revenue from expenditure control and resource mobilization......106 

Table 11.1: Sustainable Investment Phasing - Water Supply .............................................................107 

Table 11.2: Sustainable Investment Phasing - Sewerage and Sanitation............................................107 

Table 11.3: Sustainable Investment Phasing - Roads .........................................................................108 

Table 11.4: Sustainable Investment Phasing - Storm Water Drains and Natural Drains....................108 

Table 11.5: Sustainable Investment Phasing - Solid Waste Management ..........................................109 

Table 11.6: Sustainable Investment Phasing - Street Lighting ...........................................................109 

Table 11.7: Sustainable Investment Phasing - Commercial Complexes, Parks etc,. ..........................109 

Table 11.8: Component wise Sustainable Investments.......................................................................110 

Table 11.9: Key assumptions for forecasting income from Property Tax ..........................................112 

Table 11.10: Key assumptions for forecasting income from Water Charges .....................................112 

Table 11.11: Key assumptions for forecasting income from Sewerage Charges................................113 

Table 11.12: Key assumptions for forecasting income from Solid Waste conservancy fee...............113 

Table 11.13: Key growth rate assumptions for income from other own sources................................114 

Table 11.14: Key growth rate assumptions for income from assigned sources..................................114 

Table 11.15 Key growth rate assumptions for income from grants & contributions..........................115 

Table 11.16: Key growth rate assumptions for forecasting revenue expenditure...............................115 

Table 11.17: Key growth rate assumptions for forecasting water supply revenue expenditure .........116 

Table 11.18: Assumptions for O&M Expenditure..............................................................................116 

Table 11.19: Proposed Financing Pattern ...........................................................................................117 

vi


Table 11.20: Summary of estimated capital investment and phasing schedule..................................118 

Table 11.21: Summary of phased investment in full project investment scenario .............................119 

Table 11.22: Financing pattern for proposed projects ........................................................................120 

Table 11.23: One-time charges for water & sewerage connections....................................................120 

Table 11.24: Financial Operating Plan Results - Karaikudi Municipality..........................................124 

Table 11.25: Summary of Full Project Cash Flow..............................................................................125 

Table 11.26: Summary of base cost sustainable investment and phasing schedule............................127 

Table 11.27: Summary of sustainable project investment -base cost .................................................127 

Table 11.28: Summary of sustainable investment project cash flow..................................................128 

Figures 

Figure 1.1: Linkage and connectivity .....................................................................................................1 

Figure 1.2: Approach to Business Plan...................................................................................................1 

Figure 1.3: City Corporate Plan- The Process ........................................................................................2 

Figure 2.1: Population Growth Rate .......................................................................................................7 

Figure 2.6: Town Growth Trends .........................................................................................................13 

Figure 5.1: Head Works Location.........................................................................................................24 

Figure 5.2: Distribution Zones in Karaikudi.........................................................................................26 

Figure 6.1: Total Revenue Income and Expenditure Trend..................................................................44 

Figure 6.2: Total Capital Income and Expenditure Trend ....................................................................45 

Figure 6.3: Source of Income (2000 to 2004).......................................................................................46 

Figure 6.4: Property Tax Collection Performance ................................................................................47 

Figure 6.5: Items of Revenue Expenditure (2000 to 2004)...................................................................51 

Figure 6.6: Sector Wise Salary Composition (2000 to 2004) ...............................................................52 

Figure 6.7: Water & Drainage Account Expenditure Trend .................................................................54 

Figure 6.8: Water Charge Collection Performance...............................................................................55 

Figure 11.1: Full Project - Sector wise Investment.............................................................................122 

Maps 

Map 2.1: Administrative Boundaries (Wards) of Karaikudi...................................................................8 

Map 2.2: Ward wise Density Pattern of Karaikudi...............................................................................10 

Map 4.1: Existing Land Use .................................................................................................................21 

Map 4.2: Proposed Land Use................................................................................................................23 

Map 5.3: Existing Water Supply System in Karaikudi.........................................................................27 

Map 5.5: Solid Waste Management System in Karaikudi ....................................................................36 

Map 5.6: Road Network in Karaikudi...................................................................................................38 

Map 5.7: Traffic &Transportation Proposals for Karaikudi .................................................................40 

Map 7.1: Locations of Slums in Karaikudi...........................................................................................63 

Map 9.1: Municipal Assets in Karaikudi ..............................................................................................90 

vii

Appendices 


Appendix I: Ward Level Densities......................................................................................................133 

Appendix II: Population Projection……………………………………….........................................134 

Appendix III: Minutes of Stakeholder meeting held on 3 rd July 2006................................................136 

Appendix IV: Municipal Finances......................................................................................................137 

Appendix V: Short Term Projects Details ..........................................................................................138 

Appendix VI: Draft Memorandum of Agreement ..............................................................................139 

viii

A. Profile of Karaikudi 

I. BACKGROUND 


1. The town of Karaikudi has its 

origins from 1800 A.D 

around the oldest structure in 

the town, which is the Sri 

Koppudaiya Nayagi Amman 

Temple. Karaikudi is a home 

for the “Nagarathars” with 

the location of their ancestral 

Heritage Town 

village at Chettinadu. The 

H i T 

name Karaikudi was framed from thorny plants "Karai” and in an ancient literature this 

plant being referred as "Kareekudi". At present, the town is called Karaikudi. The areas of 

Muthupattinam, Meiyappan Ambalam Street and surrounding areas of Narayanan Chettiar 

Street has developed since 1940 and are characteristic of the heritage structures of the 

town. The development of the community based trade and prosperity led to the 

development of the core areas of old town. 

2. Town Administration: In the post independence period, the town has experienced growth 

in industrial activities (especially cotton and ginning) along with trading activities. 

Concentration of these activities mixed with residential developments has resulted in the 

further growth of the town. 

Figure 1.1: Linkage and connectivity 

NILGIRIS 

COIMBATORE 

NH.49 

THENI 

NH.47 

TIRUNELVELI 

KANNIYAKUMARI 

DHARMAPURI 

ERODE 

NAMAKKAL 

DINDIGUL GUL 

GUL 

MADURAI 

MADURAI 

VIRUDUNAGAR AR 

AR 

NH.7 

NH.7 

TUTICORIN 

SALEM 

KARUR 

NH.49 

NH.49 

NH.49 

PERAMBALUR 

VELLORE 

PUDUKKOTTAI 

NH.7A 

RAMANATHAPURAM 

RAMANATHAPURAM 

TIRUVANNAMALAI 

VILUPPURAM 

NH.45 

TIRUCHCHIRAPPALLI 

NH.7A 

NH.7A 

NH.4 

CUDDALORE 

THANJAVUR THIRUVARUR 

KANCHIPURAM 

NH.45 

NAGAPATTINAM 

TIRUVALLUR 

Sivaganga 

Sivaganga 

District 

District 

NH.5 

PONDICHERRY 

(PONDICHERRY) 

CHENNAI 

H.7 

NH.7 

NH.208 

Sivakasi 

Dindigul 

Madurai 

Virudunagar 

Karaikudi 

Devakkottai 

3. The old town is clearly distinguished by its smaller streets with winding patterns. In the 

past, the focus of activities was concentrated at Koppudiamman Kovil. One of the major 

milestones in the town’s growth was the establishment of Dr. Alagappa Chettiar Group of 

Institutions and Research centers on the eastern side of the town limits in the neighboring 

NH.49 

Melur 

Tiruppattur 

Trichy 

NH.210 

Sivaganga 

Manmadurai 

Pudukottai 

Tiruvadanai 

Thanjavur 

Ramanathapuram 

R 

Nagapattinam 

1


Sankarapuram Village. This is now a University, and has led to a number of housing 

layouts in the village area. The town has been growing towards eastern and northern side 

since then. These relatively new parts of the town can be distinguished from the Grid 

pattern of the roads executed by the different T.P.Schemes. Some of the major commercial 

areas are located on the important arterial links between the old town and the new town 

such as the College road, Sekkalai main road, new bus Stand, 100 ft road, Kandanoor road 

etc. 

4. Government of Tamilnadu (GoTN) has initiated to protect this Heritage town and 

indicated that the conservation should go beyond preservation and just development. In the 

City Corporate plan, the consultants are looking towards to preserve and protect the 

heritage monuments and special natural assets of the town 

1. Objectives of the study 

5. The main objective for the City Corporate Plan was emphasizes on issues of priority local 

concerns for livability, and the implied requirements in terms of 

(i) Enhancing City Productivity 

(ii) Reducing Poverty 

(iii) Improving Management 

(iv) Enhancing Financial Sustainability 

6. The objective of the assignment is to formulate a Business Plan comprising of appropriate 

policies and actions that are practically implementable to accomplish the objectives of the 

CCP. 

2. Scope of Work 

7. The scope of services for converting CCP to Business Plan broadly covers the following 

areas. 

(i) Financial Assessment of Urban Local Bodies; 

(ii) Assess Levels of service, coverage and quality of municipal services in both poor 

and non-poor localities; 

(iii) Outline issues in revenue realizations, quality of existing assets in relation to service 

levels and coverage, and institutional constraints; 

(iv) Prepare a Financial and Operating Plan (FOP); 

(v) Indicate and assess areas for expenditure reduction, revenue mobilization and 

management; 

(vi) Prepare a draft Memorandum of Understanding between Urban Local Body and 

TNUIFSL for effective implementation and monitoring of the Business Plan; 

(vii) Initiate consultations with council and local stakeholders on the priorities; 

(viii) Finalize Business Action Plan for the City, with a resolution from the council on the 

priorities and commitment to implement revenue and management improvement 

measures; 

(ix) Identify the obligations on the part of the ULB/TNUIFSL/TNUDF/Government for 

successful implementation of the Business Plan; 

2

B. City Corporate cum Business Plan 


8. The corporate plan is a strategic plan, which sets out in detail the policy and investment 

options. The plan sets out baseline for the performance of the municipality, its priorities 

and aims for future. The Business plan is the tool to implement comprising of projects and 

reforms to be under taken by the ULB. In addition, the Business Plan would formulate 

strength for additional resource mobilization to enhance the credit worthiness of the ULB. 

1. City Corporate cum Business planning Approach 

9. The approach of the Corporate Plan cum Business Plan is iterative in nature and is 

presented in Figure 1.2 

10. For the formulation of the City Corporate Plan cum Business Plan, the future vision of the 

city was developed through a participatory approach, initiated in July 2002. Public 

Consultations were conducted at the town level with the Municipal Councilors, officials, 

and line agencies and identified stakeholders. 

2. Source of Data 

11. A varied list of organisations apart from Karaikudi municipality were consulted for putting 

together the data presented in the report and used for analysis by the consultants through 

the City Corporate cum Business Plan preparation process. 

12. The census data for the town is made available by the directorate of Census operations 

Tamilnadu. Institutions and organisations like DTCP, DIC, TWAD board, IMA, Local 

NGOs, Alagappa University, Private organisations etc have provided the necessary data 

for the respective services. 

13. The municipality has provided the necessary data with respect to infrastructure at the ward 

level. This was instrumental in preparation of the Business plan, which includes Capital 

Investment program for the municipality and prioritizing the needs at the local level. 

3

Figure 1.2: Approach to Business Plan 

Situation Analysis 

Legal / Systems 

Municipal Acts 

Taxation Powers 

Borrowing Provisions 

Budgeting Systems 

Accounting Practices 

Finances 

Sources & Uses of funds 

Base and basis of levy of 

major taxes and charges 

Collection issues 

Uses 

Rate of growth 

Per-capita Analysis 

Services 

Current levels of services 

Water supply 

Sanitation 

Roads 

Solid Waste Management 

Drainage 

Lighting 

Traffic & Transportation 

City Strategic Plan 

Shared long-term vision 

City Corporate Plan 

ULBs’ commitment to citizens 

City Business 

Plan 

Capital Investment 

Need & Prioritization 

Capital 

Investment Plan 

Project Identification & facility 

Siting 

• Sectoral Strategies 

• Integration of Line Agency 

Projects 

• Public Priorities 


Rates of growth 

Revenue revision assumptions 

Collection performance 

Expenditure growth Assumptions 

Expenditure Management 

Revenue Enhancement Measures 

Assumption on O & M for new 

investments 

Lending options 

Loan grant mix 

Loan terms 

Financial and Operating 

Plan 

Sustainable 

Investment 

Project Pipeline 

Implementation Strategy 

Management Strategy 

1

Figure 1.3: City Corporate Plan- The Process 

Agenda for the Future 

Sectoral Strategies 

Master Plan 

Water Supply Augmentation Plan 

Sewerage Master Plan 

Storm Water Master Plan 

Comprehensive Traffic & Transport 

Study 

Annual Progress Report 

Plan Review 

• Annual Report and Assessment 

of Progress 

• Identification of Shortcomings 

• Areas of focus for forthcoming 

Corporate Plan 

Strategic Planning, Existing 

Situation Review & Defining City 

Vision and Goals 

• Review of current service delivery levels 

from the citizens’ perspective through 

consultation between councillors and 

technical staff of municipality 

• Agenda Note Preparation on Visions and 

Goals of the Corporate Plan in Consultation 

with Planning Partners 

• Review of State and Local Organisations/ 

Institutional Operations in Service Delivery 

Corporate Plan Amendments 

Final Corporate Plan for Implementation 

Plan Monitoring and Evaluation 

• Review of Sustainability Indicators 

• Identification of Key Areas of 

deficiencies 

• Redressal of issues and accounted for 

Draft Corporate Plan 

City Vision and Goals 

Draft Plan Formulation and 

Identification of Capital 

Improvement Program 

• Address issues and identify 

future requirement within Plan 

Period 

• Identify Tasks to address 

strategies formulated to cater to 

future requirement 

• Identify Institutions involved in 

performing tasks 

• Define sustainability indicators 

to Monitor and Evaluate the Plan 

Corporate Plan 

Draft for Public Consultation 

Public Consultation, Plan 

Approval and Finalization 

Critical Review and Approval of Plan 

by Citizen Groups/ Public 

Representatives, Elected Councillors 

and Planning Partners 


2

C. Vision for Karaikudi Town 


14. The vision for the town is to achieve improved service levels and better quality of life for 

the citizens to make Karaikudi as Heritage and Knowledge town. Specific goals and 

service outcomes have been framed in Table 1.1 below. 

Table 1.1: Goals and Service Outcomes 

Sr. No Goal 2011 2016 2026 

A. Water Supply 

1 Network cover for 

general households 

100% 100% 100% 

2 Network cover for Slum 

100% 100% 100% 

households 

3 Per Capita Supply 90 lpcd 130 lpcd 

4 Hours of supply 24 hours / daily 

5 Un accounted water 20% 15% 12% 

6 O&M Cost Recovery 100% 100% 100% 

7 Collection Efficiency 100 % 100 % 100 % 

8 Customer Satisfaction Good Good Good 

B. Sewerage 

1 Coverage (Access) 100% 100% 100% 

2 Treatment and Disposal 100% 100% 100% 

3 Recycling and Reuse 25% 40% 50% 


C. Storm Water Drain and Water Bodies 

Macro Drainage 

1 Flood Alleviation and 


100% 

Recommendation 

Micro Drainage 

1 With in the Town 

(Preparation and 

Implementation Plans) 

D. Solid Waste Management 

1 Collection with in the 

Town 

2 Door to Door Collection - 

% 

100% 100% 100% 

100% 100% 100% 

100% 100% 100% 

3 Source Segregation - % 75% 100% 100% 

4 Collection - % 90% 100% 100% 

5 Scientific Disposal 80% 100% 100% 

6 Waste to Energy 

Generation 

50% 100% 

7 Cost Recovery of O & M 

50% 75% 100% 

-% 

8 Private Sector 

Participation 

E. Traffic and Transportation 

1 Road Network as % of 

Total Area 

100 % Primary 

Collection by 

Privatization 

Complete in the 

Disposal 

Complete in 

the Disposal 

12% 15% 15% 

4


Sr. No Goal 2011 2016 2026 

2 Average Speed -km/’h 

with in the town 

20 30 35 

3 Sidewalks length to Total Half of the 75% of the 95% of the 

road length 

requirement requirement requirement 

4 Road accidents Reduced by Reduced by Reduced by 

25% 

50% 

70% 

Roads Coverage 

1 

Safety 

Municipality 80% 100% 100% 

1 

Parking 

To reduce traffic 

accidents by traffic 

management measures 

With in the Town 

100% 100% 100% 

1 Construction of parking 

complexes at proposed 

locations 

100% 100% 100% 

Decongestion 

1 Development of Outer 

Ring Road 

100% 

F. Street Lighting 

1 Energy saving 

mechanisms 

80% 100% 100% 

2 Adequate lighting in Nonlit 

areas 

80% 100% 100% 

G. Poverty Alleviation 

1 Network Coverage for 

slum households 

90% 95% 100% 

2 UGD coverage for slum 

households 

60% 100% 100% 

3 Adequately lit slums 100% 100% 100% 

4 Adequate road link for 

the slums 

100% 100% 100% 

5 Pucca houses for all slum 

households 

80% 100% 100% 

6 Education for all in slums 100% 100% 100% 

D. Report Structure 

15. This report is the Draft Final Report and comprises of following structure: 

(i) Project Brief and Scope of work. The current section detailing the project 

objective and the Scope of work of the project. Approach to the City Corporate 

Plan. The vision and the goals are framed with time frame; 

(ii) Chapter 2 gives the Profile of the ULB and in terms of its demographic 

characteristics, past trends and growth, population projections and future trends; 

(iii) Chapter 3 deals with urban management, the institutions involved, structure of 

ULB -its political and executive wings. The chapter also outlines the reform 

agenda currently undertaken by the Municipality 

(iv) Chapter 4 elaborates planning and land use management and its growth directions 

5


of the town; 

(v) Chapter 5 detailed on existing situation of infrastructure services, coverage, gaps, 

and issues confronting the same; 

(vi) Chapter 6 presents the fiscal situation of the Karaikudi Municipality 

(vii) Chapter 7 deals with urban poverty including slums, demographic and socioeconomic 

characteristics, availability of infrastructure services and gaps in the 

provision and delivery of services. Housing for urban poor is also discussed in 

this chapter. 

(viii) Chapter 8 describes vision and sectoral strategies for the different infrastructure, 

facilities for the town along with the proposed interventions and costing for each 

of the sector. 

(ix) Chapter 9 will deal with the elements that are essential in an asset management 

program for movable and immovable infrastructure. More specifically road 

networks, sidewalks, water supply networks, pumping, storage, treatment facilities 

and storm water drains. 

(x) Chapter 10 deals with revenue generation through the non-traditional sources with 

minimum investment s and the enormous scope to control expenditure. 

(xi) Chapter 11 describes Capital Investment Plan and Financial Operating Plan and 

sustainability of the proposed interventions including the suggested reforms to 

enhance the municipal revenues. 

(xii) Chapter 12 outlines the various best practices world over regarding good urban 

governance. The strategies presented in this chapter, are an integrated whole and 

none of them can be seen are understood in an isolated section. 

6

II. CITY DEMOGRAPHY 


16. Linkage & Transportation: Karaikudi is situated towards north of Sivagangai district and 

is about 90 Km from Trichy and and 450 Km from Chennai respectively. It is well 

connected by rail and road transport. NH 210, SH 28 and SH 35 passes through the town. 

While NH 210 connects Trichy and Rameswaram, SH 28 & 35 connects Tanjavur, 

Sayalkudi and Dindigul with Karaikudi. Karaikudi is a junction on the southeast Railway 

division. The meter gauge line connecting Trichy, Manamadurai and Rameswaram pass 

through the town. 

17. Physical & Geographical Character: The terrain of Karaikudi is predominantly flat. 

Rocky areas are found in the surrounding areas of Karaikudi town and intensity of rocks is 

more towards western side of the town. The rocks are of ancient crystalline type. Clay 

deposits in the form of calcareous nodules and limestone are also found in the nearby 

areas. The soil is hard red laterite and is not suitable for cultivation. There is no physical 

restraint to developments except the railway line, which skirts the town at its eastern 

periphery. 

18. Climate & Rainfall: The summers are quite hot with temperatures of around 370 C. The 

climate is pleasant during the monsoon while the autumns are temperate. The winters are 

not very cold but the temperatures in January are around 220 C. The level of ground water 

table in most of the places within the town varies in summer to non-summer seasons 

between 6 and 3 feet respectively. The annual average rainfall in Karaikudi is 913.6 mm 

and the total rainfall for the year 2001 is 1096.4 mm. 

B. Population Trends and Urbanization 

Figure 2.1: Population Growth Rate 

19. Karaikudi is a selection grade 100000 

municipality with an area of 

13.75 Sq. km consisting of 36 

90000 

80000 

70000 

wards. The town population 

60000 

in 2001 was 86,596. The 

50000 

40000 

decadal growth rates had 

30000 

shown a gradually increasing 

trend until the year 1971 and 

then decreased from 1981 

20000 

10000 

0 

until it reached a very low value of 7.42 percent in 1991. This reduction can be attributed 

to the out migration, which is also reflected in the reduction in primary and secondary 

workforce in 1991. In 2001, Karaikudi has shown a growth of about 20.33 percent. This 

growth rate is due to increase in the educational facilities around the town and town 

experienced with inward migration. The decadal population growth rate is presented in 

Table 2.1. The population growth curve is shown in Figure 2.1 

Population 

1951 1961 1971 1981 1991 2001 

7

Map 2.1: Administrative Boundaries (Wards) of Karaikudi 


8


Table 2.1: Municipal Population and Decadal Growth Rate 

Year Population Decadal Growth Rate 

( %)- 

1901 11,801 

1911 14,648 24.13 

1921 15,350 4.79 

1931 21,672 41.19 

1941 28,908 33.39 

1951 38,453 33.02 

1961 43,698 13.64 

1971 55,449 26.89 

1981 66,993 20.82 

1991 71,965 7.42 

2001 86,596 20.33 

Source: Census of India. 

1. Density Pattern 

20. The town had a population density of 4,594 persons per Sq. km in 1971, which increased 

to 6,285 persons per Sq. km in 2001. The town has 36 administrative wards presented in 

(Map 2.1) and mainly the transport corridors, namely NH 210 and State Highway 28 & 

35, guide the density pattern of the town. Table 2.2 gives the town level density. 

Table 2.2: Town Level Density 

Year Area Population Density 

Sq. Km Per/ Sq. Km 

1971 12.07 55,449 4,594 

1981 13.75 66,993 4,970 

1991 13.75 71,965 5,339 

2001 13.75 86,422 6,285 

Source: Analysis 

21. There are three wards (5, 18, and 27) where density is more than 20,000 persons per Sq 

km and house significant slum population. Wards on the south and northeast (1, 9, 12, 17, 

19, 34, 35, and 36) have low density at less than 5000 persons per sq. km. Ward level 

density is presented in Appendix I. The density pattern (2001) is presented in Table 2.3 

and Map: 2.2 

Table 2.3: Ward Wise Density Pattern - 2001 

Sl No. Ward Number Density 

Per/ Sq. Km 

1 5, 18, 27 >20,000 

2 34, 15, 25, 33 15,001 – 20,000 

3 7, 13, 14, 16, 30, 29, 32, 28, 20 10,001 – 15,000 

4 24, 23, 22, 21, 26, 31, 8, 2, 11, 10, 6 5,001 – 10,000 

5 1, 12, 9,19,17, 34, 35, 36

Map 2.2: Ward wise Density Pattern of Karaikudi 


10

C. Economic Development 


22. Karaikudi acts as a major growth center for all the rural areas as well the other areas of 

surrounding Chettinadu region. Over the years, Karaikudi has developed mainly along NH 

210 leading to Trichy, as seen from the developments on Sekkalai road, which proceeds to 

Devakottai in the south. 

1. Sectoral Growth 

23. There are no major industrial activities in the town except for the research institute of 

Central Electro-Chemical Research Institute, Karaikudi (CECRI) and Alagappa 

University, which are located out side the municipal boundaries. Most of the units located 

in Karaikudi are small-scale industries like engineering works, handlooms, wood works, 

etc. 

24. As per the 2001 census, the work force constitutes 33 percent of the town population. 

During the period 1971 to 1991, there is a major shift in occupation pattern from tertiary 

sector to secondary sector. This trend reversed in the following decade 1991 to 2001. At 

present majority of the people are engaged in tertiary sector in Karaikudi. The 

occupational details is presented in Table 2.4 

Table 2.4: Occupational Details 

Sector 

Number of Persons 

1971 1981 1991 2001 

Primary sector 1,079 757 936 420 

Secondary Sector 5,097 2,308 6,463 2,127 

Tertiary Sector 10,059 16,939 14,231 26,239 

Total Work Force 

Source: Census 

16,235 20,004 21,630 28,786 

2. Industrial Development 

25. The textile sector provided for the setting up of small scale weaving units in the town. 

This has however declined and has almost come to a standstill due to the large-scale 

mechanization of the textile industry in the neighboring region of Madurai. However, the 

economy of the town is primarily dependent on the trade and commerce related activities. 

There is no major industrial development in and around Karaikudi. There is a 

predominance of small-scale industries with an average of four members employed per 

industry. 

3. Health 

26. There is a government hospital, 4 maternity centers and 16 private clinics in Karaikudi 

town. While considering the existing population and size of the town, the available 

facilities are grossly inadequate. Table 2.5 provides the details of hospitals and 

dispensaries. 

11


Table 2.5: Health Facilities in Local Body 

Type Numbers Doctors Beds 

Government Hospital 1 12 120 

Maternity Homes 4 1 12 

Health Centers 1 - - 

Dispensaries 16 22 129 

Source: Karaikudi Municipality 

27. Apart from the government hospital and maternity homes, there is one health center and a 

dispensary, run by the Government. There are four doctors each for the maternity home 

and the dispensary. There are 12 beds in the maternity home apart from those in the 

Government Hospital. There are 22 doctors and 129 beds with the private hospitals. 

4. Education 

28. The town has three different categories of educational facilities. There are four middle 

level schools, twenty elementary schools and one Deaf and Dumb School. Higher 

educational facilities include Engineering College and Polytechnic College etc. Alagappa 

Chettiyar University is the prime institution of repute just outside the municipal limits. 

Apart from these, there are colleges, which are either affiliated or self-financed and 

imparting education to students at college and graduation level. The town has elementary 

to post graduation education facilities. The details of education centers are illustrated in 

Table 2.6. 

Table 2.6: Education Facilities in Local Body 

Type of Schools Numbers 

Middle Schools (by education department) 4 

Elementary Schools (by education department) 20 

Deaf and Dumb School 1 

High School 1 

Higher Secondary School 3 

Professional college 1 

Private University 1 


12

E. Growth Trends and Projections 

1. Growth Trends and Projections 

29. Some of the areas that are experiencing growth are 

those areas just outside the town towards Madurai 

with limited commercial activities. Although 

Karaikudi Town served as an important economic 

center for the nearby villages, it was solely 

dependent on regional economic centers of 

Madurai, Trichy etc for employment. Thus, it has a 

role of a transit town for goods and services due to 

its linkages to major economic centers of Madurai, 

Trichy, Virudunagar, etc. 


Figure 2.6: Town Growth Trends 

30. Thus, the emerging economic investments the town can make will be solely in terms of 

strengthening its current role as a supplier of commercial goods and services. Some of 

them can be well-planned commercial centers located in the transit-oriented locations of 

the town. In addition, efforts are on going to place Karaikudi as tourist destination and 

focal point for Chettinad heritage. Hence, the future towards economy would depend on 

tourism related activities. 

2. Population Projection 

31. The following methods are employed to project the Population. 

(i) Arithmetic Increase Method 

(ii) Incremental Increase Method 

(iii) Geometric Increase Method 

(iv) Graphical Methods (Exponential, Polynomial 2nd Order, Power Method and Log 

Method)) 

32. By using the above methods, future population has been projected for the Present (2006), 

Intermediate (2021, 2026) and Ultimate Stage (2036) and furnished in Table 2.7 

13

Table 2.7: Population Projection by Various Methods 


Forecasting Method Present 

Projected Population 

Intermediate Intermediate Ultimate Remarks 

(2006) (2021) (2026) (2036) 

Arithmetic Method 91,410 1,05,853 1,10,668 1,20,296 Moderate 

Geometric Method 93,389 1,17,136 1,26,325 1,46,922 High 

Incremental Increase 

Method 

Graphical Methods 

92,290 1,12,893 1,20,933 1,38,775 Reasonable 

Polynomial Second 

Order 

91,569 1,09,994 1,16,490 1,30,013 Moderate 

Exponential Method 95,220 1,21,796 1,32,210 1,55,788 Very High 

Power Method 82,740 90,912 93,447 98,282 Low 

Log Method 80,600 85,976 87,546 90,426 Very Low 


33. Considering the growth trends, the future growth would witness an increase in growth rate 

during the next decade. To assess the future growth of population, a variety of methods 

were employed, the details of population projection calculation are enclosed in Appendix 

II 

34. Projections by Incremental Increase are considered appropriate for the municipality. The 

projected population figures for the years 2011, 2021 and 2026 for the municipality by 

this method are 95,290, 112,893, and 120,933 persons respectively. Based on the 

population projection above, the demands and gaps are calculated. 

14

A. Institutions and Capacity 

III. URBAN MANAGEMENT 

1. Institutional Arrangements and Policy Context 


35. Institutional Arrangements. The State Government’s line departments continue to play a 

crucial role in urban basic service delivery. Sectors and agency involvement include: 

(i) Water Supply & Sewerage. The Tamil Nadu Water Supply and Drainage Board 

(TWAD) are responsible for creation of water and sewerage infrastructure in the 

state. However, Municipality is responsible for the provision and delivery of 

services within the town. 

(ii) Master Plan. The Town and Country Planning Department (TCPD) prepares the 

Master Plan and Comprehensive Development Plan (CDP) for the town, and the 

mandate of implementing the Master Plan /CDP lies with the ULB – growth is 

generally haphazard and unplanned, the CDP is rarely referred to. However, with a 

vision to achieve planned growth, revision of CDP is in progress. 

(iii) Roads and Highways. Highways and Rural Works maintain the National and State 

Highways that pass through the town. Municipal roads are maintained by the ULB. 

(iv) Environmental Protection. The Tamil Nadu Pollution Control Board (TNPCB) is 

responsible for environmental protection and enforcement of rulings related to the 

same, passed by competent authorities. 

(v) Slum Up gradation. The Tamil Nadu Slum Clearance Board (TNSCB) develops 

improvement schemes for notified/regularized slum settlements in the town. 

Infrastructure provision is financed partly through loans from the Housing and 

Development Corporation (HUDCo) and partly through grants from GoTN and GoI. 

36. In addition to involvement of various institutions in the development of local-level 

infrastructure, the Municipal Administration & Water Supply Department controls locallevel 

governance through the Commissionerate of Municipal Administration (CMA). 

37. Policy Framework. The Tamil Nadu District Municipalities Act, 1920, governs Karaikudi 

Municipality. The municipality is classified as a selection grade municipality Amendment 

to the Corporation Act (1971) and Amendment to the Municipalities Act (1920), provides 

impetus for environment improvement through Rain Water Harvesting 

15

2. Service Delivery and Performance of Urban Local Body 


38. The engineering department is responsible for all public works, and maintenance of civic 

facilities. This department is responsible for the following works: 

(i) Public Works (Construction and maintenance of roads and storm water drains, 

(ii) Maintenance of school buildings, 

(iii) Construction and Maintenance of Public Conveniences, 

(iv) Maintenance of other facilities viz., Bus stand, Markets, etc. 

(v) Street Lighting (Maintenance of Street Lights) 

(vi) Water Supply and Sewerage (Provision and operation and maintenance of water 

supply and sewerage system) 

(vii) Parks and Gardens (Maintenance of parks and gardens). 

B. Organization Structure of Urban Local Body 

39. In 1928, Karaikudi was a grade III municipality and in the post independence period was 

subsequently upgraded to grade II municipality. Later the state Government declared it as 

grade I municipality in 1973 and in 1988; the town achieved the status of a selection grade 

municipality. The master plan for Karaikudi town was prepared by the Karaikudi Local 

Planning Authority and the Directorate of Town & Country Planning Authority- 

Sivagangai prepared the master plan for Karaikudi town and was approved in 1984. The 

structure of the municipality consists of two wings i.e., the deliberative wing and the 

executive wing. 

1. Administrative Wing 

40. The Municipal Council, the political arm of the municipality consists of 36 elected 

councilors, each representing a ward. The Chairperson (elected from among the 

councilors) heads the municipal council, which performs its duties as per the provisions of 

the district municipalities Act. The political wing provides an overall direction to the 

Municipality and performs its functions through a set of committees constituted for 

different purposes. 

2 Executive Wing 

41. The Executive Wing is responsible for day-to-day operations of the Municipality, and is 

headed by the Municipal Commissioner. The Commissioner is the administrative head of 

the Municipality and is supported by different departments in the operations. The 

organizational structure of the Municipality comprises of five functional Departments. 

42. The Karaikudi municipality of executive wing is responsible for day to day operations, and 

is headed by the municipal commissioner. The commissioner is the administrative head of 

the municipality and is supported mainly by five departments in the operations. The 

organizational structure of the municipality comprises of five functional departments. 

16


43. The municipality consists of a head that reports to the commissioner and functions as per 

the responsibilities prescribed in the Act and as delegated by the municipal commissioner. 

The function of clerical staff dealing under each department/ section of the Municipality is 

coded for the sake of work allocation and standardization. 

44. Various departments under the ULB share the responsibility of service delivery within the 

Corporation. The functions of various officials/departments, under the Administrative 

wing, are elucidated hereunder: 

(i) Commissioner. The Commissioner is at the apex of this structure and is responsible 

for all activities carried out by the ULB. The Commissioner is responsible for 

preparation and certification of all periodical records, returns and furnishes all 

information as may from time to time be required by the Municipal Council or the 

Standing committees. He is also responsible for preparation of accounts. At each 

general meeting, the Commissioner along with some other key officials, discuss 

various issues with the elected representatives. 

(ii) General Administration Department. The department is headed by the 

Commissioner and assisted by Assistant Commissioner (Personnel), Administrative 

officers, Public relation officer, Superintendent and other officers. This department 

is responsible for establishment, other essential matters relating to office, officers, 

staff and their welfare like preparation of staff pay bills, maintenance of registers for 

advances, GPF, pension, PF’s etc. 

(iii) Engineering and Water Supply Department. The Municipal Engineer heads the 

engineering department, and is assisted by Assistant Engineer, Junior Engineer and 

other staff. With regards to fieldwork, Scheme works are delegated to one Junior 

Engineer who also looks after regular works, related to Public Works, Drains, Street 

Lighting. The Assistant Engineer looks after the water supply and is assisted by 

electrician, operators and other staff. The Department is responsible for ensuring the 

quality and quantity of water supply to the municipality. A major function of the 

Municipality is formulation and execution of Works- like construction and 

maintenance of roads, buildings and other infrastructure systems. 

(iv) Revenue and Accounts Department. The department is headed by Revenue 

Inspector and assisted by junior assistant. The Accounts Section is responsible for 

supervising all financial transactions related to the ULB, advising the Revenue 

Officers on all internal financial matters, updating financial receipts and expenditure 

details in accordance with the utilization of funds, reporting deviations in 

expenditure of funds in any of the allocated schemes, assisting preparation of the 

ULB budget, maintenance of accounts regarding stamp duty, SFC Grants, MP 

Grants, maintenance of petty cash book and general cash book and attending to audit 

requirements and other such accounts-related duties. Revenue Officer, heading the 

Revenue Section, is responsible for collecting taxes such as, trade tax, house tax, 

advertisement tax, and entertainment tax; development charges; transfer of 

properties collection of duty; issuing notices for recovery of tax; and monitoring 

revenue collections of the ULB. 

17


(v) Public Health Department. The department is headed by Sanitary Officer, and is 

responsible for ULB services such as Solid waste management, public health related 

works like malaria control, family planning, mother and child health care, birth and 

death registration etc, and other government assisted programs related to health and 

poverty reduction and awareness programs. The Sanitary Officer assisted by the 

Sanitary Inspectors and Sanitary Worker Supervisors, is responsible for services of 

Solid waste management and Malaria Control activities. Sanitary Worker 

Supervisors are in-charge of works execution at the field level, which includes 

monitoring and supervising the work of sanitary laborers in the wards under their 

charge and attending to specific local complaints. Besides, this department is 

responsible for the enforcement of the Public Health Act. The Public Health 

Department is vested with the responsibility of ensuring safe sanitation and 

cleanliness of the town. The department is also responsible for the maintenance of 

Municipal Dispensaries, Burial Grounds and slaughterhouses. One of the most 

crucial services of the municipality is maintenance of sanitation and cleanliness in 

the town. This involves mainly conservancy works involving sweeping of roads, 

garbage collection and disposal, cleaning of drains, and disinfecting of drains. 

Private contract was awarded for Solid Waste Management in certain areas of the 

town. Markets areas and main roads are cleaned every day 

(vi) Town Planning Department. A town-planning officer heads this department, assisted 

by building inspectors, surveyors and junior assistants and other staff. The major 

function of this department is issue of building license, preparation and 

implementation of development plans and eviction of encroachments, urban 

planning and building regulation. The Town-Planning Department’s main function 

is to implement the master plan proposals, ensure orderly growth in the town and 

avoid unauthorized constructions and to formulate projects. 

18

A. Planning Efforts in the Past 

1. Master Plan Outline 

IV. PLANNING & LAND USE MANAGEMENT 


45. The Master Plan was prepared for the Karaikudi Municipality in 1977 and was approved 

only in 1984. The main difference from the existing situations in 1991 to 2001 is the 

increase in residential area from 38.84 percent to 44.73 percent and commercial from 2.47 

percent to 2.98 percent. 

46. The growing population and the subsequent demand for basic services has stressed the 

need for expanding the area of the town and a revised proposal for 2026 is under 

preparation by the Directorate of Town and Country Planning, Sivagangai. While the 

commercial and residential areas have increased in the master plan proposals for 2011 and 

2021, there are otherwise no major changes in land use of existing and proposed land use. 

2. Master Plan Implementation and Implications 

47. Karaikudi had eight Town planning schemes prepared for planned development of the 

town. An extent of 10.48 sq km, out of 13.75 sq km of the total town area has been 

brought under development control under Madras Town Planning Act 1920. Much of 

these planned areas are to the north and northeast of the town. The details of Town 

Planning Schemes are presented in Table 4.1. 

Table 4.1: Details of Town Planning Schemes 

Town Planning Scheme Area 

Acres 

Kalanivasal Extension Town Planning Scheme part-I 126.0 

Kalanivasal Extension Town Planning Scheme part-II 197.0 

Meenakshipuram Town Planning Scheme 286.1 

Sanjai Extension Town Planning Scheme 179.0 

Nanaganathapuram Perumal Kovil Extension Town Planning Scheme Part –I 215.0 

Naganathapuram Perumal Koil Extension Town Planning Scheme Part II 265.0 

Railway Station Area Town planning Scheme part I 659.7 

Railway Station Area Town planning Scheme part II 475.4 


B. Land Use Management 

1. Land Use Pattern – Current and Future 

48. The proposed Karaikudi local planning area coincides with the municipal area and extends 

over an area of 13.75 Sq. km. The existing land use of 2001 and the proposals of 2011 and 

19


2021 (which are yet to be sanctioned) in the town has anticipated the area under different 

land uses, which is briefly discussed below. The details of land use for 1991 and 2001 and 

Revised Master Plan Proposals are presented in the Table 4.2 Figure 4.1, 4.2 &4.3 

Table 4.2: Land Use 1991 and 2001 and Revised Master Plan Proposals 

Land Use 

Area Distribution 

Sq. km % 

1991 2001 2011 2021 1991 2001 2011 2021 

Existing Proposed Existing Proposed 

Residential 5.34 6.15 6.62 7.52 38.84 44.73 48.22 54.62 

Commercial 0.34 0.41 0.5 0.6 2.47 2.98 3.64 4.36 

Industrial 0.11 0.11 0.11 0.11 0.8 0.8 0.8 0.8 

Education 0.11 0.11 0.11 0.11 0.8 0.8 0.8 0.8 

Public and Semi- 

Public 

0.16 0.16 0.16 0.16 1.16 1.16 1.16 1.16 

Transportation (Roads 

and Rail) 

1.67 1.67 1.67 1.67 12.17 12.17 12.17 12.17 

Water Bodies 1.39 1.39 1.39 1.39 10.11 10.11 10.11 10.11 

Agricultural Wet 0.69 0.69 0.69 0.69 5.05 5.05 5.05 5.05 

Dry land +Vacant area 3.94 3.05 2.5 1.5 28.63 22.16 18.16 10.89 

Sub Total 

(Developed Area) 

9.12 10.00 10.56 11.56 66.3 72.8 76.8 84.07 

Sub Total 

(Undeveloped Area) 

4.63 3.75 3.19 2.19 33.7 27.2 23.2 15.93 

Total 13.75 13.75 13.75 13.75 100.00 100.00 100.00 100.00 

Source: Karaikudi Municipality. 

49. Residential. In 1991, residential areas constitute about 38.84 percent of the total area and it 

is increased to 44.73 percent in the 2001 land use plan. There are organized developments 

towards north and northeastern parts and form part of the town planning scheme area. For 

the proposals of 2011 and 2021, which, are yet to be sanctioned, the figures are 48.22 and 

54.62 percent respectively. 

50. Commercial. Major Commercial activities are concentrated in the old town and towards 

main transport corridors. Anna daily market and weekly market are also situated at core 

area of the town. The commercial area in the town has increased over the decade from 

0.34 sq. Km to 0.41 Sq. Km (3 percent of the total area of the town). Major commercial 

activities like wholesale and retail business of textiles, handlooms, furniture shops 

automobile spares, repair shops etc. is located along the main roads. For the proposals of 

2011 and 2021, the figures are 3.6 percent and 4.3 percent respectively anticipating an 

increase in commercial activities to serve the nearby areas also. 

51. Industrial. At present, the area under industrial use is around 0.1 Sq. Km that is about 0.8 

percent of the total area of the town. This is contributed by the small scale industrial 

activities (power looms, utensils cottage industries etc) scattered in entire town. For the 

proposals of 2011 and 2021, the industrial use is proposed to remain stagnant at 0.8 

percent, but these figures are likely to change during the sanctioning process. 

20

Map 4.1: Existing Land Use 


21


52. Education. Karaikudi is one of the major institutional towns in Tamilnadu. Even though 

the Alagappa University is out side the municipal boundary it influences the town largely. 

There are at present Polytechnics, one Engineering and Graduation and Post Graduation 

College, three higher secondary schools and 20 elementary schools in the town. 

Educational land use was 0.8 percent both in 1991 and in 2001. For the proposals of 2011 

and 2021, the proposed figures remain at 0.8 percent. 

53. Public and Semi-public. The major Public and Semi-public activities in the town are 

scattered across the entire town. The land for the public and Semi-public use in the 2001year 

was around 1.13 percent of the total area of the town. For the proposals of 2011 and 

2021, the proposed figures remain at 1.13 percent as in the existing plan. 

54. Undeveloped areas. Most of vacant lands in the town are located towards north and 

northeast of the town between the already developed areas within and outside the town 

limits. Further, the Agricultural lands to the south of the town are also developing into 

residential areas. While there were 2.09 Sq. Km. of agricultural lands and water bodies in 

2001, the same is proposed for 2011 and 2021. 

55. Water bodies. Water bodies in the town account for almost 10.11 percent of the total area 

of the town. There are 13 water tanks and Athala Kanmoi, Karaikudi Kanmaoi, 

Vannankulam, Veerian Kanmoi, Nattar Kanmoi, Kodikalcan Kanmoi existing, and in 

which temple tanks (Uranis) are protected with side walls. 

2. Development Patterns – Growth Areas and Direction 

56. While the present area of the town is not fully developed, the future growth patterns are 

clearly directed towards the North and Western areas outside the municipal limits. The 

National highway and the State highways leading to Madurai and Trichy bound these 

areas. The eastern side of the town boundary follows the railway line. The municipal 

boundary follows railway line and other side of the railway line (out side municipal 

boundary) is developing slowly. The proposal prepared by Karaikudi municipality has 

taken note of these developments and plans to include them into the municipal limits. 

57. There was a proposal in 1991 to include the Sankarapuram town panchayat, which is 

adjacent to municipal boundary towards Madurai road. The main reason is to Protect 

Sambai Oothu water source from developments happening around the source. The 

municipality got the stay order from the court in this regard. After this incident, there is no 

further development, including new areas in municipal boundary. 

C. Key Developmental Issues 

(i) Lack of coordination between the implementing agencies. 

(ii) Unauthorized developments and layout in peripheral areas. 

(iii) Lack of technical expertise and manpower at the municipal level. 

(iv) Lacking efforts towards updating the changes in land use and revision of the 

master plan according to the changing and developing scenario of the town. 

22

Map 4.2: Proposed Land Use 


23

A. Physical Infrastructure 

1. Water Supply 

V. INFRASTRUCTURE SERVICES 

58. The Tamil Nadu Water and Drainage board 

executed the present water supply scheme of 

Karaikudi in 1975 and at present, the 

municipality maintains it. The installed 

capacity is 9.2 MLD, of which the quantity 

being extracted and supplied is 7.5 MLD. Of 

the total 21,102 properties assessed in the 

town, 43 percent of the properties have house 

service connections. There are four water 

supply zones in Karaikudi town. 


Figure 5.1: Head Works Location 

Kallukatti 

OHT 

12"CI 

59. Source: - The main source of water supply to 

Karaikudi town is Sambai Oothu, the 

8"CI 

groundwater artesian spring located outside the 

8 

municipal limits on the Madurai road. The 

7 

Pump 

Room 

head works at the source is 4.31 Km away 

from the town limits. There are nine deep bore 

wells near the head works from which water is extracted into the sump at the head works 

of capacity 2 lakh liters. This water is pumped by two centrifugal pumps with capacities of 

75 HP and 60 HP into the feeder mains of 12.74-Km length reaching the service 

reservoirs. Source location is shown in Figure 5.1 

60. About total 29 bore wells are fitted with pumps supplies water to entire town. Of these 29 

bore wells, nine wells are part of the head works at Sambai Oothu on Madurai Road. 

Water is continuously extracted by the nine bore wells at head works. Water extracted 

from bore wells at Athalapatti and Servar Urani is linked to the sump at the head works. 

Water from the sump at head works is pumped to the four service reservoirs (combined 

storage capacity of 3.4 ML). The details of bore wells are illustrated in Table: 5.1 

Table 5.1: Details of Bore Wells 

Location of bore wells 2002-03 2005-06 

Head works 1 6 9 

Others (with in the town) 12 20 


1 

Decrease in yield, in recent three years municipality put additional two bores around the source spring 

to meet the present demand 

18"CI 

Head 

14 

Middle 

Level 13 

10 

9 

11 

12 

Kallukatti 

Zone 

6"Ac 

16 

15 

17 

Middle Level 

OHT 

6"Ac 

10"CI 

Low Level 

OHT 

High Level Oht 

Low Level 

Zone 

High Level Zone 

24


61. Yield and Reliability. The average yield from the nine bore wells at head works is about 

7.5 MLD those serving the piped supply in the town. The water from all the wells is 

potable since the source is the aquifers of Sambai Oothu and hence no treatment is 

enhanced. With regards to the other 20 bore wells located with in the town, they act as 

localized sources and the water is supplied directly to the distribution network. The hydro 

geological studies conform that all the sources have long-term reliability. 

62. Treatment facility: - Since water is drawn from a ground water source, an artesian spring, 

which has recorded negligible pollutants, pre-chlorination is the only type of treatment 

done before water is pumped into the elevated storage reservoirs. However, with 

developments in and around the source, there has been an increasing threat to by sewerage 

and sullage Sambai Oothu from contamination. 

63. Storage Capacity: - At the head works there is one sump with a storage capacity of 3.2 

ML into which water is pumped continuously throughout the day. The service reservoirs 

are supplied water from this sump. There are four service reservoirs (OHTs) in the town 

with a total storage capacity of 3.4 ML. There is additional service reservoir located in 

Subramanyapuram, which is under construction with storage capacity of 0.4 ML. The 

elevated storage capacity works out to be 50.67 percent of total water supply. The details 

of storage capacity of tanks are listed in Table 5.2 

Table 5.2: Details of Storage Capacity 

Location Capacity 2005-06 

ML 

Sekkalai Urani High Level Tank 0.15 

Maharnonbupottal Low level Tank 1.50 

Sathappa Park Middle Level Tank 1.50 

Kallukatti Tank 0.25 

Subramanyapuram 0.40 

Total 3.80 

Source: Karaikudi Municipality. 

64. Feeder main Distribution Network: - The water is pumped and conveyed by CI pipes 

ranging from 6 to 12 inches diameter size to the service reservoirs located in the town. 

Water is pumped from the sump at the head works located near Madurai Road, bore wells 

on Devakottai Rastha and bore well near O. Siruvayal. The total length of the feeder mains 

is 12.74 Km. Two centrifugal pumps of 60 HP and 75 HP is used to pump water to the 

service reservoirs. The existing distribution network and reservoirs are presented in Figure 

5.3. 

65. Distribution Network: - There are 9,353 house service connections in the own connected 

by a distribution network of about 85.29-km. The town is divided into four water supply 

zones, High Level, Middle Level, Low Level and Kallukatti zones covering about 75 

percent of the total area of the town. One overhead tank is located in each of zone and 

water is supplied daily for 2 to 2.5 hours. The areas still not covered are in the east of the 

town near Railway station, Saudaminipuram etc and the areas to the extreme north 

(Kalanivasal) and south (Kodikattanpatti) of the town. The distribution zones are presented 

in Figure 5.2 

25

14 

Figure 5.2: Distribution Zones in Karaikudi 

Middle 

Level Zone 

18"CI 

10 

Head Works 

9 

7 

11 

13 

8 

Pump 

Room 

12 

Kallukatti 

OHT 

12"CI 

Kallukatti 

Zone 

6"Ac 

8"CI 

16 

15 

17 

Middle Level 

OHT 

6"Ac 

10"CI 

Low Level 

OHT 

High Level Oht 

Low Level 

Zone 

Un-served Area 

High Level Zone 

Un-served Area 

Bore Wells 


1,2,3,4,5, 6, 7, 8, 9,- Head Works 

10, 11 - Devakottai Rasta 

9, 10 - Servar Urani 

11 - Athalapatti 

12 - Parappu Urani 

13 - Nadar Kudiyuruppu 

14 - ‘O’ Siruvayal 

15 - Kalanivasal Pudu Road 

16 - Kalanivasal Kottaiyar Road 

17 - Pattaiamman Kovil Street 

18 - Slaughter House 

66. House Service Connections: - There are 9,353 house service connections all of them 

metered. However, meters are not functioning and hence flat rates are charged. Domestic 

connections account for 97 percent of the connections while the rest account for the 

commercial connections. The monthly house service connections are charged at Rs. 41/- 

for domestic connections and Rs. 81/- for non-domestic, commercial and Rs. 121/- for 

industrial. One time connection fee of Rs. 2000/-, Rs. 3000/- and Rs. 5000/- are collected 

for new domestic, commercial and industrial connections respectively. The annual house 

service connection rates have grown at 3.4 percent. The details of water supply 

connections are illustrated in Table 5.5 

Table 5.5: Details of Consumer Connections 

Head 2002-03 2005-06 Percentage to total 

Domestic 8,633 9,102 97.30 

Non – domestic 237 251 2.70 

Industrial - - - 

Total Metered 8,870 9,353 100.00 


67. There are 348 public fountains in the town of which 56 are in slums. The population 

covered by these public fountains is 20,094. Apart from these, there are 592 hand pumps 

and 5 open wells in the town. 

26

Map 5.3: Existing Water Supply System in Karaikudi 


27


68. System Coverage and Adequacy: - The average gross per capita supply is 73.38 lpcd as per 

the 2005 projected population. Against 21,102 Property Tax Assessments in the 

municipality during 2005 – 06, there are 9,353 service connections (9,102 domestic 

connections). The service coverage is only 43 percent with respect to P.T. Assessments. 

69. Low Pressure areas: - Low pressure is experienced in areas mostly in the tail end areas of 

distribution network such as Muththupattinam I st Street, Muththupattinam II nd Street, III rd 

Street and Gandhipuram Area, Meenakshipuram, Kalanivasal Area, V.O.C Road, 

Kattuthalaivasal, Jeeva Nagar and Paruppu Urani. Due to inappropriate sizing of pipes and 

being away from Over Head Tank, these areas have been experiencing low pressure. Ward 

level public Consultations were held to assess the extent of low pressure from which it was 

understood that leakages are prevalent in certain areas like Indira Nagar, and Samynada 

mainly due to faulty and aged valves. 

70. The capacity/ demand ratio in high level zone is 0.15 against a requirement of 0.33, i.e., 

requirement of additional storage of at least 3 lakh liters to cater to the present population 

and 4 Lakh liter capacities for the future population. Karaikudi Municipality has 

accordingly proposed (Roc. No. E2/4355/03 Dated: 10-02-2004) an additional Over Head 

Tank and received administrative sanction from the O/o Commissioner of Municipal 

Administration during March/ April 2004 for construction of one Over Head Tank of 4 

Lakh liter capacity at Subramaniapuram. 

71. Karaikudi Municipality indicated the system losses range from 20 percent to 25 percent. It 

is to be noted that, the ability to identify sources and the amount of loss is constrained 

because the system lack network maps and consumer databases are inadequate or not 

available. 

72. Water losses are due to leakages from old, damaged, corroded pipe lines/ connections and 

leaking joints, theft, illegal tapping of water unregistered connections, faulty meters and 

unrecorded supply due to poor records and billing errors. 

73. There is a need for Leak Detection Study and implement the recommended options, for the 

program to yield results, it is also necessary to have sufficient and reliable database 

regarding the water supply systems. A good information base, willingness to follow-up on 

systematic replacement of leaking pipes, defective meters and connections as well as tariff 

revisions, etc are critical to the success of the program. Control on Unaccounted for Water 

(UFW) and loss minimization can be achieved through prevention of illegal tapping, water 

metering, education and information management, promotion of water conserving 

household appliances etc. 

74. Key issues/indicators are based on review and discussions and data analysis presented in 

Table 5.6 below. 

28


Table 5.6: Details of Performance Indicators for Water Supply 

Indicator Current Situation Benchmark 

Per Capita Supply 73.33 lpcd 90.0 lpcd 

T & D losses/ Total Supply 20 % 10 % 

Supply Frequency Daily Daily 

Distribution Network Reach (% of Road Length) 53.14 % 85 % 

Elevated Storage capacity/ Total supply 50.67 % 33 % 

% of P.T. Assessments with House Service Connections 42.90 % 100 % 


(i) The town lacks proper distribution network and there is a requirement to have more 

storage at distribution level. This will also reduce longer and inefficient networks 

with low pressure; 

(ii) Low service coverage i.e. only 42.90 percent with respect to P.T. Assessments. The 

number of properties assessed stands at 82.09 percent of the households; 

(iii) A large number of leaks, faulty and aged valves; 

(iv) Reduced pressure in supply due to inappropriate sizing of pipes and distances from 

Over Head Tank; 

(v) Probable threat of pollution and contamination to the aquifers of Sambai Oothu. 

Ongoing / Recently completed Projects. 

75. Ongoing and Proposed Sub-Projects. Various improvement works were proposed under 

this scheme prepared by Karaikudi Municipality during 2001-02. However, the proposals 

are rather towards addressing the immediate issues and catering to the intermediate 

demand only. The proposals include: 

(i) Provision of distribution network for un-served areas of the town. Newly 

developed areas of Bus Stand, Subramanyapuram, Saudaminipuram and some 

other areas of city to be extended with water supply distribution network. 

(ii) Replacement of existing corroded & damaged pumping and distribution mains 

(iii) Replacement of Motors. 

(iv) Sinking of 4 new deep bore wells with pump room. 

(v) Two service reservoirs each having 4.0-lakh-liter capacity in Subramaniapuram 

near Arya Bhavan and on Senjai ground. 

(vi) However, to achieve long term sustenance in the provision and delivery of water 

supply system for Karaikudi Municipality, the strategies and capital improvement 

programs is designed to meet the ultimate demand for the year 2026. 

2. Sewerage and Sanitation 

Existing situation 

76. There is no under ground drainage system in Karaikudi. The safe disposal system 

comprises of the individual facilities like septic tanks, low cast sanitation units, and liquid 

waste (sullage and kitchen waste) is let in to the open drains. 

77. The main mode of individual disposal in the town is through septic tanks, low cost 

29


sanitation units and through public conveniences. About 76.64 percent of total assessments 

are having septic tanks as safe disposal system and 11.2 percent of the population has low 

cost sanitation units as disposal mode. The existing details of sanitation facilities are listed 

in Table 5.7 

Table 5.7: Details of Sanitation Facilities 

Description 2002-03 2005-06 

No. of Septic Tanks 12,112 13,826 

No. of Low Cost Sanitation Units 3,752 2,347 

No. of Units (ISP) 66 66 

No. of Units (Others) 72 72 


78. An estimated 60,000 population in the town uses about 13,826 septic tanks as safe disposal 

mode. About 17,000 population depends on low cost sanitation units and public toilets. 

The local body has provided public conveniences in the town and their total capacity is 

138 seats. There are 66 units under ISP. Slum population per seat of the public 

convenience in Karaikudi is 192 persons. The Municipality has recently embarked onto 

the provision of Integrated Sanitation Complex units each with 16 seats through the 

Integrated Sanitary Program (ISP), funded by World Bank through TNUDP II. 

79. About 76.6 percent of the property tax assessments have safe disposal facility served by 

septic tanks. However, the numbers of properties assessed in the municipality itself being 

low, the actual coverage is much lower. 

Service Adequacy and Key Issues. 

80. Key issues/indicators are based on review and discussions and data analysis presented in 

Table 5.8. 

Table 5.8: Performance Indicators for Sanitation and Sewerage 


% P.T. Assessment Covered with Septic tanks 65.52 % 90.0 % 

% P.T. Assessment Covered with Low cost sanitation 11.12 % 10.0 % 

% P.T. Assessment Covered with Safe Disposal 

facility-Total 


76.6 % 100.0 % 

(i) Absence of adequate safe disposal facilities led to disposal of sullage and night soil 

into drains/ nallahs and tanks in the town. 

(ii) The shallow ground water aquifer, which is the only source of ground water, is 

highly susceptible to pollution from the open flowing sewerage and sullage in the 

surrounding tanks and nallahs. 

3. Storm Water Drainage and Rejuvenation of Water Bodies 

81. Existing Situation:- The city has an effective network of storm water drains running to a 

length of approximately 137.90-km. This is 89.02 percent of the total road length in the 

town. Predominately Karaikudi has a flat terrain with potable water bodies in and around 

30


the town. The existing natural drains (Odai’s) are between these water bodies. Most of the 

road network in the town has storm water drains on either side of the roads. These drains 

discharge storm water into the lakes (Urani’s/ Kanmoi’s) in the low-lying areas. The 

length of the pucca and kutcha open drains is 138 2 km. Most of the existing kutcha drains 

were converted into pucca drains during the last three years coupled with construction of 

new Pucca drains. The drains carry the wastewater in addition to the storm water 

generated during the monsoon, thus polluting the water bodies making them unsafe for 

potential use. The existing details of drains are listed in Table 5.9 

Table 5.9: Details of Drains 

Tertiary Drain Type Length - 2002-03 Length 2005-06 Total length 

Km Km % 

Open Drains- Pucca 49.20 70.70 51.3 

Open Drains- Kutcha 67.20 67.20 48.7 

Total 116.00 137.90 100.0 


82. Some of Karaikudi’s major water bodies are located towards the west of Sekkalai road. A 

gentle slope exists towards this side of about 1:250 and most of the primary drains of 

Karaikudi let into these water bodies. 

83. Most of Karaikudi’s primary drain flows (13.81 Km) from east to west meeting the major 

water bodies like the Athala Kanmoi, Adi Dravidar Kanmoi, Nattar Urnai, Veerayan 

Kanmoi etc. They also carry with them some quantity of the town’s sullage and sewage. 

The absence of proper sewerage system has led to the degradation of these natural drains 

as well the water bodies. The details of natural water bodies are illustrated in Table 5.10 

and location of water bodies are presented in Figure: 5.3 

Table 5.10: Details of Urinates 

Name of Water Body Area in Ha Name of Water Body Area in Ha 

Puthu Kanmoi 3.15 Servav Urani 17.52 

Konneri Kanmoi 2.30 Kuppadiamman Koil 8.77 

Ayyanaar Kovil Urani 1.10 VannanKulam 0.3 

Kalanivasal Vadakku Urani 0.16 Keela Urani 8.81 

Manakkadu Kanmoi 2.88 Adidravida Koil Urani 65.34 

Chellan Chetti Urani 2.08 Perumal Koil Urani 4.36 

Retta Arasu 1.28 Senjai Urani 13.07 

Athala Kanmoi 37.17 Nattar Urani 56.63 

Edachiammal Urani 1.60 Kodikattan Kanmoi 69.69 

Parrippu Urani 1.43 Veeran Kanmoi 204.73 

Sekkalai Urani 17.58 Pappa Urani 8.71 

Karaikkudi Kanmoi 52.05 Kudikattan Pattil Kanmoi 30.49 

(Railway) 

Vaithi Urani 24.18 Kudikattan Kanmoi 143.79 

Muthth Urani 0.08 


84. From the field visits and public consultation, the following areas require strengthening of 

2 Additional length of 22 km was added within last two years (2003-2006). 

31


primary drains viz., North Urani Street, Pillayar Coodam Street, Alagappan Street, 

Pugazendhi Street, Marudhuapandiar Street, Sekkalai Thiyagarajan Chettiyar street, 

Arunachalam Chettiyar street, Pillayar Koil Street, Swaminathan Achari Street, Srinivasan 

Street, North lane 1,2,3, Middle lane, South lane etc,. 

85. Most of the flood prone areas are those near the water bodies in the low lying areas 

towards south. Some of the areas that face regular flooding problems are Vadakku Urani 

and Idaichi Urani areas of ward 1, Sekkalai water tank and near Ambedkar statue, Pillayar 

Kovil Urani of ward 7, Senjai Urani, Nattar Kanmoi areas of ward 35. 


86. Key issues/indicators are based on review, discussions, and data analysis presented in 

Table 5.11 below. 

87. At 89.02 percent of the total road length, the storm water drains cover the entire town 

effectively though not adequately. The system is effective for the fact that Pucca open 

drains cover most of the areas. 

88. Wards 34, 33, 32, 23, 24, 26, 11, 10, 6, 12, 17, 15, 31, 13, 4, 27, 29 and 46 present a good 

coverage of above 150 percent of the road length. The rest of the wards need to improve 

the system through construction of new drains over the next five years. The priority would 

be for wards 9, 7, 28, 35, 1, 5, 25, 30, 19, 21 and 22 where the coverage very less. These 

wards need to take up up-gradation of the existing kutcha drains to pucca type apart from 

new formations as and when new roads are laid. 

Table 5.11: Performance Indicators of Drains 


Storm Drain network/ Total Road Length 89.02 % > 150.0 % 

% Pucca Drains 51.03 % 100.0 % 

% Kutcha Drains 48.70 % 100.0 % 


(i) Large amounts of domestic sewage flow into the storm water drains polluting the 

Urani's/ Odai's. In addition, the storm water drains and natural drainage channels 

are susceptible to uncontrolled garbage dumping resulting in blockage and 

stagnation. 

(ii) Silting, disposal of construction waste, solid waste dumping and encroachments on 

the banks of Odai and Urani’s are interrupting the smooth flow of storm water. 

(iii) All the water bodies and the tanks in the town had connecting flowing channels 

which have either got encroached upon or choked over the years of negligence and 

no maintenance. 

32

4. Solid Waste Management 


89. Existing situation:-Efforts to improve the solid waste management in the town were made 

by the health department. The town is divided into 8 zones and the waste generated is 

collected and disposed at the site located on Devakottai road in an area of 13.70 acres. The 

site is about 5 km from the town. The total quantity of solid waste generated in the town is 

41.51 tons per day and around 30 tons of the waste generated per day is collected with a 

collection efficiency of 72 percent as per the estimates of the municipality. The detail of 

municipal waste generation is illustrated in Table 5.12. 

Table 5.12: Details of Generation of Municipal Waste 

Type Quantity 2002-03 Percentage Quantity 2005-06 Percentage 

Tons Tons 

Domestic 12.57 36.4 16.52 39.8 

Commercial 4.32 12.5 5.32 12.8 

Industrial 3.82 11.1 3.81 9.2 

Markets 2.29 6.6 4.29 10.3 

Street Sweeping 10.00 28.9 10.00 24.1 

Drain Cleaning 12.57 4.2 1.44 3.5 

Hospital Waste 0.13 0.4 0.13 0.3 

Total 34.57 100.00 41.57 100.00 

Source: Karaikudi Municipality & Analysis 

90. Per capita waste generation in Karaikudi is 461 grams/day and is on the higher side for a 

town of similar size. Solid waste generated in Karaikudi is mainly organic in nature. The 

other major components being inert material mixed with paper and plastic. Apart from 

these, bio-medical waste also mixes with the domestic solid waste generated by the city. 

91. Domestic, Commercial and Markets: - Domestic waste per household varies from area to 

area in the town and on an average, ranges between 250 to 500 gram. About 16.52 tons of 

domestic waste is generated per day. The commercial waste includes the waste from hotels 

and eating establishments, shops, small time street traders, etc. There is one daily market 

and one weekly market run by the municipality. The daily waste generated by these 

markets is roughly around 4.29 tons. Market waste, generally organic in nature is planned 

to use for composting. 

92. Industrial: - About 3.81 tons of industrial waste per day is generated mainly from the 

looms and household industries in the town. Out of this only 9.2 percent of the total waste 

generated. The waste mainly consists of cloth, plastic carry bags, paper bags, glass bottles 

etc. 

93. Bio-medical waste: Bio Medical Waste of about 0.13 T is generated everyday. They 

consist of recyclable types of bottles etc as well as non-recyclable types of tissues, 

dressing left-outs, needles etc. These are from the private hospitals, nursing homes, 

medical Laboratories etc. At present, a separate area is being planned at the compost yard 

to handle this waste through incineration plant to be provided by the support of the Indian 

Medical Association and Local Medical Practitioners Association. 

33


94. Primary Collection & Street Sweeping: Door to Door collection has been implemented in 

all 36 wards. Privatization of solid waste collection has been implemented in 7 wards and 

18 important streets, which is entrusted with collection of about 25 percent of the total 

waste generated in the town. The municipality handles another 70 percent of the waste 

collection through door-to-door collection process. The municipal health workers collects 

wastes from the doorstep use 100 handcarts with compartments with total capacity of 0.1 

T. These tricycles cover the entire population of the town. The system of primary 

collection followed is cleaning, sweeping, scrapping and collection of MSW by tri-cycle/ 

handcarts and transfer to secondary collection points. In the other wards where door-todoor 

collection is yet to be introduced, waste is collected from the community dustbins. 

95. Secondary Collection: - The municipality has 5 sanitary inspectors, 9 sanitary supervisors, 

and field assistants under the supervision of the Municipal Health Officer to monitor the 

solid waste management system in the town. At present there are 215 workers engaged in 

collection of waste across the eight zones of the town. The approximate road length per 

sanitary worker in the town works out to be 720 meter. Waste collected through primary 

collection is transported from the secondary collection points to the disposal site. The fleet 

of vehicles available for the purpose includes trucks, tractors and mini trucks as presented 

in Table 5.13 and the solid waste management system is presented in Figure: 5.5 

Table 5.13: Existing Fleet of Conservancy Vehicles 

Type of vehicle Owned/Rented Number of Capacity Total Age 

Vehicle 

trips 

Tones Years 

Tractors Rented 2 2.5 4 - 

Mini Trucks Owned 2 2.5 3 10 

Trucks Owned 1 3 3 11 

Tipper Owned 1 3 3 11 

Push carts Owned 100 0.1 3 


96. The frequency of transportation of waste from various waste collection points is once a 

day and the total capacity of the fleet is 18 T. The total rated capacity of the vehicles with 

the municipality is about 29.4 percent of the waste generated in the town. Assuming a bulk 

density of 0.35 3 , and an average of 3 trips per vehicle per day, the actual vehicle carrying 

capacity with the municipality is only 21 percent of the waste generated, which is very 

low. The municipality has hired two private vehicles (tractors) to augment the existing 

fleet and to overcome the shortage in transportation capacity of waste to the disposal site. 

97. About 13.7 acres of land is available for treatment and disposal of waste. The disposal site 

is about 5 km. from the town. At present, no scientific method of disposal is followed. The 

area available is sufficient to meet the disposal requirement till 2026. 

98. Keeping in view the increasing waste generation in the town, the disposal site is divided 

into two parts. One part is used for bio-medical waste and another for organic and 

inorganic waste processing. In case of Bio-medical waste, the municipality is adopting the 

3 The solid waste management studies conducted in several towns of Tamilnadu (Palani, Mamallapuram, 

Kodaikanal, Rameswaram, Erode etc have put the density factor for un-compacted waste at an average 

of 0.18 – 0.2. When compacted the same is observed to be in the range of 0.35 -0.4. 

34


practice of deep burrowing, but plans are being considered for an incinerating the waste. 

99. At present private sector is involved in the transportation of solid waste to the disposal 

site. The main roads in the core areas of the town including New Bus Stand to Periyar 

Statue, Rajai Bus Stand to Sekkalai road junction are currently vested with the private 

sector. 


100. The collection performance and vehicle capacity adequacy ratio indicates the need to 

increase the numbers of vehicles. The other alternative is privatization of garbage 

transport. Key issues/indicators are based on review, discussions, and data analysis 

presented in Table 5.14 below. 

Table 5.14: Performance Indicators for Solid Waste Management 


Per-Capita Generation 461 gm < 350 gm 

Collection Performance (% Collected to generated) 70.8 % 100.0 % 

% Rated vehicle capacity to total waste generated 21.9 % >= 40 % 


(i) The vehicle capacity adequacy is considerably less and hence, the municipality has 

adopted alternate day collection, which in turn reduces the collection efficiency. 

(ii) Scientific methods are not followed to dispose the waste 

35

Map 5.5: Solid Waste Management System in Karaikudi 


36

5. Roads and Traffic Management 


101. Existing Situation:- The older part of the town developed around the Koppudiamman 

Kovil has narrow roads. The new areas of the town developed radially around the old areas 

have grid-iron pattern of roads. These areas are close to the new bus stand. Karaikudi is 

well connected by both National and State high ways and around 11.03 Km of road length 

within the town is part of the highways (NH and SH). 

102. The density of the roads in the town is about 11.27 km per sq. km of the town area. 

Average width of the roads in the town is at 5.5 m average carriageway of 3.1 meter. 

103. Total road length in the town is 154.90 Km, of which 11.03 km are NH & SH. The total 

length of municipal roads is about 144 km of which 100.50 km is BT surfaced and 7.64 

km by cement concrete roads. Cut-stone slab roads constitute a meagre 0.44 km length and 

are found largely in slums.The details of existing surfaced roads are listed in Table 5.15 

and road network presented in Figure 5.6 

Table 5.15: Existing Details of Surfaced Roads 

Surface type Length (2002-03) Length (2005-06) 

Km % Km % 

Cement Concrete 7.64 5.3 7.64 5.3 

BT/Tar 95.56 66.9 100.50 69.9 

WBM 28.69 20.1 26.94 18.7 

Cut Stone Slab 0.44 0.3 0.44 0.3 

Gravel & Earthen 10.55 7.4 8.35 5.8 

Total 142.88 100.00 143.87 100.00 


104. The roads cover around 6 percent of the total area of town. The town has been effectively 

connected through a total length of 143.87 km of road network. 

105. The NH 210 runs across the town from the north to south leading to Devakottai and 

Rameswaram in the South and Trichy in the north. The state highway branches out to the 

west of the NH 210 connecting Madurai, Tanjavur and Dindigul. 

106. BT roads constitute 69.9 percent and cement concrete roads constitute 5.3 percent. It is 

observed that in several areas, the road surface is badly damaged due to heavy vehicle 

traffic plying on these roads mainly the NH cutting right through the north-south length of 

the town. Around 25 percent of existing black toped roads to be rehabilitated with seal 

coat. 

37

Map 5.6: Road Network in Karaikudi 


38


107. Service Adequacy. The per capita road length in the town is 1.78 m, which is above the 

considered norm of 1.75 m. However, it is observed that certain peripheral wards are 

devoid of good connectivity attributed to the large extents of water bodies in these wards. 

In addition, the high per-capita road length can be attributed to grid pattern of road 

network in the town. The surface condition of the roads needs improvement and there is a 

need to provide surfacing to a large extent of earthen and gravel roads. Hence, the wards 

deficient in coverage needs new formations, and those wards deficient in road widths 

needs widening and the others needs specific improvements. Key issues/indicators are 

based on review, discussions, and data analysis presented in Table 5.16 below. 

Table 5.16: Performance Indicators for Roads 


Road Density 11.67 Km/ Sq. km 10.0 – 15.0 Km/ Sq. km 

Per capita Road Length 1.78 m 1.75 m 

% CC Roads to Total Road Length 5.3 % 5.0 % 

% Municipal Surfaced Roads 94.2 % 100.0 % 


6. Traffic and Transportation. 

108. Exiting Situation:- The travel pattern in the town is guided by the road network and land 

use pattern in the town. The concentration of commercial and trading activities at the 

center of the town coupled with the radial pattern of the roads make a large number of 

trips to originate and end at the Periyar statue intersection. The road pattern also makes a 

lot of through traffic to pass through the town. All the regional traffic pass through the 

center of the town owing to the non-availability of any ring roads/ bye-pass roads. 

109. The urban roads in the town are characterized by mixed traffic conditions resulting in 

complex interaction between various kinds of vehicles. The characteristic details of 

municipal roads are presented in Table 5.17. 

Table 5.17: Characteristics of Municipal Roads 

Name of the road Length Width of Capacity Peak Volume/ 

Carriage 

hour capacity 

Way 

ratio 

Km m PCUs PCUs 

Madurai Road 0.60 7.0 1,200 1,091 0.91 

Sekkalai Road 1.74 6.2 1,063 1,021 0.96 

V.O.C Road 2.22 6.2 1,063 786 0.74 

Mela Urani Road 0.48 3.6 617 382 0.62 

Kallukatti N Road 0.12 10.0 1,714 753 0.44 


39

Map 5.7: Traffic &Transportation Proposals for Karaikudi 


40


110. The V/C ratio is found minimum on Kallukatti East road at 0.27 while the maximum value 

of 0.96 was on Sekkalai road. The width of these major roads varies from 3.6m to 10m. 

The peak hour volume ranges from 341 PCUs in Devakkottai road to 1091 PCUs on 

Madurai road. 

111. Intersections: - There are four important junctions in the town where major roads like the 

State Highways and National Highways meet. These are: 

(i) Periyar statue intersection 

(ii) Second Beat intersection 

(iii) First Beat intersection 

(iv) Kallukatti Intersection 

112. While the Periyar statue junction is a 5 arm junction and other three junctions are four arm 

junctions. In case of Periyar junction, meandering alignment has made the junction a 

bottleneck for the smooth flow. 

113. The construction beyond the culvert at second beat junction is a severe bottleneck to traffic 

flow. At the first beat intersection, encroachments have lessened the width of the roads. In 

case of Kallukati intersection, the road geometrics need to be revised to improve visibility. 

The traffic and transportation proposals are presented in Figure: 5.7. 

114. Parking Facilities. There are no specific parking provisions made by the municipality in 

the town for orderly and regulated parking of vehicles along the major roads. Parking of 

vehicles on Madurai road from old bus stand to second beat has become a major hindrance 

to the through traffic. In addition, a large number of auto rickshaws and taxies are 

generally parked opposite to old bus stand. 

115. For the purpose of improving the parking facilities in the town, regularization drive would 

be the first step required concentrating on Madurai road from old bus stand to second beat. 

For the stretch between First Beat and Second Beat the parking of taxis on the northern 

side street may be allowed to continue and facilities need to be improved for orderly 

parking. The open spaces available beyond the canal bund on the southern side of the 

Madurai road may be developed as on-street parking lots. 

116. Public transport system in the town is catered to by private service operators through minibuses 

between various localities in and around the town. There are about 10 to 15 such 

mini buses plying within the municipal limits. 

Key Issues 

(i) The main issue is not just the connectivity in the peripheral wards but also the 

requirement of good surfaced roads. Also within the other wards of the town, 

considerable lengths of roads need to be surfaced. 

(ii) Encroachments and informal activities on major corridors of the town create 

congestion, especially in the old town area. The margins of the road and the 

41


footpaths are encroached in several sections by small time street vendors, illegal 

parking and other informal activities. 

(iii) Heavy traffic movements and frequent congestion is seen on Madurai road, Sekkalai 

road and Kallukatti East road. 

(iv) Absence of raised footpaths and pedestrian crossing facilities on busy routes. 

(v) Haphazard on street parking of vehicles on Madurai road from old bus stand to 

second beat junction. 

(vi) Most of the roads in Karaikudi town are functioning as one-way streets. 

(vii) During night time the visibility is poor on most of the roads and at several junctions. 

(viii) Lack of segregated roads creates absolute confusion and hazardous traffic 

movements. 

7. Street lighting 

117. Existing Situation. The municipality maintains around 3,839 streetlights with an average 

spacing between each lamppost of 42m, which is considerably high. Around 93 percent of 

the luminaries in the town are tube lights. High power lamps in the town constitute 7.43 

percent of the total number. These include sodium vapour lamps and mercury lamps. The 

existing details of luminaries are listed in Table 5.18. 

Table 5.18: Details of Luminaries 

Type of Luminary Number (2002-03) Number (2005-06) 

% % 

High Mast Lamps 1 0.03 1 0.03 

Mercury Vapour Lamps 72 1.88 82 2.14 

Sodium Vapour Lamps 200 5.23 202 5.23 

Tube Lights 3,554 92.87 3,554 92.58 

Total 3,827 100.00 3,839 100.00 


118. Service Adequacy and Key Issues. Except for wards 34, 25, 18, 1, 4 and 8 all the other 

wards have the street lights spaced at a distance more than the accepted average norm of a 

minimum of 30m. In wards 5, 32, 7 and 16 the average spacing is below 40m. Wards 11, 

24, 14, 2 and 28 are the worse off in terms of streetlight spacing with the range above 

110m. Considering that these wards are also some of the peripheral wards, the actual 

spacing between the light poles would be much higher than 150m. The details of 

performance indicators for streetlights are furnished in Table 5.19. 

42


Table 5.19: Performance Indicators for Streetlights 


Spacing between Lamp Posts 40.35 m. 30.0 m. 

% Tube Lights 93 % 70.0 – 80.0 % 

% High Power Lamps 8% 20.0 – 30.0 % 


(i) The street lights are spaced at an average of about 40.35m against an acceptable 

30m and this is prevalent in 30 out of the 36 wards 

43

VI. FINANCES OF KARAIKUDI MUNICIPALITY 

A. Municipal Financial Management 

1. Municipal Fund 

Amount in Rs. Lakh 

800.00 

700.00 

600.00 

500.00 

400.00 

300.00 

200.00 

100.00 

Total Revenue Income & Expenditure Trend 


119. Overview. Karaikudi Municipality maintains a municipal fund for managing the finances 

of the Municipality. The accounts of the municipal fund were maintained on a cash based 

single entry system till the FY 1999-2000. The financial status of the Municipality has 

been reviewed for the past four years, commencing from the financial year 2000-01. This 

section contains a description of the municipal finances, the sources and uses of funds, and 

an assessment of municipal finances based on important financial indicators. Currently the 

urban local bodies of Tamilnadu maintain three separate funds, namely General Fund 

(Revenue Fund), Water & Drainage Fund and Education Fund. For the purpose of this 

analysis, Education fund has clubbed in to General fund. For further analysis, the items of 

each fund are categorized under the following major heads. 

120. Revenue Account: All recurring items of income and expenditure are included under this 

head. These include taxes, charges, salaries, maintenance expenditure, debt servicing etc. 

121. Capital Account: Income and expenditure items under this account are primarily nonrecurring 

in nature. Income items include loans, contributions by GoTN, other agencies 

and capital grants under various State and Central Government programs, revenue account 

transfer for capital works and income from sale of assets. Expenditure items include 

expenses booked under developmental works and purchase of capital assets. 

122. Deposits and Advances: Under the municipal accounting system, certain items are 

compiled under advances and deposits. These items are temporary in nature and are 

essentially adjustments for the purpose of recoveries and payments. Items under this head 

include library cess, income tax deductions, pension payments, provident fund, payment 

and recoveries of advances to employees and contractors, etc. 

2. Financial Status 

123. Revenue income of 

Municipality has 

grown to Rs. 599.70 

lakh in the FY 2003- 

04 from Rs. 547.41 

lakh in FY 2000-01, 

at an annual growth 

of 3.09 percent. 

Revenue expenditure 

Figure 6.1: Total Revenue Income and Expenditure Trend 

- 

2000-01 2001-02 2002-03 2003-04 

Year 

Revenue 

Income 

Revenue 

Expenditure 

44



increased at an average annual rate of 15.63 percent from Rs. 416.52 lakh to Rs. 637.78 

lakh during the assessment period. The revenue account maintains surplus during the 

entire assessment period except during 2003-04 and maintained a maximum surplus of Rs. 

245.44 Lakh in 2002-03. The trends for the revenue fund are presented in Table 6.1. High 

revenue income during the FY 02-03 has attributed to transfer of previous years ULB’s 

share of State Finance Commission Grant (SFC) allocation and Surcharge on stamp duty. 

During the FY 03-04 high revenue expenditure incurred due to a high operation and 

maintenance expenditure for service provision. 

Table 6.1: Summary of Municipal Fund 

Item 2000-01 2001-02 2002-03 2003-04 


Revenue Account 

Revenue Income 547.41 514.43 740.52 599.70 

Revenue Expenditure 416.52 450.55 495.08 637.78 

Surplus/Deficit 

Capital Account 

130.88 63.88 245.44 (38.08) 

Capital Income 180.71 40.61 51.12 350.89 

Capital Expenditure 291.45 0.05 18.82 156.86 

Surplus/Deficit (110.75) 40.56 32.30 194.03 

Fiscal Status 

Advances & Deposits 

20.14 104.39 277.74 106.54 

Extraordinary Income 204.63 26.27 37.86 18.08 

Extraordinary Expenditure 11.92 1.80 137.30 12.62 

Surplus/Deficit 192.70 24.47 (99.44) 5.46 

Overall Fiscal Status 212.84 128.86 178.30 112.00 

Source: Karaikudi Municipality & Analysis. 

Note: Figures in parentheses indicates a deficit. Capital Income includes Revenue account transfer for capital 

works. 

Figure 6.2: Total Capital Income and Expenditure Trend 

124. Capital income comprises 

of loans, grants and 

Total Capital Income & Expenditure Trend 

contribution in the form 

400.00 

of initial deposit for 

350.00 

water supply connections, 

300.00 

revenue account transfer 

250.00 

for capital works and sale 

200.00 

proceeds of assets. 

Majority of the capital 

income is in the form of 

loans. The capital 

150.00 

100.00 

50.00 

- 

2000-01 2001-02 2002-03 2003-04 

account has witnessed 

surplus except during 

Year 

2000-01, implying loan drawn and grant received was utilized less for capital works. 

Fiscal status of revenue account and capital account status witnessed surplus during the 

entire assessment period. During the FY 00-01, major share of capital expenditure were 

incurred from public works and Roads asset creation. 

125. The following sections present detailed review of revenue and capital accounts, primarily 

Capital 

Income 

Capital 

Expenditure 

45


aimed at assessing the municipal fiscal status and providing a base for determining the 

ability of Municipality to sustain the planned investments. 

3. Revenue Account 

126. The revenue account comprises of two components, revenue income and revenue 

expenditure. Revenue income comprises of internal resources in the form of tax and nontax 

items and external resources in the form of shared taxes/ transfers and revenue grants 

from the State Government. Revenue expenditure comprises of expenditure incurred on 

establishments, operation & maintenance and debt servicing. 

127. Revenue Income. The revenue sources 

of municipality can be broadly 

categorized as own sources, assigned 

revenues and grants. The source wise 

income generated during the review 

period is presented in Table 6.2. The 

base and basis of each income source 

has been further elaborated in the 

following section. The revenue income 

of Karaikudi Municipality has increased 

from Rs. 440.30 lakh in 2000-01 to Rs. 

485.03 lakh in 2003-04 – a low 

Compound Annual Growth Rate 

(CAGR) of about 3.28 percent. The 

revenue income has declined from Rs. 

620.69 lakh in 2002-03 to Rs. 485.06 

lakh in 2003-04. During the financial 

Figure 6.3: Source of Income (2000 to 2004) 

Revenue Grants 

19% 

Non Tax- Own 

Sources 

19% 

Sources of Revenue Income (2000 to 2004) 

Assigned Revenues 

18% 

Tax- Own Sources 

44% 

year 2002-03 the Karaikudi Municipality has received maximum surcharge on stamp duty 

and State Finance Commission Grant (inconsistent transfer of ULB share), which 

attributed to high revenue income during the same period. 

Table 6.2: Sources of Revenue Income 

Item 2000-01 2001-02 2002-03 2003-04 


Own Sources 

Tax 197.40 198.95 218.97 227.35 

Non Tax 87.60 63.31 136.69 96.99 

Assigned Revenue 57.33 67.10 103.69 115.38 

Grants 97.97 77.51 161.33 45.34 

Total (excl. W&D A/C) 440.30 406.87 620.68 485.06 


128. Own-source income includes income from resource mobilization activities of Municipality 

in the form of taxes, income from municipal properties and markets, building permit fee, 

trade licenses, income from fees and fines, etc. Own revenue sources are further classified 

as tax revenue and non-tax sources that are generated by various sections of the 

Municipality. The salient features of the revenue head is detailed below: 

46

Rs. Lakh 


• Own Sources/Tax. This item head comprises of income sourced primarily from 

property tax (General-purpose tax, Lighting tax, Scavenging tax and Education tax 

excluding Water and Drainage tax), professional tax and other taxes. The property tax 

is the largest revenue-generating item. Own sources of tax income are presented in 

Table 6.3. Average income from own sources constituted 63.34 percent of the total 

revenue income during the review period and has increased at an average compounded 

annual growth rate of 4.40 percent. Tax sources contributed 43.97 percent of the 

revenue income and non-tax sources contribute 19.37 percent of the revenue income. 

Income from municipal properties, markets and other remunerative assets witnessed 

inconsistent collection performance during the assessment period, which attributed to 

low revenue non-tax income during FY 01-02 & FY 03-04. 

Table 6.3: Own Sources of Revenue Income 

Item 2000-01 2001-02 2002-03 2003-04 


Taxes 

Property Tax (excl. W&D Tax) 185.91 186.05 202.17 219.73 

Profession Tax 11.48 11.87 16.78 7.62 

Other Taxes 0.01 1.03 0.02 

Non - Taxes 

Income from ULB’s Properties 37.66 11.30 43.45 12.51 

License Income (Trade, etc.) 8.57 6.96 18.62 9.09 

Income from Fees and Fines 11.25 13.00 31.01 24.88 

Miscellaneous Income 30.11 32.05 43.62 50.51 



Property Tax: This is the most important category of own source income to 

the Municipality. Karaikudi Municipality levies a consolidated property tax 

of 31 percent of the Annual Rental Value (ARV). During the assessment 

period, the numbers of property tax assessments increased at an average 

growth rate of 5.73 percent per annum. Property tax income however has 

increased at a CAGR of about 5.73 percent during the assessment period. 

Figure 6.4: Property Tax Collection Performance 

129. The average collection performance 

Property Tax Collection Performance 

of Property Tax for the review 

450 

period is 78 percent and the same is 400 

presented in Table 6.4. The 

350 

property tax levied is 31 percent of 300 

the Annual Rental Value (ARV) 

250 

and includes the general tax (18%), 200 

water and drainage tax (8%) and 

150 

education tax (5%). It is observed 

100 

that the Municipality maintained a 

50 

Low arrear collection of average 

about 56 percent, except during 

0 

2000-01 2001-02 2002-03 2003-04 

FYs 01 and FY 02. The current and 

Year 

arrear collection during the FY 04 was 84 percent and 42 percent respectively. 

Total- 

Demand 

Total- 

Collection 

47


Table 6.4: Property Tax – Demand Collection and Balance Statement 

Item 2000-01 2001-02 2002-03 2003-04 

Demand (Rs. Lakh) 

Arrear 50.44 79.74 112.73 120.95 

Demand 233.59 226.95 280.71 293.52 

Total 284.03 306.69 393.44 414.47 

Collection (Rs. Lakh) 

Arrear 40.35 47.92 48.07 50.28 

Demand 210.23 202.84 224.42 245.88 

Total 250.58 250.76 272.49 296.16 

Collection Performance (%) 

Arrear 80% 60% 43% 42% 

Demand 90% 89% 80% 84% 

Total 88% 82% 69% 71% 

Total no of Assessment 

(Nos.) 19,991 20,294 22,640 24,986 

Growth in Assessment (%) 1.52% 11.56% 10.36% 


130. The total collection performance of the Municipality has witnessed a declining trend from 

88 percent to 69 percent during the assessment period. The maximum arrear collection was 

achieved during the FY 01 and the same was as low as 42 percent during FY 04. There are 

a total of 24,986 assessed properties in the Municipality and this has increased at an 

average growth rate of 5.73 percent per annum from 19,991 assessments in 2000-01. The 

ARV per property during the FY 04 is Rs. 3,790 and the tax per property is Rs. 1,175. 

Professional Tax: The municipality also collects professional tax from all 

registered organizations, companies or firms, public or private, individuals 

and State & Central Government departments. Currently 3,686 assesses are 

registered with the Municipality. Based on the demand, the average tax per 

professional is about Rs. 314/- per annum. low average collection of 21 

percent observed during the review period and the current collection is 

around 56 percent during the same period. The details of Demand Collection 

and Balance statement are provided in Table 6.5. 

Table 6.5: Profession Tax – Demand Collection and Balance Statement 

Item 2000-01 2001-02 2002-03 2003-04 


Arrear 41.65 48.55 39.40 39.40 

Demand 17.15 16.29 17.81 11.57 

Total 58.80 64.84 57.21 50.97 


Arrear 2.73 3.65 6.83 - 

Demand 8.75 8.22 9.95 7.62 

Total 11.48 11.87 16.78 7.62 


Arrear 7% 8% 17% - 

Demand 51% 50% 56% 66% 

Total 20% 18% 29% 15% 


48


(ii) Own Sources/Non Tax. This item head comprises of income from Municipal 

properties, fees on Municipal services (building permission, etc.), income from 

interest on investment and miscellaneous services. On an average, through the 

assessment period, own source/non tax income constitutes 19.37 percent of the 

total revenue income. Income from remunerative enterprises, income from fees 

and fines constitute the major revenue sources under this item head. Income 

through non-tax own sources of the Municipality has grown over the assessment 

period at a CAGR of about 3.45 percent. 

Remunerative Enterprises: Income from remunerative enterprises is the nontax 

income in the form of rentals from assets like shopping complexes, 

market fee, parking fee and income from other real assets owned by the 

Municipality. Income from the remunerative assets of the municipality 

contributed 5.23 percent of the revenue income during the assessment period 

and registered a negative CAGR of about 30 percent. Income from 

municipal properties, markets and other remunerative assets witnessed 

inconsistent collection performance during the assessment period, which 

attributed to low non tax revenue income during the FY 01-02 & FY 03-04. 

The average revenue mobilized during the review period under this item 

head is Rs. 26.23 Lakh. Rent recovery from the shopping complexes is very 

low during the FY 2003-04, attributed to negative revenue growth of 

remunerative enterprises. 

(iii) Assigned Revenues. This item head comprises of income from Government of 

Tamil Nadu (GoTN)/State transfers of municipal income collected by the state line 

department. Transfers are in the form of municipality’s share of taxes levied and 

collected by GoTN from establishments/operations within the municipal limits. 

Surcharge on transfer of immovable properties and entertainment tax, are the 

major items on which these revenues are realized by Municipality. 

Table 6.6: Income from Assigned Revenue 

Item 2000-01 2001-02 2002-03 2003-04 


Entertainment Tax 22.17 20.00 20.89 19.10 

Surcharge on Stamp Duty 35.16 47.00 82.81 96.28 

Other Transfers - 0.10 - - 

Total 57.33 67.10 103.69 115.38 

Share in total Revenue Income (%) 13.02 16.49 16.71 23.79 

Growth (%) - 17.03 54.54 11.27 


Income through assigned revenues contributes around 17.50 percent of 

revenue income and it is growing at an average compounded annual growth 

rate of 26.25 percent during the review period. It is observed in Table 6.6 

that the inflow from this account head has been inconsistent due to delays in 

transfers and deductions at source towards municipality debt repayment 

commitments and/ or other dues payable to GoTN. 

Entertainment Tax: The Commercial Tax (CT) Department collects 

49


entertainment tax from six cinema halls (with a total capacity of 5,200 seats) 

functioning within Municipal limit. The CT Department transfers 90 percent 

of the total tax collection to Municipality, and retains 10 percent towards 

management charges. Entertainment tax accounts for around 4.31 percent of 

total revenue income. 

Stamp Duty: Surcharge on stamp duty is another assigned revenue source, 

accounting for 13.18 percent of revenue income during the assessment 

period. It is levied in the form of a surcharge on stamp duty applicable on all 

properties registered or transferred within Municipality limits. The 

Registration Department collects and 90 percent of the collections are 

transferred to Municipality. 

(iv) Revenue Grants and Contribution. This item mainly comprises revenue grants and 

compensations from the State Government under various heads. The regular grants 

include the State Finance Commission (SFC) grants and the others include aid 

grants, grants for services like roads, buildings, maternity and child welfare, public 

health, contributions for elementary and secondary schools and etc. Grants, which 

are for specific purposes, are ad-hoc in nature. In case of Karaikudi Municipality, 

revenue grants and contributions constitute about 19.16 percent of the total 

revenue income and have registered an average annual growth rate of (22.65) 

percent. SFC Devolution is major item of grants, which is transferred as part of 

SFC recommendation. As per SFC recommendation, 12% of state revenue under 

pool B is transferred to each local body based on a formula recommended by SFC. 

The fluctuation in SFC grant is due to delay and deduction at source. 

Table 6.7: Income from Revenue Grants 

Item 2000-01 2001-02 2002-03 2003-04 


State Finance Commission Grant 76.06 46.62 161.33 32.40 

Other Grants 21.91 30.89 - 12.94 

Total 97.97 77.51 161.33 45.34 

Share in total Revenue Income (%) 22.25 19.05 25.99 9.35 

Growth (%) (20.88) 108.14 (71.90) 


50

131. Revenue Expenditure. Revenue 

expenditure of Municipality has 

been analyzed based on 

expenditure heads broadly 

classified under the following 

departments- General 

Administration and Tax 

collection, Public Works and 

Roads, Street Lighting, Public 

Health & Conservancy, Town 

Planning and Miscellaneous 

Items. Water supply and drainage 

revenue expenditure is analyzed 

separately and the same is 

presented in the following 

section. Revenue expenditure is 

further classified under 


Figure 6.5: Items of Revenue Expenditure (2000 to 2004) 

Operation & 

Maintenance 

18% 

Items of Revenue Expenditure (2000 to 2004) 

Debt Servicing 

2% 

Establishment, Operation & Maintenance and Debt Servicing. 

Establishments 

80% 

Table 6.8: Sector wise Revenue Expenditure 

Item 2000-01 2001-02 2002-03 2003-04 


Establishment 289.20 291.47 329.74 372.55 

Operation & Maintenance 45.92 52.91 65.53 135.54 

Debt Servicing - 7.00 14.00 12.88 


Growth (%) 4.85 16.48 27.29 


(i) Establishment Expenditure. Establishment expenditure alone accounts for about 80 

percent of revenue expenditure, excluding water supply and drainage account. 

About 67 percent of the total revenue income is utilized for payment of salaries 

excluding water supply and drainage staff salary and other related expenses. Debt 

servicing of the Municipality accounts for a meager around 1.97 percent of the 

revenue expenditure was made from general fund during the review period. 

(ii) For the assessment period, revenue expenditure grew at an average rate of 15.84 

percent; while growth in revenue income was 3.28 percent during the same period. 

This indicates that revenue and education fund of Municipality is in deficit. 

(iii) Further, while expenditure on establishment grown at annual average rate of 8.81 

per cent, expenditure on O&M grew at an average rate of 43.45 percent per annum 

indicating that the Operations and maintenance expenditure need to be controlled. 

Public health conservancy O&M increased by 8 times and street lighting by two 

times during the financial year 2002-03 to 2003-04. 

51

The following Table 6.9 

presents sector 

/department wise salary 

expenditure incurred 

during the assessment 

period. Since, the 

department wise 

establishment expenditure 

was not furnished in the 

account statement 

(consolidated figures only 

available in the 2000 

series) consultant were 

used the third SFC 

questionnaires for 

working out the 

department wise salary. 

Sector wise Salary Composition (2000 to 2004) 


Figure 6.6: Sector Wise Salary Composition (2000 to 2004) 

Conservancy 

54% 

Water Supply 

6% 

General Administration 

24% 

Public Health 

8% 

Engineering Wing 

4% 

Over 54 percent spent for conservancy staffs salary and around 24 percent for 

general administration departments include revenue collection and administration 

department salary. Water supply staff salary contributes about 6 percent of the total 

expenditure incurred towards establishments. 

Table 6.9: Sector wise Salary 

Item 2000-01 2001-02 2002-03 2003-04 


General Administration 55.95 56.64 56.59 52.37 

Engineering Department 10.05 10.18 10.17 9.41 

Conservancy 128.86 130.46 130.35 120.62 

Public Health 20.20 20.45 20.43 18.91 

Street Lighting 8.41 8.52 8.51 7.88 

Water Supply 14.19 14.37 14.35 13.28 

Total 237.66 240.62 240.40 222.47 

Growth (%) 1.25 (0.09) (7.46) 

Source: SFC Questionnaire Document 

Establishment expenditure of all sections (excluding water and drainage account) 

accounts for an average of 80.33 percent of revenue expenditure. Establishment 

expenditure of the Municipality has been consistently above 70 percent and there 

have not been any major efforts on part of the Municipality towards containing the 

establishment expenditure. 

Though the growth rate of establishment expenses has fallen, the actual results of 

privatization efforts are yet to reflect on accounts. In the coming years, these 

expenses are expected to go down due to the reforms taken up by the Municipality. 

It is necessary that the Municipality go ahead with such privatization initiatives so 

as to improve upon and allocate more amounts for the O&M and debt servicing. 

52


(i) Operations & Maintenance. Operation and maintenance expenditure of all sections 

together accounts for 17.70 percent of revenue expenditure and had increased at an 

average rate of 43.45 percent per annum. 

General Administration, Public health & conservancy, Street lighting are the major 

expenditure items. O&M expenses are dominated by power charges for street 

lighting and that for general administration, while that for the upkeep of roads has 

been minimal. Street lighting sector can be put for privatization and implement 

energy conservation measures to curtail the costs on repairs, replacements and 

power charges. 

Debt Servicing. A review of the outstanding loan statement of Municipality, as on 

March 31, 2005, i.e., at the start of the FY 2004-05 reveals that the net outstanding 

debt liabilities of Municipality are at Rs. 476.59 Lakh. Table 6.10 details out the 

agency wise outstanding loans. 

Table 6.10: Out standing Loan Statement 

Item Loan Amount Outstanding 


Government of Tamil Nadu 269.13 259.29 

MUDF 50.80 30.50 

TUFIDCO (Own Fund) 62.50 62.50 

TUFIDCO (Various Schemes) 99.99 46.55 

TNUDF 35.28 32.12 

DTCP 25.00 45.63 

Total 542.70 476.59 


132. The total amount of loans drawn by the Municipality till date is Rs. 542.70 Lakh, majority 

of it from Government of Tamilnadu and TUFIDCO. It needs mention that the ratio of 

outstanding loans to current demand of property tax is about 162 percent. The ratio in 

terms of ARV (estimated at Rs. 3,790) is 1.99; thereby indicating that the Municipality is 

capable of leveraging additional debt to finance its projects as this is below the threshold 

of 2 to 3 (generally considered by Financial institutions). 

133. Debt servicing accounted for around 4.46 % of revenue expenditure during the review 

period and the DSR (as % of revenue income) is around 3.78 %, which is well below the 

threshold level of 25 percent, as considered by financial institutions. The Municipality has 

to start to focus upon sustainable debt servicing after having cut down establishment costs 

to improve its credit rating and capability towards leveraging additional debts. 

4. Water Supply and Drainage Account 

134. As mentioned earlier, local bodies in Tamilnadu maintain a separate water supply and 

drainage fund. Hence, to maintain the consistency and also to assess the cost recovery 

aspect, the consultants have analyzed the water fund separately. The details are provided 

in Table 6.11 and the water supply and drainage revenue fund expenditure trend is plotted 

on a graph Figure 6.7. 

53


Table 6.11: Revenue Account Status of Water Supply and Drainage Fund 

Item 2000-01 2001-02 2002-03 2003-04 


Revenue Income 

Water & Drainage Tax 64.67 64.71 70.32 76.43 

Water Charges 42.40 42.85 49.47 38.11 

Water Supply & Sanitation Grant - - - - 

Other Income 0.04 - 0.03 0.10 

Total 107.11 107.57 119.82 114.64 

Revenue Expenditure 

Establishments 12.61 22.90 24.77 13.49 

Electricity Charges 37.18 29.00 36.88 61.26 

Miscellaneous 19.65 23.50 16.62 30.75 

Debt Servicing- Old 11.97 23.77 7.54 11.31 

Total 81.41 99.17 85.81 116.81 

Surplus/Deficit 25.70 8.40 34.01 (2.17) 

Recovery (%) excl. tax 52% 43% 58% 33% 


135. Salaries of staff directly working in the water supply department are booked under this 

head, while salaries of other engineering staff performing administrative functions related 

to water supply are booked under the engineering section of general fund. Expenditures 

incurred under this account comprised of 43 percent power charges and other operation & 

maintenance expenses accounts 7 percent and 20 percent on establishment costs. The 

balance 16 percent is spent on wages and other expenditures, around 14 percent utilized 

towards debt servicing. 


Figure 6.7: Water & Drainage Account Expenditure Trend 

70.00 

60.00 

50.00 

40.00 

30.00 

20.00 

10.00 

- 

Water & Drainage Account Expenditure Trend 

2000-01 2001-02 2002-03 2003-04 

Year 

Staff Salary & 

Employee 

Related 

Expenses 

Equipment 

Maintenance & 

Repairs 

Board 

Payment 

Miscellaneous 

Debt 

Servicing- Old 

Administration 

Expenses 

Electricity 

Charges 

54

Rs. Lakh 


136. The cost recovery incase of excluding water and drainage tax income work out to only 46 

percent of the revenue expenditure incurred in the water supply and drainage fund account. 

Thus, the above analysis indicates that the current tariff is not able to recover even a share 

of the O & M expenses, when it is compared with only water charges. Major share of 

water supply income is derived by way of water and drainage taxes, which account for 

about 61.47 percent of water supply and drainage income. 

Figure 6.8: Water Charge Collection Performance 

137. There are a total of 9,052 

water supply house service 

80 

Water Charge Collection Performance 

connections as of 2004-05 

70 

provided by the Municipality 

in the town. The average 

60 

collection performance of 

50 

water charges for the review 40 

period indicated in Table 

6.12 though averaged at 64 

30 

percent, the cost recovery in 20 

the sector is only 46 percent 

excluding water and 

10 

drainage taxes, indicating 

low coverage and very less 

number of legal service 

0 

2000-01 2001-02 

Year 

2002-03 2003-04 

connections against the service provided. 

Table 6.12: Water Charges – Demand Collection and Balance Statement 

Item 2000-01 2001-02 2002-03 2003-04 


Arrear 16.03 14.39 44.86 27.36 

Demand 45.88 47.02 28.82 45.48 

Total 61.91 61.41 73.67 72.84 


Arrear 3.46 0.24 34.75 7.09 

Demand 37.69 41.51 13.64 30.74 

Total 41.15 41.75 48.39 37.83 


Arrear 22% 17% 77% 26% 

Demand 82% 88% 47% 68% 

Total 66% 72% 66% 52% 

Total no of Connections (Nos) 7,404 7,607 8,105 8,397 

Growth in Connections (%) 6.55% 3.60% 1.26% 


138. The numbers of House Service Connections stand at just 42 percent of the PT assessments 

indicating the large numbers of unauthorized connections in the Municipality. The 

unauthorized connections and unassessed properties need to be brought under the user 

charges and municipal tax gambit to affect cost recovery on the investments. 

Total- 

Demand 

Total- 

Collection 

55

5. Capital Account 


139. Capital Income. Capital income comprises of loans, grants and own contributions. The 

detailed components of capital income are detailed in Table 6.13. An analysis of this 

account indicates that grants & contributions have contributed the maximum share of 

income under this account. While on an average, 55 percent of the capital income is in the 

form of loans from various sources and 40 percent is from grants and contributions like 

XIIth Finance Commission grants for public works and roads. New loans were acquired 

during the assessment period. Own contribution from revenue account contributed 4.68 

percent during the assessment period. 

Table 6.13: Status of Capital Account - General 

Item 2000-01 2001-02 2002-03 2003-04 


Capital Income 

Capital Loans 169.48 5.77 18.73 23.32 

Capital Grants and Contribution 2.75 13.25 3.84 194.98 

Own Sources - 0.05 - 49.41 

Total (excl. W & D a/c) 172.23 19.07 22.57 267.71 

Capital Expenditure 

General 16.82 - 1.00 2.57 

Public Works and Roads 197.65 - 5.25 - 

Street Lighting 3.05 - - - 

Public Health & Conservancy 2.57 - - - 

Education 5.31 - 12.10 37.88 

Total 225.39 - 18.35 40.45 

Surplus/Deficits (excl. W &D a/c) (53.16) 19.07 4.22 227.26 


140. There have not been any significant capital grants over three years since FY 01 except FY 

04. There is also no income realized by the Municipality in the form of sale proceeds. 

141. Capital Expenditure. The majority of capital expenditure has been directed towards 

general purpose includes all item of works excluding water supply and drainage and roads 

over the past four years, this is due to fact TNUDF/TUFIDCO had funded most of the 

municipalities for roads during the assessment period. 

142. Analysis of capital income and capital expenditure notes that the account was in surplus 

during the assessment period excluding FY 00-01, indicating lesser utilization of allocated 

funds or just start of utilization of allocated funds. There was no capital work under taken 

during 2001-02 other than water supply and drainage fund. 

143. Water supply and drainage capital account status is detailed in Table: 6.14. Capital 

income is mainly from water supply connection charges, other than that no other income 

received during the assessment period. Capital account is surplus during the financial year 

2001-02 to 2003-04 except during 2000-01. 

56


Table 6.14: Status of Water Supply and Drainage Capital Account 

Item 2000-01 2001-02 2002-03 2003-04 


Capital Income 

Capital Loans - - - - 

Capital Grants and Contribution - - - 48.28 

Own Sources 8.48 21.54 28.55 34.90 

Total 8.48 21.54 28.55 83.18 

Capital Expenditure 

Water supply 52.68 0.05 0.47 102.48 

Drainage &Sanitation 13.38 - - 13.93 

Total 66.06 0.05 0.47 116.41 

Surplus/Deficits (57.58) 21.49 28.08 (33.23) 


6. Assets and Liabilities 

144. Current assets and liabilities of Karaikudi Municipality include monies due to 

Municipality from debtors and monies due from Municipality to creditors, respectively. 

Table 6.15 presents a summary of the current assets and liabilities of Karaikudi 

Municipality. 

145. The current assets include outstanding arrears in property tax, water charges and 

profession tax and lease rental (non-tax items) dues. The total current assets due to 

municipality are Rs. 196.66 lakh. 

146. Current liabilities include the payment of power charges due to TNEB, Salaries Payable, 

PF and other contribution due, tax /cess payable to government, other payables and 

deposits. The net liability of Karaikudi Municipality is Rs. 57.8 lakh. The current ratio is 

the ratio of total current assets to total current liabilities, which is used to measure shortterm 

liquidity of a ULB. The idea behind measuring this ratio is to assess whether the 

ULB has enough liquid assts to pay off its current obligations when they fall due. 

Intuitively one would expect that this ratio should be over 1. In case of Karaikudi 

municipality, the current ratio is 3.40 and hence ULB has comfortable current ratio. 

Table 6.15: Summary of Current Assets and Liabilities status 

Description Amount (Rs. Lakh) 

A. Current Assets 

Property Tax Recoverable 118.31 

Profession Tax Recoverable 43.35 

Water Charges Recoverable 35.00 

License/Lease/Rental/other Recoverable - 

Other Recoverable - 

Cash on Hand /Bank - 

Total – Current Assets 196.66 

B. Current Liabilities 

Salaries Payable - 

PF and Other Contribution 42.00 

TNEB 12.00 

Library Cess Payable - 

57


Description Amount (Rs. Lakh) 

Other Payables - 

Deposits 3.80 

Total – Current Liabilities 57.80 

Net Status 138.86 


7. Key Financial Indicators and Issues 

147. A set of key financial indicators has been derived using the financial data procured from 

the Municipality for the assessment period. Table 6.16 presents these indicators. These 

indicators are used to assess the municipal performance with regards resource 

mobilization, fund utilization, financial performance and collection efficiencies. 

Table 6.16: Key Financial Indicators 

Indicators Value Unit 

A Resource Mobilization 

1 Per Capita Income 

2 Sources of Funds 

691 Rs. p.a 

a Share of Own Sources in Total Revenue Income (RI) 70.23 % 

b Share of Property Tax in Total Revenue Income 45.18 % 

c Share of Revenue Grants & Subsidies in Total RI 15.58 % 

3 Growth in Revenue Income 3.09 % p.a 

4 Growth in Own Sources of Revenue Income 3.80 % 

5 Per Capita Own Income 

B Fund Application 

353 Rs. P.a 

1 Per Capita Expenditure 

2 Uses of Funds 

575 Rs. p.a 

a Share of Establishment Expenditure in Total RE 

Share of O&M Expenditure in Total Revenue 

68.59 % 

b Expenditure 26.95 % 

c Share of Establishment Expenditure to Total RI 56.48 % 

3 Growth in Establishment Expenditure 6.46 % 

4 Growth in O&M Expenditure 26.67 % 

5 Growth in Total Revenue Expenditure 

C Liability Management 

1 Per Capita Liability (2004-05 estimated) 

15.63 % p.a 

a Outstanding Debt per Capita 536 Rs. 

b Outstanding Non-Debt Liability per Capita 141 Rs. 

c Total Outstanding Liability per Capita 

As a Proportion of Property Tax Current Demand (2003- 

677 Rs. 

2 04 estimated) 

a Outstanding Debt as % of P.T Demand 162.37 % 

b Outstanding Non-Debt Liability as % of P.T Demand 42.63 % 

c Total Outstanding Liability as % of P.T Demand 

3 As a Proportion of Property Tax Own Revenue Income 

205.00 % 

58


Indicators Value Unit 

(2003-04 estimated) 

a Outstanding Debt as % of Own Revenue Sources 108.57 % 

b O/s Non-Debt Liability as % of Own Revenue Sources 28.50 % 

c Total O/s Liability as % of Own Revenue Sources 137.07 % 

4 Non-Debt Liability as % of Total Liability 20.80 % 

5 Debt Servicing Ratio (D.S/ Revenue Income) 3.78 % 

D Performance Indicators 

1 Operating Ratio 0.84 Ratio 

2 Growth in Per Capita Own Income 3.42 % p.a 

3 Growth in Per Capita Grant (23.38) % p.a 

4 Growth in Per Capita Total Revenue Income 2.12 % p.a 

5 Growth in Per Capita Establishment Expenditure 7.53 % p.a 

6 Growth in Per Capita O&M Expenditure 29.12 % p.a 

7 Growth in Per Capita Revenue Expenditure 14.17 % p.a 

8 Capital Utilization Ratio 0.81 Ratio 

E Efficiency Indicators 

1 Tax Collection Performance 

a Property Tax 78% % 

b Water Charges 63% % 

c Sewer Charges NA % 

d Profession Tax 21% % 

2 No. of P.T Assessments per Tax Collection Staff 2,776 Nos. 

3 Property Tax Demand per Assessment 3,790 Rs. p.a 

4 No. of Municipal Staff per 1000 Population 3.27 Nos. 

5 Annual Revenue (Own Source) per Municipal Staff 11.15 Rs. Lakh p.a 

6 Population per Residential P.T Assessment 3.59 Persons 

Source: Analysis. 

148. Resource Mobilization Indicators. These indicators summarize the performance of the 

Municipality with regards sources of funds. Karaikudi Municipality derives about 70.23 

percent of its revenue income from own sources, which is a good sign, while grants 

account for just about 15.58 percent of the revenue income. 

149. Fund Application Indicators. These indicators are a measure to ascertain the utilization 

from the municipal fund. Around 69 percent of the revenue expenditure is spent on 

establishment heads, only about 27 percent for O&M of municipal assets and services. 

Leaving only 4 percent utilized for debt servicing. Establishment expenditure accounts for 

about 57 percent of the total revenue generated by the Municipality. 

150. Liability Management Indicators. These indicators are a measure to ascertain the 

utilization from the municipal fund regards to debt servicing. The ratio of debt servicing to 

revenue income is only 3.78 percent during the assessment period. The per capita average 

outstanding debt works out to 536 rupees and per capita non-debt liability is 141 rupees. 

Out standing debt to property demand is around 162 percent and non-debt liability is 43 

percent times the property tax demand for the current year. 

59


151. Overall Financial Performance Indicators. These indicators are a measure to assess the 

overall financial performance of the Municipality with regards operational performance 

and effective growth in revenue income and expenditure. The average operating ratio 

during the assessment period was a healthy 0.84 and the capital utilization ratio was low at 

0.81 indicating lesser utilization of revenue surpluses in asset creation – rather most of the 

capital expenditure has been incurred through external funding like loans, grants and 

contribution. The indicators of growth in per capita income and expenditure item heads 

indicate the effective growth, giving a performance measure relative to the growing 

population. Karaikudi Municipality has demonstrated only 2.12 percent annual growth in 

per capita revenue income during the assessment period, while the per capita revenue 

expenditure has grown at a significantly higher 14.17 percent during the corresponding 

period. Which indicates that as population increases revenue fund will be in deficit, so 

there is a need for controlling revenue expenditure. 

152. Efficiency Indicators. These indicators are essentially a measure to assess Municipal 

efficiency with regards revenue base coverage and realization. Karaikudi Municipality has 

maintained a healthy collection performance both with regards property tax and water 

charges (78 percent and 63 percent respectively). The average population per assessment 

at 3.56 indicates that the property tax base has a wide coverage. 

153. Key issues and conclusions are based on the review and assessment municipal finances 

and discussions with relevant municipal officials. 

(i) Maintenance and Reporting of Accounts. The State Government deducts debt due 

by the Urban Local Body and then transfers funds (SFC devolution) the Urban 

Local Body records do not capture such apportionment. ULB’s do not maintain 

department/sector wise salary expenditure as mentioned in the ULB’s Accounting 

Manual. 

(ii) Revenue Realization. Taxes and charges are major own sources of revenue 

income. Being more dynamic in nature and within the control of the Urban Local 

Body, these revenue incomes have potential to contribute more to the municipal 

fund. Besides low tax rates and charges levied, the actual demand itself is not 

established. Key issues regarding the above comprise: 

• Low water supply coverage witnessed there are chances of illegal or 

unauthorized connections in the town; 

• Financial transaction trends not commensurate with population growth trends, 

resulting in reduction in per capita expenditure levels; 

(iii) Fund Application. Key issues regarding application from the municipal fund 

comprise: 

About 69 percent of the total expenditure is on establishment-related heads, leaving 

relatively lower amounts for expenditure on operation and maintenance of services, which 

is very high and above the normal/ideal range of 49 percent. 

60

A. Overview 

VII. URBAN BASIC SERVICES FOR POOR 


154. Owing to rapid urbanization in and around the town, large influx of the migrants has been 

observed, which has resulted in formation of slums. The town presents a wide range of 

activities in various institutional and commercial sectors. Growth in such activities, 

possibilities of absorption in various service sectors, scope of employment in trade and 

business activities, hawking, retailing, carting etc. could have attracted rural poor to the 

town. 

155. There are fifteen notified slums and the total population residing in slum is 26,013. 

Around 30 percent of total population is residing in slums. The extent of area under the 

slums is around 150 acres. The ward-wise details on slum settlements are listed in Table 

7.1. 

Table 7.1: Existing Ward Wise Settlements of Slums 

Sl. 

No. 

Location Ward 

No. 

House 

holds 

Population No. of BPL 

Households 

BPL 

Households 

% 

1 Kalanivasal 1 475 2,375 163 11.13 

2 Meenakshi Puram 3 353 1,743 40 2.73 

3 Jeeva Nagar 3, 4 265 1,320 18 1.23 

4 Anna Nagar 5 877 4,347 143 9.76 

5 Servar Ooani 22 116 563 85 5.80 

6 Veeriyam Kanmoi 34 243 1,177 89 6.08 

7 Pappa Oorani 34, 35 456 2,703 118 8.05 

8 GaneshPuram 31, 33 720 3,562 66 4.51 

9 Kalvaipottal 30 319 1,496 59 4.03 

10 Keela Oorani South 25 295 1,428 161 10.99 

11 Kurchi Kmai 19 216 1,022 126 8.60 

12 Pananthoppu 32, 33 310 1,530 70 4.78 

13 Senjai Avvaiyar St 36 180 926 79 5.39 

14 Maruthupandiyar Nagar 19 132 538 70 4.78 

15 Vaithiyalingapuram 34 252 1,283 178 12.15 

Total 5,209 26,013 1465 100.00 



156. All the slums are having piped water supply systems connected through public stand posts. 

In addition to this, hand pumps are also provided in some slums, which are located in 

wards 1, 5, 22, 33, 30, and 34. There are 56 public stand posts in these slums apart from 

eight bore wells with hand pumps. The distribution network in the slums runs to a length 

of 12.35 km. 

61

2. Sanitation 


157. There are 13 public convenience units including eight ISP units located in the slums of 

Karaikudi. These are located in almost each of the slum localities. Most slum households 

have individual septic tanks or Low Cost Sanitation units. 

3. Roads and Street lights 

158. The municipality has laid bituminous roads (16.1 km) and cement concrete (4.5km) roads 

in majority of the slums. However, the street lighting remains inadequate in these slums at 

an average of one street light pole for every 267m of road length. There are 126 tube 

lights, 1 Sodium Vapour Lamp and 2 Mercury vapour lamps in the slums. The existing 

infrastructure facilities of slums are presented in Table 7.2 and identified slums with 

location are presented in Figure: 7.1 

Table 7.2: Existing Infrastructure Facilities 

Name of 

Ward Length of Roads Water Supply Public Street Lights 

Slums 

No CC BT WB Oth Piped PSP HP Conve MV SV 

nience 

Tu 

Kms Kms Nos. Nos Nos. 

Kalanivasal 1 - 0.3 - 0.5 0.25 5 1 1 (16) - - - 

Meenakshi Puram 3 0.6 2.0 - 0.5 1.20 9 - 1 (8) - - - 

Jeeva Nagar 3, 4 - 1.2 0.4 0.3 1.40 5 - 1 (16) - - - 

Anna Nagar 5 - 2.7 1.2 - 2.00 7 2 1 (16) - - - 

Servar Orani 22 0.4 0.9 0.5 - 0.50 4 1 1 (8) - - - 

Veeriyam 

Kanmoi 

34 0.5 0.8 0.3 0.3 0.60 5 - 1 (16) - - 15 

Pappa Orani 34,35 0.3 0.7 0.5 0.5 0.50 2 - - - - 12 

Ganesh Puram 31,33 - 0.6 0.3 0.3 0.40 2 1 2 (16) - - - 

KalvaiPottal 30 - 1.2 0.6 0.9 1.00 4 1 1 (16) - - 33 

Keela Orani 

South 

25 0.7 0.8 - 0.6 0.95 2 - 1 (16) 1 - 27 

Kurchi kamoi 19 0.6 1.2 0.7 0.5 0.80 2 - - - - - 

Panan thoppu 32, 33 0.3 1.1 0.5 0.4 0.75 3 1 1 (16) 1 1 21 

Senjai Avvaiyar 

Street 

36 0.5 0.9 - 0.5 0.60 2 - 2 (24) - - 18 

Maruthupandiyar 

Nagar 

19 0.9 1.1 0.8 0.3 0.20 1 - - - - - 

Vaithiyalingam 

puram 

34 - 0.5 1.5 0.9 1.20 3 1 - - - - 

Total 4.5 16 7.4 6.4 12.4 56 8 13 

(168) 

2 1 126 


62

Map 7.1: Locations of Slums in Karaikudi 


63

B. Poverty Alleviation and Community Development 

1. Policies, Targets and Programs 


159. To alleviate the problems of slum dwellers and to reduce urban poverty, a set of programs 

are initiated and are being implemented by the municipality with assistance from state and 

central government. Two major slum improvement programs are being implemented in 

Karaikudi viz., Swarna Jayanti Shehri Rojgar Yojna (SJSRY) and National Slum 

Development Program (NSDP) apart from the other program like the Integrated Sanitation 

Program. 

160. The SJSRY is planned to provide employment to the urban poor by helping to provide 

self-employment or provisions for wage employment. The central government funding is 

75 percent and the state government funding is 25 percent. The target groups will be a 

minimum of 30 percent women beneficiaries. The proportion of SC and ST will be the 

same proportion as in total population of the town and 3 percent is reserved for 

handicapped population. 

161. A task force has been formed for the implementation of the Swarna Jayanti Shehri Rojgar 

Yojna in Karaikudi town. As part of this program, the following schemes are implemented 

for urban poverty alleviation over the past five years. 

162. SJSRY program consists of - 

(i) Urban wage employment scheme 

(ii) Urban self employment Programs 

(iii) Urban Skill Training 

(iv) Development of Women and Children in Urban Areas (DWCUA) 

(v) Thrift & Credit Societies (TCS) 

2. Government Assisted Schemes 

163. Urban Self-Employment Program (USEP). This is one of the main components of SJSRY. 

This program is decided by the selection of beneficiaries who are finalized by the task 

force based on the recommendations of the Community Structures and the UPE Cell. In 

these programs, the Elected Council is not involved because of the non-involvement of the 

Urban Local Body funds. The sharing pattern between Central and State governments is 

75 percent and 25 percent respectively. This is only for the subsidy money, which will be 

15 percent of the project cost. The beneficiary will spend 5 percent as margin money. The 

banks then contribute the rest of the project cost and thus have a strong say in the selection 

of beneficiaries. 

164. The minimum eligibility for this scheme is confined to Below Poverty Line beneficiaries 

who have education up to ninth standard with emphasis given based on non-economic 

criteria. The maximum unit cost will be Rs 50,000 and the maximum allowable subsidy 

will be 15 percent of the cost of the project, subject to a limit of Rs 7,500. 

64


165. In most of the selected cases, the banks take an upper hand in the decisions, based on the 

viability of the project and the experience of the claimant. There seems to be no strict 

reservations as per the Program Target Groups. The bankers finalize most of the decisions 

after a visit to the site, based on the list forwarded by the rest of the Task Force. The Task 

Force of the Urban Poverty Eradication Cell consists of the 

(i) Project Officer of the UPE- the Commissioner 

(ii) The Chairman of the Council 

(iii) Town Planning Officer-the Nodal Officer 

(iv) Community Organizer 

(v) District Employment Officer 

(vi) Bank Representatives (usually remain absent during meeting proceedings. Final 

decision only after thorough investigation) 

166. Urban Wage Employment Program (UWEP). This program seeks to provide wage 

employment to beneficiaries below the poverty line within the jurisdiction of the local 

body by utilizing their labor for construction of socially and economically useful public 

assets. The eligible municipalities should have less than 5 lakh population as per 1991 

census. This happens to be the program where the Municipal Council has strong decisionmaking 

powers about the selection of work. The other employment programs are decided 

by the selection of beneficiaries who are finalized by the task force based on the 

recommendations of the community structures and the UPE Cell. The UPE cell consists 

Chairman, Commissioner, Community Development Society President and COs 

(Community Organizers-who help the municipality in implementation of the program.) 

167. Usually the empowerment in this stage is given to the council. The ratio of share between 

the Government and the local body is 60:40. The Urban Local Body bears the expenses 

related to the workforce, whereas the Government meets the material costs. The workforce 

is necessarily from the identified Below Poverty Line list. Under this scheme, 22,972 

Mandays of work was generated in Karaikudi during 1999/2000. 

168. Development of Women and Children in Urban Areas (DWCUA). This program is aimed 

at supporting women and children through self-employment schemes on individual and 

group basis for activities like cottage industries, upgrading petty businesses etc. The funds 

for this project are shared between central and state governments in the ratio 75:25. This 

accounts for 45 percent of the total funds and the rest 5 percent comes from the 

beneficiary. There is no funding from municipality. The rest 50 percent is contributed by 

the bank and hence justifies their upper hand in taking the decisions. The beneficiaries are 

again selected by the task force of the urban poverty eradication (UPE) cell that comprises 

of commissioner-project officer, the municipal chairman, Town Planning Officer (TPO) - 

nodal officer, community organizer (CO), and bank representatives. The UPE cell receives 

inputs from the Community Development Societies, which in turn depends on the 

structures below. In case of Karaikudi, there has been only one group benefited during the 

year 2001-2002 with an amount of Rs. 30,000. 

169. National Slum Development Program. Under this program, the funding of the works is 

shared between the (Central Government + State Government 50 percent, Municipality-50 

percent). The works are finalized by the decision of the Council. They are inspected by the 

65


Regional Directorate of Municipal Administration (RDMA) through the Regional 

Engineer. This program is primarily aimed at improving or upgrading the existing slum 

environment. This is a central government sponsored slum development program and has 

three main components: 

(i) Construction (Infrastructure); 

(ii) Welfare (Immunization, education, etc.); and 

(iii) Shelter Up-gradation (Toilets and individual water connections). 

170. The slums given importance are of two types, permanent and non-permanent. In any case, 

they are designated as slums by the slum clearance board. For permanent slums, they are 

to be identified by the quality of roads and drainage. Special priority has to be given to the 

following works 

(i) Improvement of drinking water Supply system 

(ii) Laying/Relaying of roads 

(iii) Provision of Street Lights 

(iv) Drainage facilities 

(v) Improvement and new Public Conveniences with water Supply 

171. Special emphasis is to be given to areas for water supply and sanitation facilities including 

drainage facilities. The SJSRY community structures of Community Development 

Societies, Neighborhood Committees, Neighborhood Groups, etc need to forward the final 

requirements to the Council for decision. The funds allocated have to be decided as per 

slum population. Under this program, Karaikudi Municipality allotted Rs 6.91 lakh and the 

Government funded Rs 6.0 lakh for the year of 2001-02. 

172. The municipality during 2001-02 has sanctioned seven works under the program out of 

which three works were completed, three works are in progress and one work has been 

cancelled because of the objection raised from TNEB. In the year 2000-2001, the 

municipality has spent Rs 12.5 lakh under this program for various works. 

173. Issues. 

(i) The community structures are not given due importance preparation of plans for the 

slums. 

(ii) The priority for works was given to slum wise allotments, based on the preference 

of the council for the priority was to maximize the use of funds in a particular slum 

in that particular year. For the next year, another slum would be taken up. Hence, 

sector wise works were not given importance in all the slums. In addition, the 

proportion of funds to be released based on slum population not considered. 

174. Integrated Sanitation Program. The Integrated Sanitation Program is a World Bank 

funded program under implementation through the Project Management Unit of Tamil 

Nadu Urban Development Project (TNUDP-II) and in coordination with the RDMA. 

Under ISP program, five sanitary complexes are constructed in Karaikudi. 

175. The program is based on demand driven community participation. Under this program, the 

66


recipient community is made aware of various environmental and sanitation aspects. For 

successful implementation, the program is coordinated at the local level through the 

community organizers (COs) of the SJSRY scheme. The program is generally funded by 

way of grants. 80 percent is provided by TNUDP-II as grant 

176. The whole program is planned towards community empowerment and integrated 

sanitation at the Sanitation Complex itself. It is at this place where the community meets 

as a social group. The major components of the program include: 

177. Identification of the recipient Community of BPL Population (mostly in slums). This 

process is usually decided by the municipal council and does not involve the Community 

Development Structures (CDS) of the Town. 

178. Provision of an Integrated Complex with Toilet, Bathing, Washing and Meeting Room 

facilities with special provision of sanitation facilities for children. 16 toilets (10 major +6 

minor) are provided for the community. 

179. Separate facilities for bathing of 10 units are also provided. A separate platform is also 

provided for washing as well. Each unit of ISP is constructed at a cost of about Rs. 10 

lakh. 

180. Awareness programs consisting of information, education and communication activities 

are also conducted within the same complex to create a strong awareness on the related 

issues of health, sanitation and environment. These are conducted as discussions with the 

leaders of community organizations, specialists from the associated fields of health, 

education in the form of camps etc. These activities are for information dissemination and 

education. The communication aspect consists of both formal as well as informal type, 

where formal events are organized by the communities themselves to propagate their 

experiences. 

181. Service Adequacy and Key Issues. The following are a set of indicators, for which the 

current situation and the desired values are presented. The desired values can be used as 

benchmarks by the municipality to check its performance annually/ periodically and set 

targets for itself to be achieved in the next financial year. This will also aid in preparation 

of the Annual CCP Progress Reports by the municipality. The details of performance 

indicators are furnished in Table 7.3. 

Table 7.3: Performance Indicators for Slums 


Slum population as % to Total Town Population 30.10% < 10.0 % 

Household size in Slums 5 persons 4 persons 

% Slum Households to Total Households 30.51 % < 6.5 % 

Distribution Network Reach (against Road length in 

slums) in Slums 

21.44 % > 100.0 % 

Slum Population per Public Stand Post/ Hand Pumps 406 Persons 100 Persons 

Slum Population per Seat of Public Convenience/ ISP 155 Persons 60 Persons 

Complex 

Spacing between Street Lights in Slums (m) 266.7 m. < 30.0 m. 


67


(i) Very often the sanitation facilities in the slums are poor with lack of proper drainage 

and silt & garbage found choking in the drains wherever present. 

(ii) The survey to identify Below Poverty Line families by the Community Organizers 

(COs) themselves has not been successful. The Below Poverty Line eligibility 

criterion declared by the Government is not reasonably established through the 

survey. This could be one of the main reasons for Karaikudi having high Below 

Poverty Line population. 

(iii) In most of the municipalities, the ratio of CO to families is inadequate. In case of 

Karaikudi, there are only two Community Organizers for 5,000 odd households. 

68


VIII. INFRASTRUCTURE DEVELOPMENT AND SERVICE PROVISION 

A. Rationale, Need and Demand 

182. Considering the current deficits and the future requirements, the following strategies and 

action plan are suggested. 

183. Infrastructure assessment of the town indicates inadequate service levels, for present 

scenario, which will further enhance given the future growth; 

(i) Per capita water supply is 73 lpcd instead of 90 lpcd. The coverage of water 

supply connections with respect to property tax assessments is only 44.3 percent; 

(ii) Karaikudi lacks safe sanitation disposal facility, Underground drainage system; 

(iii) Karaikudi lacks scientific municipal solid waste treatment and disposal system 

catering to the waste collected; waste collection efficiency of the local body based 

on rated capacity of the vehicle is a low 21 percent; 

(iv) Surfaced roads within the Urban Local Body is approximately 94 percent; missing 

links, network deficiency and lack of traffic management systems causes 

congestion within the Urban Local Body area and reduces the carrying capacity of 

the roads; 

(v) Drainage network of the town covers only 89 percent of the total road length; 

which has been indicated as one of the major causes of flooding and water 

logging. The abysmal levels of service therefore provide a strong basis and need 

for the project. 

(i) Approach and Design Criteria. The Urban Local Body should increase the level of 

coverage of all facilities, to meet the service norms based on State Norms, CPHEEO 

Norms, UDPFI Norms or other applicable criteria. Based on this, considering the 

current deficits and the future requirements for the Urban Local Body, strategies and 

action plan are suggested. 

(ii) Component Selection Criteria. The total investment in the Urban Local Body 

depends on several parameters like, the level of current basic needs, the town’s 

affordability, and the assessed implementation capacity of the town or its agencies. 

Overall, project component selection is influenced by affordability and 

implementation capacity. In the interest of integrated town development, another 

criterion considered in project component selection has been to ensure inter-sector 

linkages and optimization. For instance, water supply, sanitation and sewerage have 

been seen as a composite sector and not in isolation from each other. 

(iii) Least Cost Solutions and Component Selection. In formulating project components, 

the preferred option was developed based on least cost options, taking into account 

meeting service delivery targets, and whole-life costs, including considerations on 

achievable operation and maintenance arrangements, given available resources in 

terms of skills and facilities. 

69



184. Goals and Service Outcomes. The goals and service outcomes based on the proposed 

strategy for the horizon period is presented in Table 8.1. 

Table 8.1: Goals and Service Outcomes – Water Supply 

S.No Goal 2011 2016 2026 

1 Network cover for general 

households 

100% 100% 100% 

2 Network coverage for urban 


100% 100% 100% 

3 Per capita supply 90 lpcd 90 lpcd 

Hours of supply 24 hours / daily 

6 Un accounted water 20% 15% 12% 

7 O&M Cost Recovery 100% 100% 100% 

8 Collection Efficiency 100 % 100 % 100 % 


185. The Karaikudi municipality should increase the supply levels and the coverage, to achieve 

an average gross supply of 90 lpcd and to cater to 100 percent population. Assuming that 

distribution network is extended to 85 percent of the town roads, all the citizens will enjoy 

the required supply. 

186. The total demand at the source in 2026 for a supply of 90 lpcd is about 11.49 MLD 

indicating a deficit of 4.89 MLD for year 2026 population. Considering the availability at 

source the per capita levels have been maximized to 90 lpcd against the requirements and 

the demand for the future is assessed. The details of future requirements of water supply 

are illustrated in Table 8.2. 

Table 8.2: Requirement until 2026 in Water Supply Sector 

Description Unit Gaps Up To 2026 

Source development till 2026 MLD 4.89 

Feeder mains and Transmission Mains Km 4.31 

Roads Covered with Distribution Network Km 81.25 

Elevated Storage capacity w.r.t Supply (2026) ML 0 

Rehabilitation of existing Network Km 10.10 

Treatment capacity (2026) ML 11.49 


187. Considering the above requirements, capital investments in water supply have been 

planned for facilities to meet growing demand: 

(i) Increase in the source development 

(ii) feeder main laying and rehabilitation of existing distribution network 

(iii) new laying of distribution network 

188. Operation & Maintenance Plan. Adoption of an O &M Plan and Schedule, including 

options of using the private sector for O &M (e.g. management contract). 

70


189. Asset Management Plan. To address the condition assessment and the performance of the 

water supply assets, it is recommended that an asset management plan be prepared for the 

assets of water supply in Karaikudi. 

190. Tariff Revision. Future capital investments on system up-gradation being imminent, the 

tariff structure shall be revised from time to time to enable cost recovery and to service the 

additional debt from the capital investments. 

191. Performance Monitoring. It is important to monitor certain key indicators to assess the 

performance of the system and to ensure sustainability of the operations. 

192. Institutional Strengthening and Capacity Building. Recruitment of trained engineering 

personnel for management of waterworks is an important issue confronting the 

municipality and as well of more importance is to keep them technically updated. 

193. It is necessary that periodic training be imparted to the electricians at the pump house. The 

training should be given to maintain pumps, motors and in energy savings subject. Such 

training facilities are available along with training manuals at the Tamil Nadu Water and 

Drainage Board head office. The availability of Alagappa University within the vicinity 

should reduce the burden on the municipality, which can be consulted for training 

sessions. It is much pertinent and necessary for the operations staff to understand the 

peculiar characteristics of Sambai Oothu. 


194. Goals and Service Outcomes: The goals and service outcomes based on the proposed 


Table 8.3: Goals and Service Outcomes - Sewerage 

S.No Goal 2011 2016 2026 

1 Coverage (Access) 100% 100% 100% 

2 Treatment & Disposal 100% 100% 100% 

3 Recycle & Reuse 25% 40% 50% 


195. The town does not have any sewerage system and the sanitation facilities include septic 

tanks and low cost sanitation units. Against the population coverage, only 76.6 percent of 

the Property Tax Assessments have safe disposal facility. Sewerage and sullage water 

generally flows into the storm water drains and finally into the Uranis. The poor and slum 

dwellers lack adequate safe sanitation facilities and hence are prone to health related 

diseases. To enhance the coverage of safe sanitation facilities, the following strategies are 

recommended. The details of future requirements of sewerage and sanitation are illustrated 

in Table 8.4. 

71


Table 8.4: Requirement until 2026 in Sewerage and Sanitation 

Description 

Under Ground Drainage 

Unit Gaps Up To 2026 

Length of Under Ground Drainage km. 156.74 

STP Capacity MLD 9.19 

Road Rehabilitation due to Water Supply and Sewerage km. 156.74 

Project 

Public Conveniences Units (ISP) 27 


196. Stringent Building Permission Mechanism. Until now, the municipality does not have any 

role to play with respect to this service. Its role is more of secondary nature with the 

building permission rules of Town Planning department playing the primary role. Hence, it 

is necessary that the building use permissions be issued only on ensuring that safe disposal 

facility is adequately provided. The future plan shall be directed towards catering to the 

town’s requirements for the year 2026. The program can be phased in the same way as that 

of the water supply system so that the investment can be made judiciously. 

197. Sewerage Planning. There is immediate need to take the under ground drainage project to 

protect aquifer of Sambai Oothu which is prone to pollution. Proposals will be limited to 

the areas where population density dictates the introduction of piped underground 

sewerage as the only alternative for improving the sanitation and environmental health 

conditions, and where water supply is available. In congested low-income and slum areas, 

community sanitation facilities will be provided, which will be connected to the sewerage 

network. In addition, the municipality has to prepare detailed project report for UGD. 

198. Coverage of Slum Areas. Currently, a majority of the low-income areas do not have safe 

sanitation facilities. However, the Slum Improvement Program have created infrastructure 

in the form of public conveniences, the operation and maintenance of these facilities is not 

satisfactory and hence could not be sustainable. Hence, the sanitation projects be taken up 

under the ISP program for the poor and the slum dwellers and it should be inter linked 

with the UGD. The O & M of the ISP units are to be managed by the local communities. 

199. Requirement for future. The capital investments under this sector are towards provision of 

Under Ground Drainage System for the entire town. The sewerage sector and provision of 

public convenience systems under the sanitation sector mainly aimed at improving the 

sanitation facilities in the slums and the town. For this corporate plan, period investments 

are restricted to provision of Pubic Convenience systems. 

3. Storm Water Drainage & Rejuvenation of Water Bodies 



72


Table 8.5: Goals and Service Outcomes – Storm Water Drain and Water Bodies 

Sl.No Goal 2011 2016 2026 


Macro Drainage Recommendations 100% 

Micro Drainage 

With in the Town 100% 

201. Primary Drain Rehabilitation and Improvement. A significant reduction in depth and 

width is noticed due to siltation and encroachment of drain bunds. To alleviate these, a 

rehabilitation and improvement program is recommended. 

(i) Improvement measures such as widening and deepening 

(ii) Construction of side walls to confirm to uniform cross-section in built up areas 

(iii) Diversion of drains at critical sections 

(iv) Construction of cross-drainage works 

202. Drainage Rehabilitation. The low-lying areas are to be relieved of the flooding problem in 

future by undertaking a drainage rehabilitation program. As a part of this program, the 

leading/ connections between secondary and tertiary drains to primary drains have to be 

improved and strengthened. In addition, control of weed growth, limiting the dumping of 

solid and construction waste and controlling the encroachments and built-up on Odai and 

Urani edges have to be encouraged to effect a smooth and effective functioning of the 

drainage system. 

203. In accordance with the above, the municipality shall desilt the primary drains on a regular 

basis before the onset of the monsoon. The construction of new drains and missing links 

shall be taken up on priority. Moreover, it is recommended that to construct fencing height 

of 2m along natural drain both sides. The details of future requirements of storm water 

drains are illustrated in Table 8.6. 

Table 8.6: Requirement until 2026 in Storm Water Drains 


Upgradation of Kutcha to Pucca 

Kutcha to Pucca Open km. 69.27 

Kutcha to Pucca Closed km. 25.19 

New Pucca Open Drains km. 73.74 

New Pucca Closed Drains km. 22.06 

Lakes conservation /Tanks regeneration and Nalla 

strengthening 

Water Bodies Conservation Nos. 6 

Desilting and Strengthening of Primary Drains km. 13.81 


204. Improvement Works and Construction of Tertiary Drains. Improvement works in the town 

shall mainly comprise of up-gradation of kutcha drains to pucca drains. It is proposed to 

construct tertiary drains for the major arterials and important roads to increase the 

coverage and to facilitate proper draining of storm water into natural drains. Maximum 

length of the new formations shall be pucca closed drains. 

73





Table 8.7: Goals and Service Outcomes – Solid Waste Management 

S.No Goal 2011 2016 2026 

1 Collection with in the Town 100% 100% 100% 

2 Door to Door Collection - % 100% 100% 100% 

3 Source Segregation - % 75% 100% 100% 

4 Collection - % 90% 100% 100% 

5 Scientific Disposal 80% 100% 100% 

6 Preparation of Manure 25% 50% 100% 

7 Cost Recovery of O & M -% 50% 75% 100% 

8 Private Sector Participation Primary 

collection 

100% 

Secondary 

collection and 

Maintenance of 

disposal site 

Primary, 

Secondary and 

Maintenance of 

disposal site 

206. Existing Service Level. Storage of waste at source is one of the important 

recommendations of MoEF. The introduction of door-to-door collection by the 

municipality has led to implementation of source segregation. The system of primary 

collection is partly privatized and the private contractor and the rest cover about 25 percent 

of the households of the town by the Municipality. The households store the un-segregated 

waste in open containers and dispose off the same at the community collection points. 

Recovery of waste that is saleable such as newspaper, glass bottles, and recyclable plastic 

is observed in the domestic sector. Similar to the domestic households, major hotels and 

restaurants also store waste in open containers. 

207. Improvement Strategies. Highest priority has to be accorded for segregation and storage at 

source irrespective of the area of generation so as to facilitate an organized and 

environmentally acceptable waste collection, processing and disposal. Source segregation 

of recyclable and biodegradable (organic waste) also provides an efficient resource 

recovery. 

208. In order to achieve the above objective, a ‘Bin system of Solid Waste Storage’ at source is 

being recommended. As per this system, each households shall be directed to keep 

separate bins/ containers for biodegradable and non-biodegradable waste generated within 

their premises. 

209. The bins can be of 10-15 liters capacity made of plastic/ reinforced plastic/ LDPE or metal 

bins of individual choice, but should be provided with lid. The segregated waste so stored 

in these bins will have to be transferred to the dumper placer provided for each area. The 

specifications of segregated waste are summarized in Table 8.8. 

Table 8.8: Details of Specification of Segregated Waste 

Storage of Segregated waste 

S. No. Source 

Bio-Degradable Non-Bio-degradable 

74


S. No. Source 

Storage of Segregated waste 

Bio-Degradable Non-Bio-degradable 

1 Households 10-15 litres capacity plastic/ A bin or Bag of suitable 

reinforced plastic/ LDPE/ metal 

bin with lid 

Size 

2 Hotels, 

60 litres capacity-LDPE /HDPE A bin or Bag of suitable 

Restaurants 

Size 

3 Shops, Offices, Suitable container not 

A bin or Bag of suitable 

Institutions exceeding 60 litres 

Size 

4 Market Stalls 40-60 litres bin-LDPE/HDPE A bin or Bag of suitable 

size 

5 Function Halls Bin/ Skip matching to 

A bin or Bag of suitable 

Municipal Collection system size 

6 Hospitals, 60 litres capacity bin for non- Store waste as per Bio- 

Nursing homes infectious bio-degradable waste medical Waste Mgmt 

Handling Rules 1998 

7 Construction/ - Store with in premises 

Demolition waste 

and deposit in the 

notified Site by the local 

body or to the municipal 

Vehicle 

8 Garden Waste Store with in premises Deposit in large 

community bin or to the 

municipal vehicle 

210. Construction waste has to be stored at the premises of the construction either in skips or in 

suitable containers and has to be directly emptied to the notified disposal site by the 

generator. Meat and fish markets should store waste in non-corrosive bins of maximum 

100 liters capacity each and transfer contents to large container to be kept at the market 

just before lifting of such large containers. Slaughterhouses should keep separate 

containers for animal waste and other wastes. It is also being recommended that this 

system of source segregation and storage is encouraged through community education and 

awareness campaigns and hence no capital investments are envisaged in this regard. 

211. Primary Collection & Street Sweeping. Waste is generally collected door-to-door by 

either the municipal or the private contractor. This waste collected is deposited at 

collection points except in areas where door-to-door collection is not implemented. In such 

areas, people dispose the waste into the dustbins located at every odd point on the roads. 

The community storage facilities comprise of all types of collection bins such as concrete, 

steel and masonry bins, including the garbage chowks. The average road length per 

conservancy worker in Karaikudi is about 720 m as against the desirable norm of 300 m. 

212. Improvement Strategies: - The following measures have been recommended for improving 

the primary collection practices of Karaikudi. 

(i) Implementation of 100 percent ‘Door-to-door collection’; 

(ii) Installation of ‘Community Storage Bins’ in areas where door-to-door collection 

could not be implemented. 

(iii) Introduction of multi-bin handcarts/ Tri-cycles. 

(iv) Placement of dumper containers of sufficient number in markets and ensuring that 

all the vendors place the waste in the containers. 

75


(v) Introduction of bio-medical waste management facility with support from Indian 

Medical Association. 

213. It is recommended that the community be involved in primary collection through 

segregation at household level to minimize the number of waste handling operation. Nonbiodegradable 

waste shall be collected separately from premises where door to door 

collections are organized. Present system of primary collection should be supplemented by 

introducing multi-bin carts (Push carts / Tricycles) covering the entire area of the town of 

which 80% will be handled by private contractors and the rest by the municipality. The 

details of proposed primary collection system are summarized in Table 8.9. 

Table 8.9: Details of proposed primary collection system 

Mode of Area of collection Primary Collection 

collection 

Vehicle 

Door to Door 1. Residential Multi-bin cart/ tricycle- 

colonies of High with 2 bins for 

and Middle income Biodegradable waste and 

group 

1 for recyclable 

2. Hotels/ 

Restaurants 

Large Fruit and Vegetable 

Community Markets/ Transfer 

Bin System Stations 

Small Slums/urban poor 

Community Colonies 

Bin System 


Closed vehicle to collect 

Biodegradable 

Carrying bins to Transfer 

Point 

Carrying bins to Transfer 

Point 

Secondary storage 

1. Bio-degradable in 

Skips/ wheel containers 

2. Non-biodegradable- 

Sell or hand over to 

waste collector 

Direct transport to 

Disposal site 

Skip / Dumper Placer 

Transfer contents of 

biodegradable to 

community bins 

214. Since further areas and eventually the entire town are proposed to be brought under 

privatization, hence there would not be any further requirement to induct conservancy 

workers. The existing street sweeping operations in Karaikudi are satisfactory and to 

ensure operational efficiency of the system, the following measures are suggested. 

(i) Markets and other areas of the city shall be swept at least twice a day and 

sweeping should be done on Sundays and holidays in core areas and denser areas. 

(ii) Sweepings shall be collected separately as degradable and non-biodegradable 

waste and deposit in containers kept at various locations and a separate crew 

equipped with appropriate implements may do de-silting of larger drains. 

215. Collection & Transportation. There are 32 secondary collection points, and a fleet of 

vehicles comprising of tractor-trailers and mini trucks numbering six in total. On an 

average, each vehicle makes three trips a day and around 70.8 percent of the waste is 

transported to the disposal site. 

216. Improvement Strategies. In view of the criticality of the information on vehicle movement 

in assessing the collection and disposal efficiency of the local body, it is recommended 

that a standard register at the disposal site be maintained. The register should contain 

information on each of the vehicle trips. A summary of this information shall be prepared 

at the end of the day, to be verified by the health officer. 

76


217. It is also recommended that Dual Loaded Dumper Placers (DLDPs) be introduced to 

improve the collection efficiency and to cover 80 percent area of the town in phased 

manner. The introduction of Dual Loaded Dumper Placers shall eliminate the need of the 

Secondary Collection Points except in places where Dual Loaded Dumper Placers cannot 

be introduced. Instead of these collection points, in the end, transfer stations with 

advanced segregation and recycling facilities may be introduced. 

218. Requirements. Additional five Dual Loaded Dumper Placers with 19 numbers of 

containers will be required for collection of approximately 53 tons of waste that shall be 

generated in Karaikudi by the year 2026. The details of future requirements of solid waste 

management are presented in Table 8.10. 

Table 8.10: Requirement until 2026 in Solid Waste Management 


Primary collection 

Hand Carts Nos. 20 

Push Carts (Street Sweeping) Nos. 258 

Secondary collection 

Dumper bins (7 cum) Nos. 19 

Transportation Vehicles 

Dumper Placer Nos. 5 


219. Disposal Improvement Strategies. The present waste disposal sites are used for simple 

dumping, and do not conform to government regulations. Under the Project, it is proposed 

to have a compost plant and a scientific sanitary landfill, to treat the organic and inorganic 

waste, respectively. Improved collection procedures and a move towards segregation of 

waste at source will assist the composting process. Existing waste disposal sites will be 

developed into proper sanitary landfill in compliance with the Supreme Court guidelines 

and the Solid Waste Handling Rules (2000) 

220. The characteristics and quantity of solid waste generated in the town primarily influence 

the disposal options. A review of the availability of solid waste sample indicates that 

nearly 40% of the waste generated in Karaikudi is organic nature. In terms of the quantity 

around 41.51 tons of waste is generated every day and is expected to go up 53.32 tons by 

the year 2026. Considering these aspects, it is recommended to develop a landfill site and 

composting site for safe disposal of solid waste of Karaikudi. The disposal strategies are: 

(i) Compost the organic fraction of the waste 

(ii) Sanitary land filling of inorganic fraction of waste and the compost rejects 

221. Requirements. Area requirements for the landfill sites are worked out based on the 

generation trends and sustainable waste management practices. Karaikudi shall be 

generating around 53.32 tons of solid waste at a rate of 480 gm/ capita/ day by 2026. The 

base year (2005) waste generation trends when projected to the design year 2026, 

Karaikudi shall be requiring a total of 9.00 acres (for a generation 53.32 tons per day) of 

landfill area and 1 acre for composting. 

77


222. The above analysis is based on CPHEEO design assumptions for sanitary landfills, 

wherein a landfill height of 5 m and a bulk density of 0.85 tons/ m 3 are assumed. However, 

the actual height of landfill depends on the geological/ geographical conditions of the site 

and technology of landfill development. 




Table 8.11: Goals and Service Outcomes –Roads, Traffic and Transportation 

S.No Goal 2011 2016 2026 

1 Road Network as % of Total 

Area 

12% 15% 15% 

2 Average Speed -km/’h with 

in the town 

20 30 35 

3 Sidewalks length to Total Half of the 75% of the 95% of the 

road length 

requirement requirement requirement 

4 Road accidents Reduced by Reduced by Reduced by 

25% 

50% 

70% 

Roads Coverage 

1 Municipality 80% 100% 100% 

Road Safety 

1 To reduce traffic accidents by 

traffic management measures 

With in the Town 

100% 100% 100% 

Parking 

1 Construction of parking 

complexes at proposed 

locations 

100% 100% 100% 

Decongestion 

1 Development of Outer Ring 

Road 

100% 

224. About 6 percent of the total area of the town is under roads with a total length of about 

154.9 km. 94.6 percent of the roads are surfaced. Accordingly, strategies are formulated to 

have 100 percent coverage of surfaced roads including up-gradation of roads. The 

percentage of concrete roads in the town is at 5 percent and since these Cement Concrete 

roads are provided with minimum widths in core areas, the overall system get affected 

with load and pressure on the remaining roads resulting in frequent O & M costs and 

traffic congestion. The deficiencies in Karaikudi with respect to the road infrastructure 

pertain mainly to the width of roads and density of roads. 

225. Roads planning. The newly developing areas lack the facility and shall increase to a 

minimum of 10 percent though the norm can be in the range of 15-20 percent. The road 

widening projects can provide succor to a certain extent in increasing the area under roads, 

but is limited to certain commercial corridors only. Roads planning shall also ensure that 

road; parking and traffic infrastructure provision matches the city’s present and future 

needs for both private and public transport. The details of future requirements of roads and 

traffic & transportation are summarized presented in Table 8.12. 

78


Table 8.12: Requirement until 2026 in Roads and Traffic & Transportation 


Upgradation 

BT to Concrete km. - 

WBM to Black Top km. 3.50 

Earthen to Black Top km. 0.65 

Relaying of Black top km. 27.88 

New Formation 

Concrete km. - 

Black Top km. 36.87 

Traffic and Transportation 

Widening/ Strengthening km. 5.00 

Junction Improvement Nos. 8.00 

Bye-pass Road (Regional Outer Ring Road) km. 20.00 


226. Asset Rehabilitation. Upgrading shall be undertaken to extend, refurbish and enhance the 

roads. Plans shall be phased to optimize cost and surface condition and shall include 

upgrading earthen roads to bituminous-topped roads. This phased up-gradation would 

considerably reduce the costs on new formations. 

227. Widening and Strengthening of Road structures. With due consideration to the growing 

traffic intensity it has been proposed to upgrade all the major roads with specific focus on 

the State and National Highways and some major roads. It is recommended that the road 

from old bus stand to Periyar statue intersection should be widened. 

228. Intersections. There are four important junctions in the town where major roads need 

improvements. These are: 

(i) Periyar statue intersection 

(ii) Second Beat intersection 

(iii) First Beat intersection 

(iv) Kallukatti Intersection 

229. The traffic from Devakkottai approach is routed through the adjoining street and joins 

Madurai road at first beat junction. An alternative road on eastern side is being proposed to 

relieve congestion. 

230. The moffusil buses from Madurai, Sivaganga and Devakkottai are diverted along V.O.C. 

Road, Kalanivasal road and new bus stand road to reach the new bus stand. The detour 

caused by this is about 5 Km, which has to be minimized by suggesting a suitable alternate 

route from old bus stand to the new bus stand. 

231. The entire circulation with in the city has to be examined and if necessary suitable traffic 

circulation plan has to be suggested with a view to minimize the inconvenience to the 

vehicular traffic. 

232. Even at predominant bus stops where enough road width is available, recessed bus bays 

79


are not provided in this town. Buses that halt at bus stops on the carriageway are found to 

create problems of traffic congestion. 

6. Street Lighting 



Table 8.13: Goals and Service Outcomes – Street Lighting 

S.No Goal 2011 2016 2026 

1 Energy saving mechanisms 80% 100% 100% 

2 Adequate lighting in Non-lit areas 80% 100% 100% 

234. The strategic intervention in this sector is increasing the number of lampposts in the wards 

identified to reduce the average spacing between lampposts in the town to below 30m. 

Further, measures are to be adopted to minimize the power consumption charges, which 

are observed to be on the higher side. The details of future requirements of street lighting 

are summarized presented in Table 8.14. 

Table 8.14: Requirement until 2026 in Street Lighting 


Street Lighting 

Tube Light Nos. 2,324 

High Power Nos. 377 

Power Saver Switches Nos. 5 

High Mast Lamps Nos. 4 


235. Further, to improve upon the O & M of the street lighting it is recommended to mechanize 

the system and involve private sector in the same. To reduce the power consumption, new 

technology bulbs are to be introduced with dimming systems during non-peak hours of 

operation to reduce the power consumption, which will be discuss in brief in Chapter X. 

7. Poverty Alleviation 

236. Goals and Service Outcomes: The goals and service outcomes based on the proposed 


Table 8.15: Goals and Service Outcomes – Poverty Alleviation 

S.No Goal 2011 2016 2026 

1 Water supply network coverage for 


90% 95% 100% 

2 UGD coverage for slum households 60% 100% 100% 

3 Adequately lit slums 100% 100% 100% 

4 Adequate road link for the slums 100% 100% 100% 

80


237. Beneficiary Selection. Identify the target beneficiaries based on a socio-economic survey 

and initiate efforts to form Community Development Societies (CDSs) covering the target 

population and implement guidelines on the lines of SJSRY in beneficiary selection. 

Encourage the community to avail the benefits under the various slum development 

programs by developing linkages with the lead bankers and ensure that the flow of 

communication between the various actors and the community structures through a proper 

reporting procedure. 

238. Program Monitoring. While implementation of the program is important the monitoring 

of the same is more important for continuing of the process. This ensures the success of 

the program and hence further participation of the communities over the years, which will 

only lead to complete poverty alleviation. 

B. Project Identification for Service Delivery 

1. Cost Estimation - Water Supply 

239. Source Development. To meet the future requirements, source of water has to be further 

harnessed from Sambai Oothu either by increasing the yield from the existing bore wells 

and with additional bore wells at the head works to take the total yield to about 9.87 MLD 

by 2011 and to 11.49 MLD by 2026. 

240. Replacement of Pumping Main. A replacement is required for 4.31 km of 6” AC and 8” 

Cast Iron pumping mains at Devakottai Rastha Bore Wells. These pipes are damaged and 

corroded. The new pumping main has to lay from source to elevated storage reservoirs for 

supply of additional water by 2026. 

241. Storage Adequacy. While storage capacity is adequate at 0.52 and 0.57 capacity/ demand 

ratio in middle level and low level zones, the high level and Kallukatti zones have 

demand/ capacity ratio of 0.15 and 0.24 respectively against the needed 0.33. For the 

envisaged increase in supply by 2026, there would not be any requirement for additional 

storage. 

242. Extension and Replacement of the Distribution System. The present distribution system is 

under four zones, which however are not able to cater to the demands of tail end users. To 

cater the increasing demand and to effect an equitable distribution of water in all the areas 

of the town, it is proposed to create seven zones from the existing four zones. The scheme 

puts the requirement of an additional 81.25 km of distribution network, which will take 

care of the present uncovered areas of Kalanivasal, Subramaniapuram, Sudamanipuram, 

Senjai and Kalavaipottal area and for the year 2026. This has been arrived at assuming that 

about 80 percent of the total road length by 2026 will have the distribution network. 

243. The replacement works shall be in Subramaniapuram, Pillaiyar Koil Street, Shanmugam 

Pillai Street, Pavendar Salai and Alagappan Ambalam Street and Pavendar Salai to a total 

length of 10.1 km. 

244. Treatment Facility. Since water is drawn from ground water source, an artesian spring, 

81


which has recorded negligible pollutants, pre-chlorination is the only type of treatment 

done before water is pumped into the elevated storage reservoirs. However, with 

increasing urbanization, there has been an increasing threat felt by the citizens of 

Karaikudi to this only source of water in the form of seeping of sewerage and sullage 

contaminating the aquifer of Sambai Oothu running below the town. So considering the 

seepage of wastewater in to the ground water it is essential to have treatment plant in 

2013. 

245. The capital costs estimated for the proposed interventions are to the tune of Rs. 764.60 

lakh. The investment for the water supply sector is based on the requirements and demand 

for the year 2026. Accordingly, the gaps are identified and the projects are identified 

broadly as source development, storage capacity augmentation, pumping main, and 

augmentation of distribution network, rehabilitation for existing network. The total 

investment towards water supply is presented in the Table 8.16. 

Table 8.16: Details of Identified Investment in Water Supply Sector 

Component 

Total investment up to 2026 

Rs. Lakh 

Source development till 2026 (4.89 MLD) 7.34 

Feeder mains and Transmission Mains (4.31 km) 34.48 

Additional distribution network (81.25 km) 162.51 

Rehabilitation for existing Network (10.10 km) 20.20 

Treatment capacity (2026) (11.49 MLD) 540.07 

Total 


764.60 


246. An investment of Rs. 4,376.46 lakh (base cost) for provision of under ground drainage 

system is envisaged in lieu with the environmental aspects i.e., pollution of the fresh water 

aquifer beneath in the region. The investment components include sewer length of 156.74 

km, STP, land and electrical equipment and public conveniences for slums. The total 

sewerage and sanitation investments are presented in Table 8.17. 

Table 8.17: Investments for Sewerage and Sanitation 

Component 


Rs. Lakh 

Under Ground Drainage 

Sewer network (156.74 km) 2,351.16 

STP & Land and Electrical equipment (9.19 MLD) 137.89 

Road Rehabilitation due to Water Supply and Sewerage 

1,567.44 

Project (156.74 km) 

Public Convenience in Slum (27 ISP units) 319.97 

Total 4,376.46 

Source: - Analysis 

82

3. Storm Water Drainage & Rejuvenation of Water Bodies 


247. The investments are in line with up-gradation and new formation of roads. The 

components involved in this sector are up-gradation of the existing drains and new 

formations. The estimated cost for extension and augmentation of storm water drainage 

including the improvement measures to odais is about Rs. 120.0 lakh. While Rs. 1259.37 

lakh is proposed for up-gradation of drains, Rs. 1259.9 lakh is proposed for new 

formations. Rs. 103.58 lakh is proposed for desilting and strengthening of odais and 

ponds. The proposed investments towards drains and nallas are presented in Table 8.18. 

Table 8.18: Investments for Drainage and Lake Development 

Component 


Rs. Lakh 

Up gradation of Kutcha to Pucca 

Kutcha to Pucca Open (69.27 km) 831.18 

Kutcha to Pucca Closed (25.19 km) 428.19 

New Pucca Open Drains (73.74 km) 884.88 

New Pucca Closed Drains (22.06 km) 375.02 

Total 2,519.27 

Lakes conservation /Tanks regeneration and Nalla 

strengthening 

Tanks/ Lakes conservation (6 nos.) 120.00 

Desilting & Strengthening of Primary Drains (13.81 km) 103.58 

Total 223.58 



248. The total investment identified for this sector is Rs. 389.07 lakh. The requirements at the 

disposal site are planned for the horizon year 2026. The components for primary and 

secondary collection are for the immediate requirements and the investment requirement 

is. Rs. 80.63 lakh. Rs. 50.00 lakh of identified investment is for procuring Dual Loaded 

Dumper Placers and Rs. 10.45 lakh for the dumper bins. The major investment is towards 

development of landfill site and compost yard (Rs. 308 lakh). Table 8.19 gives the 

investment for solid waste management sector. 

Table 8.19: Investments for Solid Waste Management 

Component 


Rs. Lakh 

Solid Waste Management 

Hand Carts (20 nos) 1.60 

Push Carts (258 nos) 18.58 

Secondary collection 

Dumper bins (7 cum) (19 nos) 10.45 

Dumper Placer (5 nos) 50.00 

Development of Compost (1 acre) 52.50 

Development of Land Fill Site (9 acres) 255.94 

Total 389.07 


83



249. Rs. 93.53 lakh is proposed for up-gradation of existing roads to Bituminous surfacing, Rs. 

35.28 lakh is proposed for widening and strengthening of identified road stretches in the 

town. New formation is proposed in undeveloped areas at a cost of Rs. 1,179.85 lakh. The 

cost of development of bypass road is Rs. 4,000 lakh and has to be borne by highways 

department. The investments for roads and traffic management are presented in Table 

8.20. 

Table 8.20: Investments for Roads and Traffic Management 

Component 

Up gradation 


Rs. Lakh 

WBM to Black Top 52.53 

Earthen to Black Top 13.00 

Relaying of Black top 27.88 

New Formation 0 

Black Top and Heritage Walks 1,179.85 

Total 

Traffic and Transportation 

1,273.26 

Widening/ Strengthening 35.28 

Junction Improvement 40.00 

Bye-pass Road (Regional Outer Ring Road) 4,000.00 

Total 


4,075.28 


250. Rs. 708.25 lakh is identified for the provision of additional street lights in Karaikudi. The 

Retrofit lights are introduced instead of tube light; to reduce energy cost. Table 8.21 gives 

the investment for street lighting sector. 

Table 8.21: Investments for Street Lighting 

Component 


Rs. Lakh 


Retrofit Light 580.97 

High Power 109.19 

Power Saver Switches 0.23 

High Mast Lamps 17.86 

Total 708.25 


7. Other Identified Projects 

251. A total investment of Rs. 260 lakh is identified for funding various other projects as 

identified by the municipality in the end. This is towards construction of commercial 

84


complexes, construction of parks, plays grounds and electrical crematorium, pedestrian 

walks of all Cettinadu heritage buildings and system modernization. 

Table 8.22: Investments for All Other Project 

Component 


Rs. Lakh 

Construction of Commercial Complexes 120.00 

Parks and Play Grounds 60.00 

System Modernization 10.00 

Electrical Crematorium 70.00 

Total 


260.00 

85

A. Overview 

IX. ASSET MANAGEMENT PLAN 


252. This asset management has the objective of defining and describing the key elements, and 

principles of an Asset Management System. This chapter will deal with the elements that 

are essential in an asset management program for movable and immovable infrastructure. 

More specifically road networks, sidewalks, water supply networks, pumping, storage, 

treatment facilities and storm water drains. 

253. While the need for Asset Management is clearly felt, it is equally important to have 

appropriate management information on asset condition, infrastructure costs and 

performance, and the consolidated requirements for repairs and maintenance, as well as 

appropriate maintenance standards. 

1. Asset Inventory 

254. The first stage of implementation of an asset management program for municipal 

infrastructure relies on the essential element of inventory. The location of some of the 

available assets is presented in Map 7.1. For each element in each category of 

infrastructure it is fundamental to know about all as mentioned bellow: 

(i) Available Assets 

(ii) Location of Asset 

(iii) Age of Asset 

(iv) Quantity of Asset 

(v) Physical Characteristics of Asset 

255. Infrastructure Assets will include all movable and immovable equipment, properties 

including but not restricted to sectors like water supply, drainage, sewerage, solid waste 

management, roads, street lighting etc. Unlike other assets of the municipality, these assets 

undergo constant use, wear and tear, addition, repair etc. This correspondingly changes 

their values and hence a constant value updating is necessary. 

2 Information of Municipal Assets. 

256. Water Supply. The water supply assets basically comprise of all the assets from the 

headwork’s, treatment plant, sump, transmission mains, pumping mains, feeder mains, 

distribution mains and sub mains, including all valves, connections, meters and all related 

facilities for the efficient delivery service of water. 

257. For Karaikudi Municipality, there are different types of fixtures related to the intake from 

groundwater. There are 29 bore wells located mainly at headworks and in areas like 

Kalanivasal, Devakottai Rastha, Pappa Oorani. These were constructed as early as 1980. 

There are 348 Public taps in the town. Most of them are as old as 1970. There are also 6 

86


open wells. These are located at 100 ft Road, Ice well area, Sambandha Mudaliar street, 

Anna Nagar street, etc. There are 14 hand pumps located in wards like 1, 4, 8, 11, 22, 5, 

10, 18, 20, etc. currently there are also 5 OHT Tanks. The assets of water supply are 

presented in Table 9.1. 

Table 9.1: Assets of Water Supply Details 

Asset Type Ward/Location Numbers Construction 

Period 

Bore Head Works Site –Out 

22 1980-2000 

(all 220 ft) side the Municipal Limit 7 1980-1990 

1,3,4,19,22,29 in areas like Kalanivasal 9 1990-2000 

area, Devakottai Rastha, Pappa Oorani 4 2000 

Public Taps All the wards spread over all the areas of 11 1970-80 

the town 

67 1980-90 

109 1990-00 

Open Wells 5 1930-40 

Hand pumps In areas like Servar Oorani 12 1980-90 

Kalavai Pottal, Kalanivasal, Periyar 

Street, Rajendran Street, in wards like 

1,4,8,11,22,5,10,18,20,22,29,30,34,35 etc 

14 1990-00 

Over Head Locations like Saththappa Park, 

3 1975 

Tank Maharnonbu Pottal, Sekkalai, Kalukatti 

Area and subramanyapuram 

1 1985 

Distribution In Wards like 14, 7, 23, 15 1.55 km 1970 

Pipes 3”, 4” In all Wards especially closer to OLD 53.28 km 1971-1980 

of AC, CI, Town like 22, 23, 27, 24, 15, 13 etc 

PVC, type In all wards 14.35 km 1981-1990 

In all wards 9.88 km 1991 

Valves Scour Valves Total 124 

1970-1995 

Scour Valves Unused 124 

Air Valves Total 8 

1970-1995 

Air Valves Unused 8 

Sluice Valves Total 6 

1970-1995 

Sluice Valves Unused 6 

Pumps Head works 

75 HP 2 1975 

60 HP 1 1975 

20 HP 2 1975 

15 HP 2 1975 

12.5 HP 3 1975 

10 HP 1 1975 


258. Sanitation. The town does not have any sewerage system and hence the sanitation is 

through septic tanks and low cost sanitation units. The local body owns 18 public 

conveniences in the town with 41 seats and another 5 Pay & Use toilets with 40 Seats. 

Recently it has also added another 64 seats through ISP project. 

259. Land and Buildings. Buildings are of 2 types; remunerative and non-remunerative. The 

details of remunerative and non-remunerative assets are presented in Table 9.2 and Table 

9.3. 

87


Table 9.2: Details of Remunerative Assets 

Ward 

No. 

Asset Name Type Location Market Value 

1 Sq. ft in Rs. 

10 Traveler’s Bungalow Building Govindarujulu Road 9.50 

22 Old Bus Stand Building Building Kovilur Road 7.40 

15 Municipal Market Building Sekalai Road 8.50 

22 Kalluketti North Shopping Building Kaluketti 9.50 

22 Kalluketti West Shopping Building Kaluketti 9.50 

22 Kalluketti East Shopping Building Kaluketti 9.50 

22 

Restaurant in Old Bus 

Stand 

Building 

Kovilurar Street 

7.00 

34 Sanitary Workers Quarters Building Ganesapuram 

22 Pay and Use Latrine Building Old Bus Stand 

1 Slaughter House Building Ganesapuram 

8 New Bus Stand Building 100”Road 10.00 

17 Daily Market Building Sekkalai Road 8.00 

8 

Restaurant and Shopping 

Complex 

Building 

8.00 

22 South Police Station Building 7.00 

29 Fire service Building 5.00 

8 Petrol Bunk Building 8.00 

11 Choikkan Urani Shops Building 7.50 


260. Remunerative assets have been used to estimate the additional resource that could be 

mobilized and is presented in the Chapter X 

Table 9.3: Details of Non-Remunerative Assets 

Ward No. Asset Name Type Location 

Outer Limit Headworks RCC Koviloor Road 

17 M.L.L.M.Maternity Centre RCC Church 1st St 

6 Meyyappa Maternity Centre RCC Senjai Oorani North 

8 Office Building RCC 100 Ft. Road 

21 Clock Tower RCC Amman Sannathi 

29 Deaf and Dump School Tiled Railway Feeter Road 

36 Senjai School AC Senjai 

27 Naganathan School Tiled Chellappa Chettiar Street 

19 Nallaiyan Asari School AC Nallaiyan Asari Street 

28 Sivan Koil School Tiled Pasumadam Street 

12 Muthupattianam School Tiled KamanPandigai Street 

1 Kalanivasal School Tiled Kalanivasal 

8 Ramanathan Chettiar School Tiled Church 6 th Street 

11 Muthupattianam Reading Room RCC Muthupattinam 1 st Street 

12 Other 11 Reading Rooms RCC Different locations 


261. Lands owned by Municipality are of different types such as parks and play fields for 

recreation, burial Grounds, burning grounds etc. Table 9.4 and Table 9.5 give the details 

of parks and playgrounds owned by Karaikudi municipality. 

88


Table 9.4: Details of Parks 

Ward No Park Name Area 

Ha 

2 Sathappa Park 0.59 

8 N.S.Ganapthi Park 0.96 

9 KPW Park 0.20 

12 SMAR Park 0.02 


262. More than 3-lakh Sq. ft of open space as playgrounds is available with the municipality. 

All these areas belong to the municipal schools. 

Table 9.5: Details of Play Grounds 

Ward No. Play Ground Name Area 

Sq. ft 

36 Subash Nagar Municipal School 196,000 

27 Sekkalai municipal elem. School 31,500 

19 Nellayanasari Street Municipal Elementary School 30,000 

28 Sejari Municipal Higher Elementary School 67,360 

12 Municipal Sivan Koil Elementary School 154,569 


Other Assets 

263. Other assets of the municipality include its solid waste management facilities of disposal 

site on the Devakottai road (13.7 acres) and a fleet of 5 vehicles utilized for the process. It 

currently also owns 19 pushcarts, 72 dustbins etc for the primary collection. 

264. In all Karaikudi municipality has with it 10 vehicles including 1 lorry, 1 tractor, 4 mini 

lorries, 2 power tillers, 1 sullage tanker and 1 jeep. It also owns about 170 km of roads of 

which 56 percent is BT surfaced. 3,827 street light poles and the associated fixtures also 

form the assets of the municipality. 

3 Strategies. 

265. Condition Assessment Survey (CAS) establishes the existing condition of the asset and 

hence is a benchmark for comparison, not only between different assets, but also for the 

same asset at different times. Condition Assessment Survey records the deficiencies in a 

system or component, the extent of the defect, as well as the urgency of the repair work; in 

some cases, the estimated cost of repair is provided at the time of inspection. This type of 

systematic inspection is essential for asset management as it provides data for the 

"maintenance management", "service life prediction" and "risk analysis" enabling 

technologies, mentioned earlier. 

89

Map 9.1: Municipal Assets in Karaikudi 


90


266. The data collected in a Condition Assessment Survey should reflect the change in the 

reliability of the system as a whole. This implies that the state or condition of a system 

inspected should then be linked to the change in reliability of the system or its 

components. In this way, programmed maintenance and repair for a given system can be 

based on updated reliability estimates. 

267. While the above-mentioned three tools are mostly innovative type, there are specific 

Information technology tools that are necessary for accurate generation of MIS. 

268. Creating a Geographical Information Systems (GIS) database of the assets identified. 

269. Global Positioning Systems (GPS) technology assists for rapid and accurate data 

collection, precise identification of building or service locations, calculations of areas and 

lengths, estimation of building height, and more importantly the easy, clear and 

unambiguous documentation of physical location of identified defects and potential 

problems. 

91

X. RESOURCE MOBILIZATION INITIATIVES 

A. Scope in Savings and Revenue Generation 

1. Infrastructure 


270. The main objective of the Business Plan is to generate revenue through the non-traditional 

sources with minimum investments. There is enormous scope to control expenditure in 

water supply, solid waste management and street lighting sector etc, the analysis will find 

the options for the replacement of inefficient existing pumps in terms of energy efficiency 

through Cost Benefit Analysis. Regarding street lighting, the analysis will be towards 

introducing technology of street lighting with the help of private participation. 

2. Assets 

271. The major assets for the municipalities are the immovable assets. This is one potential area 

to develop the asset values and increase the municipal revenue. The analysis includes find 

out the various options to make use of vacant lands on BOT basis and revising of rents for 

the remunerative assets up to market values. 

B. Sector Wise Savings 

1. Water supply 

272. Energy Saving. A significant number of municipalities in Tamil Nadu rely on motive 

power for conveying water, either through significantly long distances (typically source to 

distribution point) or to meet contour gradient requirements within the distribution system. 

Pump Stations or Booster Stations achieve this objective by providing the necessary 

motive power to increasing the energy of the fluid to ensure water supply and distribution 

at required pressure and quantity. 

273. Smooth functioning of the pump stations is highly critical, since they operate on a 24-hour 

basis and virtually form the heart of a system. Such pump stations consume a significant 

amount of electricity and result in high O & M costs for the Municipality that owns and 

operates such pumping system. It is common that over time, pumps and motors undergo 

severe wear and tear resulting in reduced operating efficiencies. This directly translates 

into higher power consumption for the same amount of output or even reduced output, 

which further results in a tangible increase in spending. 

274. Energy Audit is an effective management tool to combat and control spiraling O &M and 

energy costs and to enable the municipality effectively uses the system at the optimum 

cost possible. There is scope to control expenditure with effective energy management, 

leak detection and unauthorized tap connections. 

92


275. The main source of water supply to Karaikudi town is Sambai Oothu, the groundwater 

artesian spring located outside the municipal limits on the Madurai road. There are 7 deep 

bore wells near the head works and two bores from surrounding area. The water is 

extracted into the sump at the head works of capacity 2 lakh litres at source. This water is 

pumped by 2 centrifugal pumps with capacities of 75 HP and 60 HP into the feeder mains 

of 12-Km length reaching the service reservoirs. The age of these pumps are around 5 

years old with a designed LPM of 4,500 (75 HP) & 3,000 (60 HP). The cost of energy 

consumed during the year 2004-05 was Rs. 33.88 lakh. Cost benefit analysis has been 

worked out to compare the with the ideal efficient pump energy cost against existing 

pumps energy cost. 

276. Following criteria was adopted for replacing the inefficient existing pump. 

(i) Age of the pump is more than 15 years; 

(ii) Efficiency of the pump is less than 50 percent; and 

(iii) Net energy saving is more than 10 percent. 

277. Cost benefit analysis has been worked out to compare the energy cost of new pump with 

existing pump for a period of 15 years. The net energy saving percentage is more than 10 

percent from the current level and hence is recommended for replacement. The working 

details are presented in following table. The replacement of existing pump would fetch 

additional revenue to the tune of Rs. 4.91 lakh in 2007, there after it will increase. The 

efficiency of pumps and energy savings are presented in Table 10.1 and Table 10.2. 

Table 10.1: Estimation of efficiency of pump 

Description 

Ideal Condition 

Unit Value 

Total Capacity of Pump HP 150 

Power Consumption per HP/hour KW 0.747 

No. of Hours of Pumping hours 20.00 

Total Power Consumption KW/annum 817,965 

Unit Rate of Power INR/KW 3.50 

Total Energy Charges per annum 

Current Status 

INR Lakh 28.63 

Total Energy Charges per annum INR Lakh 33.88 

Current Efficiency assuming Ideal is 100% % 84.50 

Annual Increment in Energy Cost % 5 

Interest Rate % 9.5 

Continue with the current Pump if net savings is < % 5.0 

Repair the current Pump if net savings is between previous 

and less than 

% 10.0 

Replace the current Pump if net savings is > % 10.0 

Age of Pump Years 5 


93

Table 10.2: Estimation of net energy saving in pump house 

Year Capital cost of 

Pump 

O & M - 

New Pump 

O & M - 

Existing 

pump 

Savings in 

Energy cost 

Cost of fund Net savings Savings 

Rs. Lakh Percent 

2007 3.60 28.63 33.88 5.25 0.34 4.91 14 

2008 30.06 35.57 5.51 0.34 5.17 15 

2009 31.56 37.35 5.79 0.34 5.45 15 

2010 33.14 39.22 6.08 0.34 5.74 15 

2011 34.80 41.18 6.38 0.34 6.04 15 

2012 36.54 43.24 6.70 0.34 6.36 15 

2013 38.37 45.40 7.04 0.34 6.70 15 

2014 40.28 47.67 7.39 0.34 7.05 15 

2015 42.30 50.06 7.76 0.34 7.42 15 

2016 44.41 52.56 8.15 0.34 7.80 15 

2017 46.63 55.19 8.55 0.34 8.21 15 

2018 48.96 57.95 8.98 0.34 8.64 15 

2019 51.41 60.84 9.43 0.34 9.09 15 

2020 53.98 63.89 9.90 0.34 9.56 15 

2021 56.68 67.08 10.40 0.34 10.06 15 



94


278. Reduction in UFW. Unaccounted for water (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. UFW includes losses, physical losses and non-physical or 

commercial losses. 

279. In case of Karaikudi property tax assessment to water connection is very low coverage 

only 43 %. Consequently, there are chances of revenue leakages through unauthorized 

/illegal connections in the town, if regularized, this would generate significant amount of 

revenue for the Municipality. Exact quantification is not possible in the absence of number 

of illegal connections in the town and hence municipality should take necessary action 

towards legalizing the illegal connections in the town. 

280. Staff. The study is also focused on existing manpower deployment at pump house and 

options of privatization (maintenance of pump house) and savings through redeployment 

of excess manpower at pump house. At pump house/head works, Karaikudi municipality 

deploys only two pump house cleaners and hence no saving is envisaged. The details of 

staff deployment at pump house is presented in Table 10.3 

Table 10.3: Manpower deployment at pump house 

Items Sanctioned post Permanent Temporary 

Pump Operator - - - 

Pump house cleaner 2 2 - 

Total 2 2 - 



281. Compared to all departments public health division will maintain maximum number of 

workers and more number of vehicles including the O & M cost. With respect to solid 

waste management, the analysis is focused on comparison of manpower with municipal 

staff to the private operator. 

282. Staff Reduction and Privatisation. There are 161 permanent staff excluding consolidated 

pay members working as sanitary workers. The average salary per month for each sanitary 

worker is around Rs. 5,000/-. Around 27 percent of workers are going to retire by 2010. 

By implementing privatisation and redeployment of additional manpower to the other 

department, it is estimated that the municipality would be saving around Rs 16 lakh per 

annum by 2010 and the details are presented in Table 10.4. 

95


Table 10.4: Saving in Solid Waste Management Sector towards Privatization 

Description 2010 2011 2012 2013 2014 2015 

Waste Handled by Municipality in Tons 31.92 

Waste Handled by Private Contractor in 

Tons 

13.28 

Total Expenditure by Municipality in 

per tone per month in Rs. 

26,450.00 

Total Expenditure by Private Contractor 

per tone per month in Rs 

4,773.70 

Per tone cost handled by Municipality 

per day in Rs. 

828.58 

Per tone cost handled by Private 

359.52 

Contractor per day in Rs 

100 % Privatization by the year 2010 

Projected Waste Generation by 2010 in 

Tones 

Total expenditure towards SWM 

(excluding Transportation) by 

Municipality per annum in Rs 

43.93 

9,654,248.69 

Total expenditure towards SWM 

(excluding Transportation) by Private 

Contractor per annum in Rs 

7,983,908.93 

Savings per annum 1,670,339 1,770,560 1,876,793 1,989,401 2,108,765 2,235,291 

2005 to 10 2010 to 15 2015 to 20 2020 to 25 2025 to 30 2030 to 35 

Existing no of filled posts (Sanitary 

workers) 

161 

Retirement of SW in duration of five 

years 


43 26 33 23 23 10 

96



283. In street lighting sector, there is large scope to minimize the expenditure towards power 

consumption and operation & maintenance. Related to street lighting the data has been 

collected as follows: 

(i) Number and types of street lighting and its operation and maintenance 

(ii) Expenditure towards salaries and power charges 

284. Energy Savings: This section reviews the current level of energy consumption, 

maintenance and establishment charges incurred in street light maintenance. Karaikudi 

Municipality maintains 3,827 light fixtures out of which around 93 percent fixtures are 

tube lights, about 5 percent sodium vapour lamps and remaining are mercury vapour 

lamps. As per the latest available data on energy consumption, the total cost of energy is 

Rs. 30.12 lakh per annum and average maintenance expenses of street lighting are Rs. 9.02 

lakh per annum.. The average cost of energy consumption per fixture is Rs. 787 per 

annum. The average maintenance expenditure per light works out to Rs. 236 per annum. 

There are 5 skilled wiremans and five helper to operate and maintain entire street lighting 

in the town and all of them are permanent employee of the municipality. Table 10.5 

provides the details on expenditure towards street lighting. 

Table 10.5: Expenditure trend in street lighting 

Items 2000-01 2001-02 2002-03 2003-04 Average 

Rs. Lakh 

Establishment 8.41 8.52 8.51 7.88 8.33 

Energy Charges 14.67 10.60 13.47 29.70 17.10 

Maintenance Expenses 6.65 8.10 6.65 14.71 9.02 

Total 29.73 27.22 28.63 52.29 34.45 


285. Energy savings in street lighting is possible through replacement of existing conventional 

tube lights with energy efficient retrofit tube lights, installing power saver devices and 

privatizing the operation and maintenance of street lighting. There are 3,554 florescent 

tube light fixtures installed in Karaikudi town. The 40-Watt fluorescent tube lights with 

ballasts will consume an additional 10-13 watts. To reduce the energy consumption, 28 

Watt T-5 retrofit tube lights have to be introduced in place of existing conventional tube 

lights. 

286. Based on the best practices followed in other parts of country, retrofit tube lights are 

proposed in Karaikudi. The new tube-lights have a higher luminary rating, longer life 

span, lower failure rate and perform better under the highly fluctuating voltage that 

plagues the town's electricity supply. Table 10.6 provides the details of retrofit tube lights 

97


Table 10.6: Salient features of Retro fit tube lights 

Description Value 

Tube type E+28 W 

Power consumption 28 W 

Power Factor 0.95 

Rated life of tube (burning hours) 18,000 

Rated life of electronics (burning hours) 50,000 

Stroking Voltage Less than 120 volts 


287. The following table presents the comparison of present conventional florescent tube lights 

with proposed Retrofit tube lights. 

Table 10.7: Comparison of conventional tube lights with retrofit lights 

Description 40 Watts Tube Light Retrofit light 

Connecting load* (W) 52.5 30 

Light output (Lm) 2,450 2,900 

Annual energy consumption ** (KWH) 211 120 

Energy charges @ Rs. 3.50/- 738 422 

Life of lamp (Hours) 


4,000 18,000 

* Including ballast loss of 12.5 W for conventional 40 Watts Tube lights. 

** Calculated for 11 hrs daily burning. 

288. Karaikudi has poor lighting levels, inappropriate operation timings, poor quality of power 

and inefficient lighting devises. 

(i) Operator switching streetlights require 1 to 1.5 hrs to operate all the switches in an 

area, resulting in some places lights are switched on/off almost 1 to 1.5 hrs prior 

and after the required time; 

(ii) Lighting levels are higher than required standards; 

(iii) During off peak hours (after 11 pm in night) lighting levels increase further due to 

increase in voltage; 

(iv) Lighting devises are not mounted properly, thus unnecessarily distributing light to 

surrounding areas and providing less light on roads and pathways; and 

(v) Selection and mounting of lamps is not done in a scientific manner, considering 

parameters like land use, type of road and illumination required as per Indian 

Standard Codes. 

289. In order to address some of the above issues in the town, power saver devises have to be 

installed. The power saver devises save energy, by regulating voltage after peak hours. 

The built in timer automatically reduces voltage from 240V to 180 V after 10 pm. It also 

can reduce voltage stepwise up to 110 V in different time slots. This action optimizes the 

illumination level after peak hours. The programmable timer switch also controls street 

lighting operating hours as per desired timings. These power savers also act as protection 

devises, which increase the life of lamps and luminaries. 

290. The replacement of existing lights proposed to replace in a phased manner for next two 

years (2006 & 2007). Separate cash flow for street lighting was prepared to ascertain the 

savings due to the replacement of new energy efficient lights and installing power saver 

98


devices. The cash flows have been worked out considering privatization of streetlights. 

291. The basis for preparing cash flows are as follows, annual increment in energy cost at 3 

percent, rate of interest at 8.5 percent and net energy savings share (profit share) between 

contractor and Urban Local Body with a mutually agreed percentage basis. In this case, it 

was assumed that the cost of savings in energy utilization was distributed between 

contractor and Urban Local Body at 80 percent and 20 percent respectively. Through street 

lighting energy consumption Urban Local Body can save a minimum of Rs. 4.94 lakh in 

2008, out of which Rs. 0.99 lakh is transferred to municipality as per the above mentioned 

profit sharing arrangement, rest with private contractor. Further details are presented in the 

following table. Existing municipal skilled staffs shall be retained for overseeing the 

private contractors operation and maintenance work and hence no savings are envisaged 

from staff reduction or redeployment. Assumption for calculating energy savings are 

presented in Table 10.8 and energy savings is tabulated in Table 10.9. The Internal Rate 

of Return (IRR) for 2012 is more than the discounted rate of 10 percent making the 

initiative viable. 

Table 10.8: Assumption for calculating energy savings 

Description Unit Value 

No. of Street Lights in the Urban Local Body Nos. 3,827 

Total Annual Energy Cost for Street Lighting INR Lakh 30.12 

Energy Cost per Street light/annum INR 787 

Standard Cost as per Case Studies (30% saving) INR 551 

Annual Increment in Energy Cost % 3 

Transfer of Savings to Urban Local Body % 20 

Rate of Interest % 8.50% 


99

Table 10.9: Energy savings in street lighting 

Year Capital Cost No. of Lights Actual Energy 

Cost 

Normative 

Energy Cost 

Rs. Lakh Nos. INR Lakh 

Net Savings Transfer of 

Savings to 

Urban Local 

Body 


Net Cash 

flow 

2006 14.54 3,827 31.02 21.72 0.00 -14.54 

2007 15.42 3,827 31.95 22.37 0.00 -15.42 

2008 3,827 32.91 23.04 4.94 0.99 4.94 

2009 3,827 33.90 23.73 10.17 2.03 10.17 

2010 3,827 34.92 24.44 10.47 2.09 10.47 

2011 3,827 35.96 25.17 10.79 2.16 10.79 

2012 3,827 37.04 25.93 11.11 2.22 11.11 

2013 14.54 3,827 38.15 26.71 11.45 2.29 -3.10 

2014 15.42 3,827 39.30 27.51 11.79 2.36 -3.63 

2015 3,827 40.48 28.33 12.14 2.43 12.14 

2016 3,827 41.69 29.18 12.51 2.50 12.51 

2017 3,827 42.94 30.06 12.88 2.58 12.88 

2018 3,827 44.23 30.96 13.27 2.65 13.27 

2019 3,827 45.56 31.89 13.67 2.73 13.67 

2020 3,827 46.92 32.85 14.08 2.82 14.08 

Total 89.35 


IRR 2012 13% 

IRR 2015 15% 

IRR 2020 23% 

100

4. Assets 


292. Details of remunerative assets owned by Karaikudi Municipality are presented in Table 

10.10. Current year demand for remunerative assets was collected from municipality and 

the same were compared with the market rental value. From the following table it is 

apparent that the municipal remunerative assets are under valued. In case of daily market, 

the annual lease is Rs. 3.83 lakh, which is very low when compare to the market value of 

Rs. 8.25 lakh. There is a wide scope of revenue maximization through lease and rentals 

from remunerative assets of Karaikudi Municipality. The ULB should follow the market 

value as minimum for lease and rentals of remunerative assets. Through this process 

municipality can fetch additional revenue to the tune of Rs. 10.12 lakh per annum. 

Revision of rentals and lease amounts has to be done every 3 year to a minimum of 15 

percent from FY 2006-07. The collection performance of leases and rentals are 

inconsistent over the assessment period and hence collection efficiency also to be 

improved. 

101


Table 10.10: Additional Revenue Estimation from Remunerative Assets 

Name of the Asset Ward Area Rental Value Accruing Market value Market Rental Additional 

No 

rentals 

Revenue 

Sekkalai Road Municipal 

Sq. ft Rs./Year/Sq.ft Rs./Year Rs./Year/Sq. ft Rs./Year Rs./Year 

Complex 15 600 260 156,060 300 180,000 23,940 

Kallukatti North New Shop 22 1,800 250 449,340 350 630,000 180,660 

Kallukatti East Old Shop 22 450 233 105,000 350 157,500 52,500 

Kallukatti East New Shop 22 300 210 63,000 350 105,000 42,000 

Amman sannadhi 22 50 240 11,976 350 17,500 5,524 

Kallukati West 22 1,300 261 339,004 350 455,000 115,996 

Subramaniapuram 

Kallukati North Silver Jubilee 

8 350 309 108,000 165 57,750 - 

Building 22 800 244 194,880 350 280,000 85,120 

Bharat Petroleum Bunk 

Rajaji Bus stand North East 

2 600 269 161,640 90 54,000 - 

Shops 22 350 232 81,360 350 122,500 41,140 

Rajaji Bus stand 

Rajaji Bus stand old Hotel 

22 1,200 263 316,044 350 420,000 103,956 

Anand shops 

Rajaji Bus stand West Part 

22 300 215 64,560 350 105,000 40,440 

Shops 22 300 278 83,280 350 105,000 21,720 

New Bus stand 8 3,000 259 778,428 265 795,000 16,572 

Daily Market 17 1,500 256 383,844 550 825,000 441,156 

Total Revenue 


3,296,416 4,309,250 1,012,834 

102

C. Additional Resource Mobilization 

1. Parking Fees 


293. Land-use and economic activity drives the parking demand in Karaikudi. Town attracts 

significant tourist and two-wheeler traffic, which puts up specific parking requirement. 

Private vehicles can be seen parked haphazardly along the roadside in the premises of Bus 

stand and market areas. Based on the field visit three locations were identified for on street 

parking of two wheelers. For estimating the parking fee, it was assumed that 40 percent of 

the total vehicle will be parked less than or equal to one hour and 60 percent of the total 

vehicle will be parked more than one hour. Vehicles that are parked more than an hour can 

be charged four rupees per vehicle and for other vehicles two rupees can be charged. An 

annual vehicle increment of two percent has been assumed to calculate the future revenue 

generation. The estimated parking fee is presented in Table 10.11. 

Table 10.11: Estimated Parking Fee 

Year Old Bus stand New Bus stand Madurai Road Total 

Approx. Nos of 

Vehicles./day 

100 200 300 600 

2007 1.53 

Rs. Lakh 

2.34 3.50 7.37 

2008 1.56 2.38 3.57 7.52 

2009 1.59 2.43 3.65 7.67 

2010 1.69 2.48 3.72 7.82 

2011 1.66 2.53 3.79 7.98 

2012 1.69 2.58 3.87 8.14 

2013 1.73 2.63 3.95 8.30 

2014 1.76 2.68 4.02 8.47 

2015 1.80 2.74 4.11 8.64 

2016 1.83 2.79 4.19 8.81 

2017 1.87 2.85 4.27 8.99 

2018 1.91 2.90 4.36 9.17 

2019 1.94 2.96 4.44 9.35 

2020 


1.98 3.02 4.53 9.54 

2. Advertisement Fee 

294. Lease amount fixed by the council for advertising on lamp posts and hoardings 4 erected 

within the Municipal limit are accounted in advertisement fee. In case of Karaikudi 

Municipality average revenue generated through the advertisement fee is very low (Rs. 70, 

000). Hence, there is a scope to increase the advertisement fee by extending the coverage 

net. The following table (Table 10.12) presents detailed estimation of advertisement fee 

for Karaikudi Municipality. The total estimated advertisement fee is Rs. 5.92 lakh per 

annum with an annual increment of 2 percent on total advertisement fee adopted to 

4 At present, the municipality is not the responsible agency to collect the advertisement fee for the 

hoardings. It is state level policy to change the advertisement has to collect by the municipality. 

103


forecast the future revenue. This minimum increase is assumed to accommodate increase 

in advertisement hoardings/ boards, which are likely to come in future. 

3. Conservancy Fee 

295. Conservancy 5 establishment cost work out to 54 percent of total establishment cost of 

Karaikudi Municipality, to meet at least a part of solid waste collection expenses 

conservancy fee is introduced. It is proposed to cover at least 70 percent of the residential 

properties and 100 percent of non-domestic properties like hotels, lodges, commercial 

establishments, etc in the town. For residential, properties Rs. 15 per month and nondomestic 

properties Rs. 20 per month can be charged with a upward revision of 15 percent 

every 3 years once from 2006-07 is proposed. Table 10.13 presents estimated additional 

revenue mobilization through conservancy fee for Karaikudi Municipality. 

4. Summary 

296. Summary of additional revenue mobilization through expenditure control measures and 

additional revenue generations are presented in Table 10.14. 

5 The conservancy fee has to collect after passing the council resolution. In the case of Karaikudi council 

is against this proposal during the stakeholders meeting 

104

Table 10.12: Estimation of Advertisement fee 

Description Unit Major Arterial Roads 


Other Roads Markets/ Bus stands Street Light poles 

Average Size of Hoarding Sq. m 10.00 5.00 10.00 

Average Rate/sq. m/half yearly Rupees 75.00 50.00 100.00 50.00 

Total Length of Road Km 144.11 

Length of Road % 20 50 - - 

Total Length of Road Km 29.00 72.00 - - 

Spacing of Hoarding/Boards per km Nos. 5 5 - - 

Total no of Hoarding/Boards Nos. 144 360 50.00 1,914 

Total Revenue per annum Rs. Lakh 2.16 1.80 1.00 0.96 


Table 10.13: Estimation of Conservancy Fee 

Description 

Domestic 

Coverage 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 

(No) 70% 16,700 

17,118 17,546 17,984 

18,434 

18,802 19,178 19,562 19,953 20,352 20,658 

Non 

Domestic 

(No) 100% 2,121 2,174 2,228 2,284 2,341 2,388 2,435 2,484 2,534 2,584 2,623 

Total 

Revenue 

(Rs. Lakh) 19.09 21.95 23.69 34.61 36.99 38.51 50.05 52.55 54.34 66.81 69.43 


105


Table 10.14: Estimated additional revenue from expenditure control and resource mobilization 

Item 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 

Rs. Lakh 

Expenditure Control Measures 

Energy savings – WS 4.91 5.17 5.45 5.74 6.04 6.36 6.70 7.05 7.42 7.80 8.21 8.64 

Energy Saving – Street lights - 0.99 2.03 2.09 2.16 2.22 2.29 2.36 2.43 2.50 2.58 2.65 

SWM - Privatization - - - 16.7 17.7 18.8 19.9 21.1 22.4 22.4 22.4 22.4 

Additional Resource Mobilization 

Leases/Rentals from Assets 10.13 10.13 11.65 11.65 11.65 13.39 13.39 13.39 15.40 15.40 15.40 17.71 

Parking Fee 7.37 7.52 7.67 7.82 7.98 8.14 8.30 8.47 8.64 8.81 8.99 9.17 

Total Revenue 22.41 23.81 26.8 44 45.53 48.91 50.58 52.37 56.29 56.91 57.58 60.57 


106


XI. CAPITAL INVESTMENT PLAN & FINANCIAL SUSTAINABILITY 

A. Capital Investment Plan 

297. Water Supply. Under this component, provision of source development, feeder mains up to 

OHTs, distribution network, rehabilitation to distribution network and treatment plant is 

proposed. The investment towards lake rejuvenation component is included in water 

supply sector. The sustainable costs estimated for the proposed interventions are to the 

tune of Rs. 888.20 lakh. This is worked out based on the base cost estimated in 2005. 

298. The Capital Investment Plan (CIP) for the water supply sector is based on the requirements 

and demand for the year 2026. The priority is given to the source development (new bore 

wells) in 2007-08 and the same in 2012-13. The feeder main and transmission main 

planned in 2007-09 and distribution network in 2009-10 and 2011-16. Rehabilitation of 

existing network shall be taken up in 2007-08. The strengthening and desilting of nallahs 

and lakes are planned to be taken up in 2009-10. The treatment plant will be executed in 

the year 2013-14. The phasing of the investment is presented in the Table 11.1 

Table 11.1: Sustainable Investment Phasing - Water Supply 

Component 2007 2008 2009 2010 2011 

Rs. Lakhs 

2012 2013 2014 2015 

Source development till 2026 

(4.89 MLD) 

3.67 3.67 

Feeder mains and 

Transmission Mains (4.31 km) 

34.48 

Distribution Network 

(81.25km) 

16.25 65.00 32.50 48.75 

Rehabilitation of existing 

Network (10.10 km) 

20.20 

Treatment capacity – 11.49 

540.07 

MLD (2026) 

Tanks/ Lakes conservation 60.00 60.00 

Replacement of Pumps 3.60 

Total 41.75 60.00 96.45 65.00 3.67 572.57 48.75 


299. Sewerage and Sanitation. An sustainable investment of Rs. 1,536.92 lakh (base cost) for 

provision of under ground drainage system. The CIP is presented in Table 11.2. 

Table 11.2: Sustainable Investment Phasing - Sewerage and Sanitation 

Component 2006 2007 2008 

Rs. Lakhs 

2009 2010 

Sewer network 

(72 km) 

235.12 352.67 491.27 

STP & Land and Electrical 

equipment (9.19 MLD) 

137.89 

Public Convenience in slums (27 

ISP units) 

95.99 111.99 111.99 

Total 331.11 464.66 741.15 


107


300. Roads & Traffic and Transportation. An sustainable investment of Rs. 370.88 lakh is 

proposed for up-gradation of existing roads, widening & strengthening of few roads and 

junction improvements. The details of investment phasing is summarised in Table 11.3. 

Table 11.3: Sustainable Investment Phasing - Roads 

Component 2007 2008 2009 2010 2011 2012 

Rs. Lakhs 

Up-gradation 

Earthen to Black Top 5.64 12.65 

New Formation 

Black Top 41.29 47.21 47.21 70.80 70.80 

Traffic & Transportation 

Widening/ Strengthening 13.95 21.33 

Junction Improvement 13.49 13.49 13.02 

Total 13.49 68.73 87.2 59.86 70.8 70.8 


301. Storm Water Drainage & Natural Drains. The components involved in this sector are upgradation 

of the existing drains and new formations. The estimated cost for extension and 

augmentation of storm water drainage including the improvement measures to Odai’s is 

about Rs. 563.91 lakh. The investment phasing for storm water drains is given in Table 

11.4 

Table 11.4: Sustainable Investment Phasing - Storm Water Drains and Natural Drains 

Component 2007 2008 2009 2010 2011 2012 2013 2014 

Rs. Lakhs 

Up-gradation of 

Kutcha to Pucca 


Open 

24.94 16.62 37.40 37.40 


Closed 

7.85 5.80 7.45 7.45 

New Pucca Open 

Drains 

44.39 44.39 44.93 91.77 

New Pucca 

18.75 18.75 33.75 39.38 

Closed Drains 

Natural Drains 

Desilting & 

Strengthening of 

Primary Drains 

Up-gradation of 



10.36 20.72 20.72 15.54 15.54 

32.79 32.78 65.57 65.57 78.68 78.68 78.68 131.15 

302. Solid Waste Management. The total investment identified for this sector is Rs. 389.07 

lakh. The components for primary and secondary collection are for the immediate 

requirements. The major investment is towards development of landfill site and compost 

yard. The Capital Improvement Program for solid waste management is presented in 

Table 11.5. 

108


Table 11.5: Sustainable Investment Phasing - Solid Waste Management 

Component 2006 2007 2008 

(Rs. Lakh) 

2009 2015 

Hand Carts (20 nos) 1.6 

Push Carts (258 nos) 18.58 

Dumper bins (19 nos) 5.23 5.23 

Dumper Placer (5 nos) 25.00 25.00 

Development of Compost (1 acre) 26.25 26.25 

Development for land fill (9 acres) 127.97 127.97 

Total 

Source : Analysis 

155.82 172.80 30.23 30.23 

303. Street Lighting. Rs. 738.22 lakh is identified for the provision of streetlights in Karaikudi. 

Table 11.6 gives the Capital Improvement Program for street lighting. 

Table 11.6: Sustainable Investment Phasing - Street Lighting 

Component 2006 2007 2008 2009 2010 2012 2013 2014 2015 

Replacement of 

Tube Lights 

with Retro Fit 

Retro Fit Tube 

Light (2324 nos) 

High Power 

(377 nos) 

Power Saver 

Switches (5 nos) 

High Mast 

Lamps (4 nos) 

29.96 

Rs. Lakhs 

6.95 62.75 62.75 67.97 87.15 58.10 58.10 58.10 119.10 

5.49 5.72 5.85 16.44 15.73 15.73 15.73 28.54 

0.23 

5.36 5.36 7.14 

Total 36.91 73.83 73.83 73.82 110.73 73.83 73.83 73.83 147.64 


304. Other Identified Projects. A total investment of Rs. 260.00 lakh is identified for funding 

various other projects as identified by the municipality. This is towards construction of 

two commercial complexes, development of parks and plays grounds, electrical 

crematorium and system modernization. (Table 11.7). 

Table 11.7: Sustainable Investment Phasing - Commercial Complexes, Parks etc,. 

Component 2006-07 2007-08 2008-09 

(Rs. Lakh) 

2009-10 2010-11 

Construction of Commercial 

- - - 60.00 60.00 

Complexes 

Parks and Play Grounds - 30.00 30.00 - 0 - 0 

System Modernization 2.00 2.00 2.00 2.00 2.00 

Electrical Crematorium - 0 - 0 - 0 70.00 - 0 

Total 2.00 32.00 32.00 132.00 62.00 


305. Summary. The total estimated base cost of projects for all the sector is Rs. 4,747.20 lakh. 

the summary of sustainable investments are in the following Table 11.8. 

109


Table 11.8: Component wise Sustainable Investments 

Component Capital Expenditure 

Municipal Infrastructure Rs. Lakh 

Water Supply & Rejuvenation of Lakes 888.20 

Sewerage & Sanitation 1,536.92 

Roads & Traffic and Transportation 370.88 

Storm Water Drains & Desilting of Natural Drains 563.91 

Solid Waste Management 389.07 

Street Lighting 738.22 

Others 260.00 

Total (Municipal Infrastructure) 4,747.20 


B. Financial Sustainability 

1. Financial Sustainability 

306. Sustainability Analysis. The sustainability analysis assumes that the municipality will 

carry out reforms indicated as assumptions for financial projections. A financial and 

operating plan (FOP) prepared for Karaikudi Municipality then evaluates the municipal 

fund status for the following scenarios: 

(i) Base Case Scenario. In the base case scenario, the finances of the ULB are forecast 

in a “do nothing” or “without project” scenario. Additional resources mobilized 

through various initiatives like expenditure control through energy savings, 

privatization etc. and further resources mobilized through introducing conservancy 

fee, parking fee, remunerative assets lease/ rental value appreciation and extending 

advertisement fee coverage are loaded on to the FOP. The revenue surplus thus 

generated indicates the ULB’s capacity to service capital expenditure. 

(ii) Full Project Scenario. The Full project investment scenario is based on 

investments identified for Karaikudi Municipality and the requirement for 

upgrading the town’s infrastructure. It is estimated and phased based on the 

construction activity and investment priority. Implications of this investment in 

terms of external borrowings required, resultant debt service commitment, and 

additional operation and maintenance expenditure are worked out to ascertain subproject 

cash flows. Revenue surpluses from the Base Case Scenario are applied to 

sub-project cash flows emerging from full project investments – the municipal 

fund net surpluses indicates the ULB’s ability to sustain full investments. FY 2020 

is assumed as the reference year to determine the net surpluses and whether the 

Municipality maintains a debt/revenue surplus ratio as an indication of the ULB’s 

ability to sustain investments. 

(iii) Sustainable Investment 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. 

Implications of this investment in terms of external borrowings required, resultant 

110


debt service commitment, and additional operation and maintenance expenditure 

are worked out to ascertain sub-project cash flows. Revenue surpluses from the 

Base Case Scenario are applied to sub-project cash flows emerging from 

sustainable investments – the municipal fund net surpluses indicates the ULB’s 

ability to sustain the investments. FY 2020 is assumed as the reference year to 

determine the net surpluses and whether the Municipality maintains a debt/revenue 

surplus ratio as an indication of the ULB’s ability to sustain investments. The 

outcome of this scenario will give an indication of the actual level of investment 

sustainable by the municipality without any additional external support. 

2 Basic Assumptions for Projections 

307. The FOP is based on a whole range of assumptions related to income and expenditure. 

These are critical to ascertain the investment sustenance and would also provide a tool to 

test certain specific policy decisions regarding revenue and expenditure drivers on the 

overall municipal fiscal situation. This section elucidates the key assumption adopted for 

the three FOP scenarios. 

308. In order to determine the financial viability of the project, two instruments were used – the 

Modified Internal Rate of Return (MIRR) and the Financial and Operating Plan (FOP). 

The MIRR determines the rate of return based on surplus cash flows from project account 

being invested at market rates. The FOP is a cash flow stream of the ULB based on the 

regular municipal revenues, expenditures, and applicability of surplus funds to support 

project sustainability. The FOP horizon is determined to assess the impact of full debt 

servicing liability resulting from the borrowings to meet the identified interventions. The 

proposed capital investments are phased over ten years investment from FY 2006-07 to 

2015-16 implying that the last loan draw down would occur in FY 2020-21. Considering a 

five-year moratorium period, the debt servicing commitment will commence in the FY 

2011-12 for the first phase (1st five year) and 2016-17 for the second phase (2 nd five year) 

of investment. 

309. Revenue Income. The assumptions for forecasting revenue income comprise: 

(i) Taxes and charges. In cases like property related taxes, water charges and 

sewerage charges, where the base and basis of revenue realization are known and 

predictable, the likely revenue is forecast based on certain assumptions regarding 

growth in number of assessments, revision in ARV (in case of property-related 

taxes), revision in charges/tariffs and improvement in collection efficiencies. The 

assumptions with regards basis for forecasting revenue income of taxes and 

charges are the same for base case and investments scenarios (full project as well 

as sustainable project scenarios). However, the tax base (number of connections) 

varies for the base, full project and sustainable investment scenarios, assuming that 

the new investments in water supply and sewerage schemes will result in increased 

coverage of the infrastructure systems. In the sustainable investment scenario, the 

increase in tax base is scaled down pro rata with the scaled down (sustainable) 

investment. Table 11.9, Table 11.10, Table 11.11 & Table 11.12 list the 

assumptions adopted with regards forecasting income from property tax, water 

charges, drainage charges and conservancy fee respectively under the three FOP 

scenarios. The investment scenarios include both full project and sustainable 

111

investment scenarios. 


Table 11.9: Key assumptions for forecasting income from Property Tax 

Description Current Level 

Base Case 

Scenario 

Investment 

Scenarios 

Annual growth in number of 

assessments (%) 

5.73 3.00 3.00 

Average ARV per Property (Rs. 

Per Annum) 

3,790 3,790 3,790 

Tax Rate (% of ARV) 

Periodic increase in ARV (%) 

31.00 31.00 31.00 

2006-07 - 30.00 30.00 

2011-12 - 30.00 30.00 

2016-17 

Collection Performance (% of 

Demand) 

- 30.00 30.00 

Arrears 56.00 50.00 50.00 

Current 


86.00 85.00 85.00 

Table 11.10: Key assumptions for forecasting income from Water Charges 


Base Case 

Scenario 

Investment 

Scenarios 

% water connections to property 

tax assessments 

Monthly water charge per 

connection (Rs.) 

36.23 36.23 80.00 

Domestic 41.00 41.00 60.00 

Non Domestic 81.00 81.00 100.00 

Industrial 

Periodic revision in water charges 

(%) 

121.00 121.00 150.00 

2006-07 - 15.00 15.00 

2009-10 - 15.00 15.00 

2011-12 - 15.00 15.00 

2015-16 - 15.00 15.00 

2018-19 


Demand) 

- 15.00 15.00 

Arrears 32.00 50.00 50.00 

Current 

One time connection fee (Rs.) 

71.00 80.00 80.00 

Domestic 2,000 2,000 2,000 

Non Domestic 3,000 3,000 3,000 

Industrial 5,000 5,000 5,000 

Periodic revision of one time 

connection fee 


- 

20 % - 3 yrs 

once 

20 % - 3 yrs 

once 

112

Table 11.11: Key assumptions for forecasting income from Sewerage Charges 


Base Case 

Scenario 


Investment 

Scenarios 

% Sewerage connections to PT 

assessments 

Monthly sewerage charge per 

connection (Rs.) 

- - 80.00 

Domestic - - 50.00 

Non Domestic - - 100.00 

Industrial 

Periodic revision in sewerage 

charges (%) 

- - 200.00 

2006-07 - - 15.00 

2009-10 - - 15.00 

2011-12 - - 15.00 

2015-16 - - 15.00 

2018-19 


Demand) 

- - 15.00 

Arrears - - 50.00 

Current 

One time connection fee (Rs.) 

- - 80.00 

Domestic - - 5,000 

Non Domestic - - 7,000 

Industrial - - 14,000 

Periodic revision of one time 

connection fee 


- - 

20 % - 3 yrs 

once 

Table 11.12: Key assumptions for forecasting income from Solid Waste conservancy fee 

Description 

% coverage to PT assessments 

Current Level 

Base Case 

Scenario 

Investment 

Scenarios 


Non Domestic 

Monthly conservancy fee per PT 

assessment (Rs.) 

- - 100.00 


Non Domestic 

Periodic revision in conservancy 

fee (%) 

- - 20.00 

2006-07 - - 15.00 

2009-10 - - 15.00 

2011-12 - - 15.00 

2015-16 - - 15.00 

2018-19 


Demand) 

- - 15.00 

Arrears - - 50.00 

Current 


- - 85.00 

113


(ii) Other revenue income from own sources. All revenue income from own sources 

other than property-related taxes, and water and sewerage charges, where the base 

and basis is not clearly defined, are forecast based on the observed trend during the 

assessment period (2000-01 to 2003-04), subject to minimum and maximum annual 

growth rates of 5 percent and 15 percent, respectively. Though the income from the 

municipal properties and markets past trend witnessed negative growth trend, by 

taking necessary action towards upward revision and through increasing collection 

efficiency municipality can achieve 10 percent growth per annum. Since most of 

the items past trend does not provide clear growth trend over the assessment period, 

it was assumed that a minimum of 5 per cent and a maximum of 15 percent annum. 

Table 11.13: Key growth rate assumptions for income from other own sources 

Description Current Level Assumption 

Profession tax (12.77 %) 5.00 % 

Other taxes & Charges (100.00 %) 5.00 % 

Income from Municipal Properties and Markets (30.74 %) 10.00 % 

License Income (Trade, etc.) 1.97 % 5.00 % 

Income from Special Services (29.05 %) 5.00 % 

Income from Sale Proceeds (12.45 %) 5.00 % 

Income from Fees and Fines 30.27 % 15.00 % 

Income from Interest on Deposits 145.97 % 6.00 % 

Income from Investments(Excl. Interest) -- 5.00 % 

Miscellaneous Income 18.38 % 10.00 % 


(iii) Assigned Revenue. Items of assigned revenue such as surcharge on stamp duty, 

entertainment tax share, etc. are forecast based on the observed trend during the 

assessment period (2001 to 2003-04), subject to minimum and maximum annual 

growth rates of 5 percent and 15 percent, respectively. Entertainment tax observed 

trend during the assessment period was negative growth rate, which attributes to 

inconsistent transfer of ULB share during the review period. Hence, a nominal 

growth rate of 5 percent assumed to forecast the revenue. In case of surcharge on 

stamp duty witnessed a high growth rate of 39.90 percent during the review period, 

which is very high. This high growth trend attributed to uneven transfer of stamp 

duty to municipality. Considering high property value appreciation in the town a 

maximum of 15 percent has been adopted to forecast the revenue. 

Table 11.14: Key growth rate assumptions for income from assigned sources 


Entertainment Tax (4.85 %) 5.00 % 

Surcharge on Stamp Duty 39.90 % 15.00 % 

Other Transfers (100.00 %) 5.00 % 

Total- Assigned Revenue 26.25 % 15.00 % 


(iv) Grants and Contributions. Revenue income in the form of grants and contributions 

are also forecast based on the observed trend during the review period (2000 - 01 to 

2003-04), subject to minimum and maximum annual growth rates of 5 percent and 

15 percent respectively. Although SFC devolution observed trend was negative, 

due to inconsistent transfer of grant to ULB. Considering the States tax revenue 

114


growth trend forecast, population growth trend and reforms measures initiated by 

the municipality will fetch more devolution fund. In this perspective, a maximum 

of 15 percent growth per annum adopted. 

Table 11.15: Key growth rate assumptions for income from grants & contributions 


State Finance Commission Grant (24.76 %) 15.00 % 

Other Grants (16.09 %) 5.00 % 

Total- Grants & Contribution (23.38 %) 


(v) Additional Revenue Income due to Sub-Projects. The sub-projects – in case of 

water and sewerage projects – are expected to fetch additional revenue by way of 

increase in number of assessments and levy of user charges (in cases where a new 

sewerage system is proposed). The sewerage charge is adopted as per Table 11.11 

starting from 2007-08 and a revision of 15 percent is proposed every three years, 

beginning from 2007-08. The additional revenue income due to water supply and 

sewerage sub-projects is computed based on the proposed number of new 

connections, proposed tariffs and assumed collection performance. In addition solid 

waste conservancy fee also planned to levy on property assessments. 

310. Revenue Expenditure. Key assumptions for forecasting revenue expenditure comprise: 

(i) Expenditure on Municipal Services. Expenditure on municipal services including 

general administration, revenue collection and service delivery are forecast based 

on the observed trend during the assessment period (2000-01 to 2003-04), subject 

to minimum and maximum annual growth rates of 5 percent and 20 percent, 

respectively. 

Table 11.16: Key growth rate assumptions for forecasting revenue expenditure 


General Administration & revenue Collection 

Staff Salary and Employee Related Expenses 7.58 % 8.00% 

Allowances to Elected Representatives 6.48 % 5.00% 

General Expenses 14.26 % 13.00% 

Pensions and Gratuities 14.40 % 5.00% 

Education - Staff Salary -- 5.00% 

Miscellaneous 6.70 % 15.00% 

Total-General Admin. & Revenue Collection 7.78 % 

Municipal Services excl. W&D 

General Expenses 16.01 % 5.00% 

Public Works and Roads 75.62 % 5.00% 

Public Health and Conservancy 100.58 % 15.00% 

Street Lighting (including Electricity Charges) 27.72 % 20.00% 

Education (87.09 %) 5.00% 

Vehicle and Equipment Maintenance 2.18 % 5.00% 

Miscellaneous (13.11 %) 5.00% 

Total- Municipal Services excl. W&D 43.45 % 


115


Table 11.17: Key growth rate assumptions for forecasting water supply revenue 

expenditure 


Staff Salary & Employee Related Expenses 2.28 % 5.00% 

Administration Expenses -- 5.00% 

Equipment Maintenance & Repairs (41.10 %) 5.00% 

Board Payment -- 5.00% 

Electricity Charges 18.11 % 15.00% 

Vehicle Maintenance & Repairs 24.03 % 15.00% 

Miscellaneous 28.96 % 10.00% 

Total- Water Supply & Drainage 12.79 % 


(ii) Outstanding Non-debt liabilities. The outstanding non-debt liabilities like payments 

due to employees, TNEB, TWAD, State Government cess, etc. are assumed to be 

cleared in equal installments over a 5-year period from 2006-07 to 2010-11. 

Wherever data was provided by the ULB, it was considered for preparing the FOP. 

(iv) Outstanding Debt Liabilities. The outstanding debt liabilities are proposed for 

clearance over a 10-year period beginning 2006-07 to 2016-17 with the furnished 

interest rate adopted otherwise at a constant interest of 9.50 percent per annum was 

assumed. 

(iv) Additional O&M Expenditure due to Sub-Projects. While each sector identifies the 

O&M costs applicable for asset maintenance (manpower, consumables, power 

charges, etc.), a proportion of the capital cost was derived for projections. Table 

11.18 presents the assumptions regarding O&M expenditure on new assets. 

Table 11.18: Assumptions for O&M Expenditure 

Sector As % of Capital Cost 

Water Supply 6.00 

Sewerage & Sanitation 4.00 

Roads and Traffic Management 3.00 

Storm Water Drainage 2.00 

Solid Waste Management 10.00 

Street Lighting 10.00 

Slum Upgradation 1.00 

Others 2.00 


(v) Additional Debt Servicing Expenditure due to Sustainable Investment. The loans 

for the sustainable investments are assumed to spread over 20 years, carrying an 

interest burden as indicated in Table 11.19, with a five year moratorium on interest 

and principal repayment – interest during the moratorium period being capitalized. 

Considering a five-year loan draw down schedule (2006-07 to 2010-11) and a 20year 

tenor, debt servicing will commence from 2011-12 for a period of 15 years. 

According to the project implementation schedule, the loan drawn and repayment 

schedule will differ. 

116


Table 11.19: Proposed Financing Pattern 

Infrastructure Type Loan Grant 

ULB + 

Consumer 

Interest 

Rate 

Water Supply 50 

Percentage 

30 20 8.50 

Sewerage & Sanitation 50 30 20 8.50 

Roads and Traffic Management 60 30 10 8.50 

Storm Water Drainage 60 30 10 8.50 

Solid Waste Management 60 30 10 8.50 

Street Lighting 60 30 10 8.50 

Slum Up gradation 60 30 10 8.50 

Others 


80 10 10 8.50 

311. Capital Account. In case of capital account, no capital transactions are considered in the 

base case scenario, as this scenario is aimed at ascertaining the ULB’s capacity to generate 

internal resources that would be leveraged to undertake identified sub-projects. In the 

identified investment and sustainable investment scenarios, sub-project cash flows are 

loaded onto the FOP and their impact on municipal finances in corresponding scenarios 

are tested. Key assumptions regarding capital account are investment phasing and project 

financing/funding structures. 

312. Capital Expenditure. The estimated expenditure for implementing sub-projects is phased 

over a five-year period beginning 2006-07. Based on the above phasing the actual 

investment requirement over the five-year period is ascertained adopting a physical 

contingency of seven percent and a price contingency of six percent per annum. Following 

tables presents the base full project cost and implementation schedule. 

117


Table 11.20: Summary of estimated capital investment and phasing schedule 

Sector 

Total 

Investment 

Investment Phasing (%) 

Rs. Lakh 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 

Municipal Infrastructure 

Water Supply 888.20 0% 5% 7% 11% 0% 8% 0% 65% 0% 4% 

Sewerage & Sanitation 4,056.49 0% 20% 30% 30% 20% 0% 0% 0% 0% 0% 

Roads 1,348.65 5% 5% 10% 10% 20% 10% 10% 15% 15% 0% 

Storm Water Drains 2,622.85 0% 5% 5% 10% 10% 15% 15% 15% 25% 0% 

Solid Waste Mgmt 389.07 40% 44% 8% 0% 0% 0% 0% 0% 0% 8% 

Street Lighting 738.22 5% 10% 10% 10% 15% 0% 10% 10% 10% 20% 

Slum Upgradation 319.97 0% 30% 35% 35% 0% 0% 0% 0% 0% 0% 

Others 260.00 0% 15% 20% 30% 35% 0% 0% 0% 0% 0% 

Sub Total – ULB Investment 

Other Agency Infrastructures 

10,623.45 

Ring Road/Bypass 

Sub Total –Other Agency 

4,000.00 - - - - - 10% 30% 30% 30% - 

Investment 4,000.00 

Grand Total Investment 


14,623.45 

118


Table 11.21: Summary of phased investment in full project investment scenario 

Sector 

Total 

Investment 

Investment Phasing – Rs. Lakh at Current Price 

Rs. Lakh 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 


Water Supply 888.20 4 40 60 97 - 71 4 577 - 37 

Sewerage & Sanitation 4056.49 - 811 811 1,217 1,217 811 - - - - 

Roads 1348.65 67 67 135 135 270 135 135 202 202 - 

Storm Water Drains 2622.85 - 131 131 262 262 393 393 393 656 - 

Solid Waste Mgmt 389.07 156 173 30 - 0 - - - - 30 

Street Lighting 738.22 37 74 74 74 111 - 74 74 74 148 

Slum Upgradation 319.97 - 96 112 112 - - - - - - 

Others 260.00 - 39 52 78 91 - - - - - 

Sub Total – ULB Investment 

Other Agency Infrastructures 

10,623.45 264 1431 1405 1975 1951 1410 606 1246 932 215 

Ring Road/Bypass 

Sub Total –Other Agency 

4,000.00 - - - - - 400 1200 1200 1200 - 

Investment 4,000.00 - - - - - 400 1200 1200 1200 - 

Grand Total Investment 


14623.45 264 1431 1405 1975 1951 1810 1806 2446 2132 215 

119


313. Capital Income. Capital income is forecast based on actual requirement to meet proposed 

capital expenditure. 

Table 11.22: Financing pattern for proposed projects 

Sl 

No. 

Sector 

Government 

Grant 

Financial 

Institution 

Loan 

ULB 

Share 

% Share 

Consumer 

Contributi 

on 

Other 

Depart 

ment 

Municipal Infrastructures 

1 Water Supply 30.00 50.00 10.00 10.00 - 

2 Sewerage & Sanitation 30.00 50.00 10.00 10.00 - 

3 

Roads and Traffic 

Management 30.00 60.00 10.00 - - 

4 Storm Water Drainage 30.00 60.00 10.00 - - 

5 

Solid Waste 

Management 30.00 60.00 10.00 - - 

6 Street Lighting 30.00 60.00 10.00 - - 

7 Slum Up gradation 30.00 60.00 10.00 - - 

8 Others 10.00 80.00 10.00 - - 

Other Agencies owned Infrastructures 

9 

Traffic & 

Transportation - - - - 100 


Table 11.23: One-time charges for water & sewerage connections 

Sl. No Description Water Supply Sewerage 

1 Domestic 2,000 5,000 

2 Non Domestic 3,000 7,000 

3 Industrial 5,000 14,000 


314. In summary, the following key assumptions were made while preparing the cash flows: 

(i) Revenue Income . 

a. Property Tax: projected based on ARV per property; number of assessments 

to grow at a nominal 3 percent per annum; ARV for all properties revised 

once in 5 years beginning 2006-07 at 30 percent; and collection performance 

assumed at 50 percent against arrears demand and 85 percent against current 

demand. 

b. Water Charges: At a nominal 3 percent per annum (proportionate to 

property tax assessment growth rate) regular connections are envisaged in 

the base case scenario and increase in water connections is a result of the 

availability of additional water for distribution – it is assumed that 80 

percent of the property tax connections would have water connections by FY 

2013; the current rate of water charge is maintained till 2005-06, and from 

2006-07 a 15 percent increase is assumed every 3 years; collection 

performance is assumed at 50 percent against arrears demand and 80 percent 

120


against current demand; and new (one-time) connection charges are 

collected as per the current rate till 2005-06, and from 2006-07 a 20 percent 

increase in every 3 years. 

c. Sewerage Charges: No new connections envisaged in base case scenario and 

sewer connections are provided under the Project – it is assumed that 80 

percent of the property tax connections would have water connections by FY 

2020; monthly flat rate of Rs. 50, Rs, 100 & Rs. 200 per connection for 

domestic, non domestic and industrial connections respectively, it is 

assumed for sewerage charge starts from 2013-14, and from then on a 15 

percent increase is assumed every 3 years; collection performance is 

assumed at 50 percent against arrears demand and 80 percent against current 

demand; and new (one-time) connection charges are adopted as per Table 

11.11. 

d. Conservancy Fee: In base case scenario and investment scenarios, it is 

assumed that 70 percent of the residential property tax assessments and 100 

percent of non-domestic property assessments would have to be brought 

under the conservancy fee coverage net. Monthly conservancy fee of Rs. 15 

& Rs, 20 per property assessment s has been proposed for residential and 

non domestic properties respectively. It is assumed for conservancy fee 

starts from 2006-07, and from then on a 15 percent increase is assumed 

every 3 years; collection performance is assumed at 50 percent against 

arrears demand and 85 percent against current demand. 

e. All other Revenue income items. (including municipal own sources, grants 

and assigned revenues): past trend is adopted, subject to minimum and 

maximum ceilings of 5 and 15 percent per annum, respectively. 

(ii) Revenue Expenditure. 

a. Past trend is adopted, subject to minimum and maximum ceilings of 5 and 

20 percent per annum, respectively. 

b. Additional O&M expenditure is estimated based on ascertained percentages 

of capital costs. 

c. All outstanding non-debt liabilities are to be cleared off in the next 5 years. 

d. All outstanding debt liabilities are to be cleared off in the next 10 years at an 

interest rate provided by the ULB, otherwise at an average interest rate of 

9.50 percent. 

e. New loans are to be serviced over a 20-year tenor (including a five-year 

principal plus interest moratorium) at interest rates indicated in Table 11.19. 

(iii) Capital Expenditure. 

a. Capital expenditure is forecast based on the identified investments. 

b. The base costs estimated are at 2005-06 prices, which are then indexed by 7 

percent for physical contingencies, and 6 percent for price contingencies. 

(iv) Capital Income. 

121


a. Capital Income is ascertained based on assumed project financing patterns 

as detailed in Table 11.19. 

3. Project Cash Flows and FOP Results 

315. The base case scenario is worked out considering only the revenue account transactions to 

assess the municipal capacity to generate revenue surpluses that could be leveraged to 

undertake capital investments. Detailed cash flows are worked out for each of the subprojects 

based on the assumptions with regards investment phasing, financing pattern, 

additional O&M expenditure and additional income due to proposed capital investments, 

for the Full Project scenarios and Sustainable investment scenarios. The net project cash 

flows are then loaded onto the base case scenario to test their impact on the overall 

municipal fiscal situation. 

316. Base Case Scenario. The base case scenario results indicate that under the past-trend based 

assumptions adopted, Karaikudi Municipality would end up with a positive cumulative 

surplus of Rs.6,747 lakh by the end of FY 2019-20 (refer Table 11.24). With reforms and 

additional resource mobilization initiatives like energy saving in water supply pumps at 

head works, energy savings in street lighting and privatization of solid waste management 

activity and parking fee, levying of new charges like conservancy fee municipality can 

reach above said cumulative surplus. Base case with out reforms and with out additional 

resource mobilization initiatives municipality would end up with a positive closing 

balance of Rs. 5,962 lakh. 

Investment 

(i) Full Project Sustenance 

Scenario. Table 11.25 

presents a summary of 

total project cash flows 

due to the full project 

scenario. Detailed subproject 

cash flows are 

presented in Appendix 

III. Karaikudi 

Municipality would 

accumulate a negative 

closing balance of Rs. 

12,490 lakh by the end of 

2019-20 due exclusively 

to the full project 

investment. The total net 

project cash flows due to 

full project when loaded 

onto the base case 

Solid Waste 

Management 

4% 

Storm Water 

Drinage 

25% 


7% 

Figure 11.1: Full Project - Sector wise 

Base Cost Full Project Investment Distribution 

Others 

2% 

Road and Traffic 

Management 

13% 

Water Supply 

8% 

Sewerage 

38% 

Scenario FOP indicate that Karaikudi Municipality would end up with a negative closing 

balance of Rs. 5,743 lakh by the FOP horizon year 2019-20, which represents the extent of 

subsidy/grant required by the Municipality to sustain the full project investments. The 

122


NPV of subsidy/grant required amounts to about Rs. 20,257 lakh at 2005-06 prices, 

assuming a discount factor of 8.50 per cent. Table 11.24 presents a summary of the 

municipal fiscal status in the Full Project scenario. The full project (municipal share) 

investment proposed for Karaikudi is to the tune of Rs.10,623 lakh, out of which 38 

percent of the total investment is proposed for sewerage and 25 percent for storm water 

drain construction and improvement. Only 8 percent of the total investment proposed in 

Karaikudi for water supply improvement works and source augmentation works. This 

clearly indicates that the ULB need a sewerage system and better storm water drainage 

facility in future. 

123


Table 11.24: Financial Operating Plan Results - Karaikudi Municipality. 

Item Heads 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 

Base Case - Municipal Fund 

Opening Balance 140 304 478 657 844 1,065 1292 1670 2087 2522 2,975 3,462 4,224 5,023 5,872 

Revenue Income 732 877 940 1,009 1,097 1,184 1,397 1,535 1,666 1,809 1,986 2,337 2,557 2,817 3,082 

Additional Revenue 

Mobilization 

0 28 30 33 50 52 55 57 59 63 65 68 72 75 77 

Total Revenue Income 732 905 970 1,042 1,147 1,236 1,452 1,592 1,725 1,872 2,052 2,405 2,629 2,891 3,159 

Revenue Expenditure 568 732 790 855 927 1,008 1,074 1,176 1,290 1,419 1,565 1,643 1830 2,042 2,284 

Status 164 174 180 187 220 227 378 417 435 453 487 762 799 849 875 

Closing Balance 304 478 657 844 1,065 1,292 1,670 2,087 2,522 2,975 3,462 4,224 5,023 5,872 6,747 

Project Account - Full HPI Scenario 

Total Net Project Cash Flow 

(after deducting ULB equity 

from cash flow) 

Rs. Lakh 

0 (24) (149) (167) (334) (555) (1,140) (2,127) (3,151) (4,410) (5,569) (7,144) (9,055) (10,85 

6) 

Overall Closing Balance 304 453 509 677 730 737 530 (40) (629) (1,435) (2,107) (2,920) (4,032) (4,984) (5,743) 

Project Account - Sustainable HPI Scenario 

Total Net Project Cash 

Flows (after deducting ULB 

equity from project cash 

flow) 

0 (8) 21 209 365 616 827 1,018 1,007 1,131 1,330 1,610 1,934 2,369 2,945 

Overall Closing Balance 304 470 678 1,054 1,430 1,908 2,497 3,105 3,529 4,106 4,792 5,833 6,957 8,241 9,692 

124 

(12,49 

0)

1 

2 

3 

4 

5 

6 

7 

Table 11.25: Summary of Full Project Cash Flow. 


Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 

Full Sub Project Cash Flow 

Water Supply 

Rs. Lakh 

(2.1) (29.3) 66.2 77.1 110.8 64.2 (9.3) (578.2) 

Sewerage 

0.0 (502.1) (1,842.7) (4,095.9) (7,021.2) 


(1,253.6 

Management (47.2) (146.9) (355.4) (682.1) ) 

Storm Water Drainage 

0.0 (97.4) (301.3) (727.7) 

(1,393.8 

) 

Solid Waste 

(1,090.9 

Management (79.3) (301.7) (568.3) (829.4) ) 


Slum Upgradations 

(25.9) (110.9) (263.4) (488.0) (822.3) 

0.0 (71.3) (231.9) (487.6) (744.9) 

(10,005.1 

) 

(1,964.5 

) 

(2,437.4 

) 

(1,353.5 

) 

(1,175.0 

) 

(1,002.5 

) 

8 Others 0.0 (38.6) (132.8) (315.2) (607.2) (899.5) 

Total Sub Project 

Cash Flow (154.5) 

Total Full Project Cash Flow 

(1,298.3 

) 

(3,629.7 

) 

(7,548.7 

) 

(12,823. 

0) 

(18,773. 

4) 

(12,906.2 

) 

(2,797.9 

) 

(3,885.7 

) 

(1,597.3 

) 

(1,593.9 

) 

(1,260.5 

) 

(1,192.1 

) 

(25,242. 

8) 

(15,134.5 

) 

(3,832.1 

) 

(5,740.6 

) 

(1,831.7 

) 

(2,094.7 

) 

(1,509.7 

) 

(1,474.8 

) 

(32,196. 

3) 

(1,198.3 

) 

(17,326.2 

) 

(5,082.5 

) 

(8,319.7 

) 

(2,056.5 

) 

(2,682.9 

) 

(1,749.5 

) 

(1,746.8 

) 

(40,162. 

5) 

(1,825.2 

) 

(19,200. 

0) 

(6,322.8 

) 

(10,900. 

2) 

(2,295.1 

) 

(3,451.5 

) 

(1,979.2 

) 

(2,007.2 

) 

(47,981. 

1) 

(2,448.0 

) 

(21,078. 

6) 

(7,540.4 

) 

(13,457. 

0) 

(2,527.5 

) 

(4,241.2 

) 

(2,197.7 

) 

(2,255.2 

) 

(55,745. 

6) 

(3,042.9 

) 

(22,881. 

9) 

(8,708.4 

) 

(15,920. 

6) 

(2,746.5 

) 

(5,009.3 

) 

(2,404.3 

) 

(2,489.4 

) 

(63,203. 

3) 

(3,607.1 

) 

(24,402. 

2) 

(9,822.6 

) 

(18,282. 

7) 

(2,937.1 

) 

(5,753.8 

) 

(2,597.7 

) 

(2,708.8 

) 

(70,112. 

0) 

Opening Balance 17 108 356 588 887 1,139 1,364 1,595 1,771 2,019 2,299 2,623 3,059 3,634 

A Sources of Fund 

1 Debt Drawdown 63 59 76 47 42 34 242 51 50 - - - - - 

2 Equity Drawdown 352 311 386 311 174 202 741 308 247 - - - - - 

3 Govt. Grant 164 139 167 115 92 101 421 154 127 - - - - - 

4 User Charges 54 115 189 270 332 414 506 568 661 794 871 978 1,143 1,173 

5 New Connection Fees 103 263 233 275 234 192 196 196 237 237 242 272 272 - 

Total- Inflow 736 887 1,053 1,019 874 942 2,106 1,277 1,321 1,031 1,114 1,250 1,415 1,173 

B Disposition of Funds 

1 Project Capex 579 509 630 474 308 337 1,405 513 423 - - - - - 

125 

(4,142.0 

) 

(25,548. 

8) 

(10,878. 

2) 

(20,534. 

7) 

(3,110.9 

) 

(6,472.3 

) 

(2,777.0 

) 

(2,912.0 

) 

(76,375. 

9)

2 

3 

4 


Operation & 

Maintenance 

Debt Servicing- 

23 62 88 119 147 167 194 286 326 385 408 432 458 486 

Principal Repayment 

Interest During 

- - - - 152 181 181 181 181 367 381 381 381 383 

Construction - - - - - - - - - - - - - - 

Total- Outflow 42 69 102 128 15 32 95 121 142 - - - - - 

Net Cash Flow - - - - - - - - - - - - - - 

Closing Balance 645 639 820 720 621 717 1,875 1,102 1,072 752 789 814 840 869 

126


Table 11.26: Summary of base cost sustainable investment and phasing schedule 

Sector 

Total 

Investment 

Investment Phasing (%) 

Rs. Lakh 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 


Water Supply 888 0% 5% 7% 11% 0% 8% 0% 65% 0% 4% 

Sewerage & Sanitation 1,217 0% 20% 30% 30% 20% 0% 0% 0% 0% 0% 

Roads 371 5% 5% 10% 10% 20% 10% 10% 15% 15% 0% 

Storm Water Drains 564 0% 5% 5% 10% 10% 15% 15% 15% 25% 0% 

Solid Waste Mgmt 389 40% 44% 8% 0% 0% 0% 0% 0% 0% 8% 

Street Lighting 738 5% 10% 10% 10% 15% 0% 10% 10% 10% 20% 

Slum Upgradation 320 0% 30% 35% 35% 0% 0% 0% 0% 0% 0% 

Others 260 0% 15% 20% 30% 35% 0% 0% 0% 0% 0% 

Total – ULB Investment 

Source : Analysis 

4,747.00 

Table 11.27: Summary of sustainable project investment -base cost 

Sector 

Total 

Investment 

Investment Phasing – Rs. Lakh at Current Price 

Rs. Lakh 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 


Water Supply 888 4 40 60 97 - 71 4 577 - 37 

Sewerage & Sanitation 1,217 - 243 366 366 243 - - - - - 

Roads 371 13 13 27 27 54 47 47 71 71 - 

Storm Water Drains 564 - 33 33 66 66 79 79 79 131 - 

Solid Waste Mgmt 389 156 173 30 - 0 - - - - 30 

Street Lighting 738 37 74 74 74 111 - 74 74 74 148 

Slum Upgradation 320 - 96 112 112 - - - - - - 

Others 260 - 39 52 78 91 - - - - - 

Total – ULB Investment 


4,747.00 210 468 388 453 321 319 447 1,104 580 458 

127

Table 11.28: Summary of sustainable investment project cash flow 


Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 

Sustainable Sub Project Cash Flow 

1 Water Supply (0.2) (2.7) 153.5 286.6 442.4 568.7 666.2 726.7 730.9 755.8 757.3 758.9 761.1 759.8 

2 Sewerage 


0.0 123.4 300.7 523.5 834.9 1,189.1 1,586.0 2,068.3 2,605.0 3,232.5 3,982.1 4,804.8 5,739.4 6,831.7 

3 Management (0.8) (2.9) (7.4) (14.9) (27.7) (50.8) (80.4) (119.3) (169.2) (224.1) (288.9) (355.0) (422.5) (491.5) 

4 Storm Water Drainage 

Solid Waste 

0.0 (2.1) (7.1) (17.8) (35.3) (61.2) (102.3) (153.6) (220.9) (293.9) (381.7) (470.8) (561.3) (653.3) 

5 Management 20.6 15.5 (12.0) (34.0) (56.4) (89.2) (112.4) (136.3) (161.4) (179.4) (204.1) (230.6) (245.1) (260.7) 

6 


(2.2) (13.4) (38.9) (80.1) (141.4) (231.8) (331.6) (453.7) (600.3) (780.8) (997.1) 

(1,236. 

6) 

(1,485. 

3) 

(1,743. 

9) 

7 Slum Upgradations 0.0 (6.1) (20.8) (45.0) (71.0) (97.2) (132.6) (168.4) (204.5) (240.9) (277.6) (314.8) (352.3) (390.3) 

8 Others 0.0 (3.3) (12.2) (29.9) (59.0) (88.4) (128.3) (168.5) (209.0) (249.9) (291.3) (333.1) (375.4) (418.1) 

Total Sustainable Sub 

Project Cash Flow 

17.4 108.4 355.8 588.3 886.6 1,139.3 1,364.5 1,595.3 1,770.6 2,019.2 2,298.6 2,622.9 3,058.5 3,633.6 

Total Full Project Cash Flow 

Rs. Lakh 

Opening Balance 17 108 356 588 887 1139 1364 1595 1771 2019 2299 2623 3059 

A Sources of Fund 

1 Debt Drawdown 147 352 311 386 311 174 202 741 308 247 - - - - 

2 Equity Drawdown 25 63 59 76 47 42 34 242 51 50 - - - - 

3 Govt. Grant 74 164 139 167 115 92 101 421 154 127 - - - - 

4 User Charges 30 54 115 189 270 332 414 506 568 661 794 871 978 1,143 

5 New Connection Fees - 103 263 233 275 234 192 196 196 237 237 242 272 272 

Total- Inflow 275 736 887 1,053 1,019 874 942 2,106 1,277 1,321 1,031 1,114 1,250 1,415 

B Disposition of Funds 

1 Project Capex 

Operation & 

245 579 509 630 474 308 337 1,405 513 423 - - - - 

2 Maintenance - 23 62 88 119 147 167 194 286 326 385 408 432 458 

128

3 

4 


Debt Servicing- 

Principal Repayment 

Interest During 

- - - - - 152 181 181 181 181 367 381 381 381 

Construction 12 42 69 102 128 15 32 95 121 142 - - - - 

Total- Outflow 257 645 639 820 720 621 717 1,875 1,102 1,072 752 789 814 840 

Net Cash Flow 17 91 247 233 298 253 225 231 175 249 279 324 436 575 

Closing Balance 17 108 356 588 887 1139 1364 1595 1771 2019 2299 2623 3059 3634 

129

A. Urban Governance 

XII. URBAN GOVERNANCE 


317. This chapter outlines the various best practices world over regarding good urban 

governance. The strategies presented in this chapter, are an integrated whole and none of 

them can be seen are understood in an isolated section. Commitment of the municipality to 

civic, secure and transparent administration will realize the dream of any city/town where 

the citizens will be those who govern and the municipality as an institution is one who 

facilitates and provides the service. 

1. Current Initiatives 

318. The other initiatives that are being adopted by the municipality to enhance its performance 

and capacity building are computerization of its activities and involving private sector in 

the delivery of civic services. 

319. Computerization. GoTN has initiated steps to computerize municipal administration in the 

state. The entire process consists of four modules: Revenue and Taxation, Record 

Maintenance, Personnel Management System, Financial Management System. 

320. As a start up, data relating to property tax has been computerized and the assessments are 

now handled by using computers. The billing and collection system of the property taxes 

is also computerized in the town. However, the computerization efforts are slow owing to 

the absence of technical capabilities with the municipality. 

321. Private Sector Participation. The municipality has initiated the involvement of private 

sector in service delivery through part privatization of the solid waste collection system. 

The initiative has received good response from the citizens of the town and further 

privatization of certain other components of services is in active consideration of the 

municipality. 

2. Strategies 

322. Decentralization. In conformity to the 74th CAA, the Government of Tamil Nadu has 

made necessary legislative changes to devolve functional domains of the 18 listed items in 

the 12th schedule of the constitution. However only seven functions are made obligatory 

functions of urban local bodies and important functions like urban planning including 

town planning, regulation of land use and construction of buildings, slum improvement, 

urban poverty alleviation remain discretionary functions with rather little say for ULB. 

Consequently, the funds and concerned staff continue to remain under the control of the 

State Government. Financial powers as envisaged in the 12th Schedule of the Constitution 

also need to be immediately devolved to urban local bodies. 

323. The local bodies should have control over the land in their jurisdiction and other 

130


infrastructure including roads in their area. They should have power to remove 

encroachment from public land, construct and maintain roads within their respective 

municipal areas. 

324. The municipality shall divide the area into zones/ divisions for better service delivery and 

management control. Such a mechanism is already being implemented in water supply and 

public health sectors. 

325. Urban Environmental Management. The costs of maintaining a healthy urban environment 

needs to be recovered through various municipal taxes and user charges following the 

“Polluter Pays” principle. For this, the functional role of the ULB as envisaged in Item 8, 

12th Schedule of the Constitution have to be resolved keeping in view the role of Tamil 

Nadu Pollution Control Board and the organizational and fiscal strength of the ULB. 

326. Access of Urban Services to Poor. Since “Ability-to-Pay” for the full cost of 

environmental infrastructure services’ provision is the important criterion, crosssubsidization 

of tariffs, innovative project structuring and user/ community participation 

are the means towards ensuring access of these services to the poor. Again, the functional 

and financial role of ULB with respect to the items 10 and 11 of 12th Schedule against 

those of central and state government agencies need to be resolved. 

327. Streamlining and Strengthening of Revenue Base of Local Bodies. 

(i) The recommendations of the State Finance Commissions must be made mandatory 

and should be implemented as a matter of course. Law enforcement powers should 

be given to local bodies to compel payments of taxes and other charges levied by 

them. 

(ii) Property Tax base should be de-linked from rental value method and should be 

linked to Unit Area or Capital value method. 

(iii) Fiscal powers of municipal bodies to fix tax rates, fee structure and user charges 

should be strengthened through specific guidelines and notifications. Prepare model 

guidelines for the town to allow greater flexibility in levying taxes, fees and user 

charges, borrowing funds and incurring expenditures. 

(iv) The annual report of the municipality shall devote a section highlighting the 

amounts of subsidy given to a particular service, how was the subsidy funded and 

who were its beneficiaries. 

(v) Adopting Zero-based budgeting shall be carried out supported by the already 

computerised accounting system for continual monitoring of budgets and cash flow 

management. 

(vi) Implementation of MIS to provide relevant information on accounts, commercial 

and operating systems for better decision making and information dissemination to 

citizens. 

(vii) Auditing of Accounts should be carried out effectively and regularly to promote 

transparency and accountability. 

(viii) Application of e-governance is equally important for municipal finance. Adequate 

software in the financial management is required at different levels. 

131

328. Transparency and Civic Engagement in Municipal Management. 


(i) Laws/ rules/ regulations specific to town/ local issues should be tried to facilitate 

effective implementation. These should be lucid and easily understood. 

(ii) Participatory mechanisms should be so structured that they have legal entity and 

administrative power. Local bodies should be responsive and innovative and involve 

community participation in civic engagement. 

(iii) Specific code of conduct for municipal executives and elected representatives. 

(iv) Public education, resource mobilisation, good leadership and transparent processes 

apply in municipal finance and development work. 

(v) Closer networking with media and their engagement in creating public awareness 

and creating demand for good governance. Cautious engagement of private sector 

with continuous monitoring is necessary. 

(vi) Setting in place an active and online public Grievances’ Redressal System, with 

automated department wise complaint loading and monitoring system. 

(vii) Instruments to improve the efficiency of local bodies through enhanced technical, 

administrative, and financial capacities. 

(viii) Credit Enhancement options other than state guarantees need to be adopted. 

(ix) Preparation of annual Environmental Status Reports through a multi-stakeholder 

consultation process. 

329. Capacity Building of Local Bodies. 

(i) The municipality shall maintain data to generate indicators as suggested in this 

document for evaluating their performance. 

(ii) Prepare and conduct capacity building programs for elected representatives, 

especially women representatives with a view to enable them to focus on gender 

based issues. 

(iii) Promote the creation of interactive platforms for sharing municipal innovations, 

experiences among municipal managers. 

(iv) Better Human Resource Management through assessment of the training needs of 

personnel involved in urban administration to enhance the management and 

organizational capabilities. 

(v) Assessment of fund requirement and resource persons to tackle the training needs of 

all the personnel. 

(vi) Development of Training Material in the local language and Impact and Evaluation 

Studies of the Training Programs. 

(vii) Capacity building to position the ULB in a better place to employ highly qualified 

staff and seek superior quality of out-sourced services. 

132

Appendix I: Ward Level Densities 


Ward Area Population Male Female Households Literates Density 

No. 

Sq. Km 

Population Population 

1 1.23 3291 1673 1618 658 2403 2682 

2 0.28 2397 1153 1244 479 1768 8591 

3 0.13 2535 1296 1239 507 1916 19351 

4 0.08 1241 624 617 248 842 15134 

5 0.18 4403 2225 2178 881 3434 24598 

6 0.47 3432 1756 1676 686 2974 7287 

7 0.13 1321 665 656 264 1180 10084 

8 0.88 5511 2797 2714 1102 4808 6284 

9 0.52 2113 1055 1058 423 1693 4087 

10 0.32 2360 1200 1160 472 2009 7375 

11 0.18 1532 767 765 306 1271 8418 

12 0.67 1261 642 619 252 984 1896 

13 0.10 1475 731 744 295 1211 14461 

14 0.14 2055 1046 1009 411 1770 14784 

15 0.12 1910 954 956 382 1559 15528 

16 0.12 1506 753 753 301 1278 12872 

17 0.41 1996 967 1029 399 1754 4880 

18 0.09 3767 1803 1964 753 3221 42326 

19 2.38 5914 2927 2987 1183 4589 2482 

20 0.16 1713 855 858 343 1461 10706 

21 0.20 1498 740 758 300 1272 7528 

22 0.35 2132 1073 1059 426 1554 6057 

23 0.19 1052 509 543 210 853 5566 

24 0.27 2089 1062 1027 418 1699 7853 

25 0.12 1688 828 860 338 1193 14427 

26 0.26 2515 1265 1250 503 2103 9563 

27 0.07 1553 716 837 311 1155 23179 

28 0.15 2190 1089 1101 438 1801 14503 

29 0.28 3432 1757 1675 686 2539 12127 

30 0.28 2922 1445 1477 584 1894 10289 

31 0.32 2259 1143 1116 452 1696 6994 

32 0.18 1798 883 915 360 1413 10274 

33 0.17 2900 1461 1439 580 2122 16959 

34 1.05 3440 1718 1722 688 2611 3286 

35 0.87 1470 685 785 294 1146 1688 

36 0.41 1751 852 899 350 1135 4313 

Total 13.75 86422 43115 43307 17283 68311 6287 

133

Appendix II: Population Projection………………………………………. 

Sample calculation for Population Projection 

By considering Population from 1951 to 12001 and Projected for 2006 

Year Population Polynomial Arithmetic Increase Incremental Increase Method Geometrical Progression 

2nd Order method 

method 

Decadal Projected Increment Increment Projected Rate of Projected 

Increment Population X Y Population Growth Population 

Exponential 

Method 


Other Methods 

Power 

Method 

Log 

Method 

1951 38453 

1961 43698 5,245 5,245 0.1364 

1971 55449 11,751 11,751 6,506 0.2689 

1981 66993 11,544 11,544 -207 0.2082 

1991 71965 4,972 4,972 -6,572 0.0742 

2001 86596 14,631 14,631 9,659 0.2033 

2006 91,569 91,410 92,290 93,389 95,220 82,740 80,600 

9,629 2,347 

9,629 

0.1630 

Selection of Population Projection Method: 

Census Population is considered from 1951 to 2001. 

Projection by Arithmetic Increase Method: 

Average decadal increase of population (X)=9629. 

Projected population for n decades = Census Population for the latest year +n x Average decadal growth rate. 

(where n = number of decades) 

Projected population for 2006 = Population for the year 2001 + 0.5 x Average decadal growth rate. 

= 86,596 + 0.5 x 9,629 

= 91,410 

134


Projection by Incremental Increase Method: 

Incremental Increase (Y) = 2,347 

Projected population for n decades = Census Population for the latest year + n x Average decadal growth rate +n(n+1)/2 x Y 

Projected population for 2006 = 86,596+(0.5x9,629) + 0.5 x(0.5+1)/2 x (2,347) 

= 92,290 

Projection by Geometrical Increase Method: 

Average Rate of growth (r) = 0.1630 

Projected population for n decades = Census Population for the latest year x (1+ Rate of growth) n 

Projected population for 2001 = Population for 2001 x (1+ Rate of growth) 0.5 

Projected population for 2006 = 86,596 x (0.5+0.1630) 0.5 

= 93,383 

For other Graphical Methods Population is Projected based on the Graphs Given Below. 

(i) Projection By Polynomial Second Order Method. 

Polynomial second order trend line has been set 

It follows the equation Y = 353.82X 2 +7153.5 X+30122 

From this equation, projected population for the year 2006 = 353.82*(6.5) 2 +7153.5 x 6.5 + 30122 

= 91,561 

(ii) Projection By Power Function. 

Power Function trend line has been set 

It follows the equation Y =35398 X 0.4535 

From this equation, projected population for the year 2006 = 35398 (6.5) 0.4535 

= 82,790 

Other Population Projections by using the Graphical Methods are done by considering the respective Trend line of the particular method. 

135

Appendix III: Minutes of Meeting on Consultancy Service for Conversion of City 

Corporate Plan into Business Plan for Karaikudi Municipality held at 

Council Hall, Karaikudi Municipality on July 3, 2006. 

List of Participants 

S.No Name Designation 

1 Thirumathi C. Sumathi Chairman - Karaikudi 

Municipality 

2 Thiru R. Govindarasan Vice – Chairman 

3 Thirumathi R. Punkodiarumaikan Commissioner 

4 Thiru D. Chandra Sekaran ME, Karaikudi Municipality 

5 Thiru P. Muruganandham T.P.I, Karaikudi Municipality 

6 Thiru M. Balasubramanian H1, Karaikudi Municipality 

7 Thiru S. Durai Raj Ex-MLA 

8 Thiru A. Raja Mohamad MC 

9 Thiru A. Balaswamy MC 

10 Thirumathi S. Latha MC 

11 Thirumathi Malarkodi Daivasikamani MC 

12 Thiru Subramanian MC – Ward 25 

13 Thirumathi D. Bhakyalakshmi MC - Ward 30 

14 Thirumathi Valsala MC 

15 Thirumathi Deivarani MC 

16 Thiru K. Arumugam MC – Ward 8 

17 Thiru Noormohamad MC – Ward 16 

18 Thiru Anbazagan MC – Ward 36 

19 Thiru M. Rajandran MC – Ward 7 

20 Thiru Muthaiya MC 

21 Thiru P. Vairavan MC – Ward 24 

22 Thiru MN. Naehiappan MC – Ward 9 

23 Thiru S. Ramaswamy MC – Ward 12 

24 Thiru KSS. Dravidamani MDMK 

25 Thiru N. Ilankovan EE - TNEB 

26 Thiru P.S. Yogamoorthy EE – GWD 

27 Thiru AL. Valliappan AD- GWD 

28 Thiru S. Veerappa AEE – TNEB 

29 Thiru MR. Subramanian AE – TNEB 

30 Thiru R. Singaravelan AE – TNEB 

31 Thiru J. Suramanian AE – TNEB 

32 Thiru K. Ganesan A.C. College of Engg. & Tech. 

33 Thiru M. Shanmugam Alagappa Polytechnic 

34 Thirumathi Pazaniammal Headmistress 

35 Thirumathi Meenalaksmi Headmistress 

36 Thirumathi N. Velammal M.E. School 

37 Thirumathi R.Valliappan Headmaster – SMSV HSS 

38 Thiru D. Jeyasingh Headmaster – RMS 

39 Thiru C. Rajasekaran Headmaster – VDC

S.No Name Designation 

40 Thiru N. Kathamuthu Headmaster 

41 Thiru K. Malaiswamy Headmaster 

42 Thiru R. Ravindaran Headmaster 

43 Thiru N. Balasubramanian Headmaster 

44 Thirumathi M. Kasthuri Headmaster 

45 Thiru A.Shahul Mamood Senior Citizen 

46 Thiru P. Vairavan Senior Citizen 

47 Thiru Senthil Kumar Senior Citizen 

48 Thiru Manivel Senior Citizen 

49 Thiru P. Vadivel Senior Citizen 

50 Thiru R.G. Saravanan Senior Citizen 

51 Thiru N. Daniel Senior Citizen 

52 Thiru K.M.Sampath Senior Citizen 

53 Thiru P. Vikram Senior Citizen 

54 Thiru Palaniswamy Senior Citizen 

55 Thiru A.M. Hari Prasad WSAPL 

56 Thiru E. Gopinath WSAPL 

The Chairperson and the Commissioner presided over the meeting in the presence of 

councilors, senior citizens, NGOs and Alagappa University Professors and other line 

agencies. The details on the discussion held and decision taken are listed below: 

1. It was discussed, that the present sand bed is being polluted due to septic tanks and 

sullage water from the residential areas. Hence, in order to avoid this problem Under 

Ground Drainage system is suggested to protect geological formation to sand bed 

under the town, which is main drinking water source for the Municipality. 

2. Protection of water bodies, rejuvenation of lakes and desilting and strengthen of 

Odais with top priority is suggested for the future. 

3. Spacing should be maintained for the water extracting from bore wells at Sambai 

Otthu source. 

4. Widening of Madurai road was suggested in order to avoid the traffic congestion in 

the town. 

5. Tree plantation was suggested, for all 40 feet roads in order to avoid noise and air 

pollution respectively. 

6. Parks and playground should be developed at all municipal vacant lands. 

7. Construction of electrical crematorium was suggested.

8. It is suggested that an integrated approach to introduce the solar street lighting in 

order to reduce the energy consumption and electricity charges can be taken up. 

9. By- Pass road has to be developed from Trichy road to Madurai road. 

10. To protect the surroundings of Sambai Otthu water source, it is very essential to 

include the Sankarapuram Panchayat area into municipal area. 

Prioritization for Municipality 


2. Implementation of Under Ground Drainage 

3. Rejuvenation of Water bodies 

4. Improvement of Roads 

5. Improvement of Storm of Drains

Some of the individual stakeholder’s suggestions are given below 

Commissioner and Chairman briefing the 

project to the Stake holders 

One of Stake holders expressing their views 

on Projects 

Thiru S. Durai Raj Ex-MLA insisting on 

UGD project. 

NGOs and Councilors are expressing their 

views on Projects

Business Plan - Karaikudi Municipality 

Appendix IV: Municipal Finances 

17- Karaikudi Municipality - Abstract of Accounts 1- Income and Expenditure Statement 

Head of Account 2000-01 2001-02 2002-03 2003-04 

Rs. Lakh 

Opening Balance 

REVENUE ACCOUNT 

I Revenue Income 

A Tax- Own Sources 

1 Property Tax (General Purpose) - 58% of Total PT 145.50 

2 Property Tax (Education Purpose) - 16% of Total PT 40.42 

3 Profession Tax 11.48 

4 Other Taxes & Charges 0.01 

Tax- Own Sources 197.40 

B Assigned Revenues 

1 Entertainment Tax 22.17 

2 Surcharge on Stamp Duty 35.16 

3 Other Transfers - 

Assigned Revenues 57.33 

C Non Tax- Own Sources 

1 Income from Municipal Properties and Markets 37.66 

2 License Income (Trade, etc.) 8.57 

3 Income from Special Services 0.14 

4 Income from Sale Proceeds 0.48 

5 Income from Fees and Fines 11.25 

6 Income from Interest on Deposits - 

7 Income from Investments(Excl. Interest) - 

8 Miscellaneous Income 29.49 

Non Tax- Own Sources 87.60 

D Revenue Grants 

1 State Finance Commission Grant 76.06 

2 Other Grants 21.91 

Revenue Grants 97.97 

Total- Revenue Income (Excl. W&D Fund) 440.30 

E Water and Drainage Fund 

1 Water & Drainage Tax - 26% of Total PT 64.67 

2 Water Charges 42.40 

3 Drainage Charges 0.04 

4 Income from Interest on Deposits - 

5 Water Supply & Sanitation Grant - 

6 Other Income - 

Total- W&D Fund Revenue Income 107.11 

Total- Revenue Income 547.41 

17- Abstract of Accounts 1/16 

145.60 

40.45 

11.87 

1.03 

198.95 

20.00 

47.00 

0.10 

67.10 

11.30 

6.96 

0.25 

0.45 

13.00 

0.20 

- 

31.15 

63.31 

46.62 

30.89 

77.51 

406.87 

64.71 

42.85 

- 

- 

- 

- 

107.57 

514.43 

158.22 

43.95 

16.78 

0.02 

218.97 

20.89 

82.81 

- 

103.69 

43.45 

18.62 

0.00 

0.03 

22.27 

0.60 

- 

42.98 

127.96 

161.33 

- 

161.33 

611.95 

70.32 

49.47 

- 

0.03 

- 

- 

119.82 

731.78 

171.97 

47.77 

7.62 

- 

227.35 

19.10 

96.28 

- 

115.38 

12.51 

9.09 

0.05 

0.32 

24.88 

1.21 

- 

48.93 

96.99 

32.40 

12.94 

45.34 

485.06 

76.43 

38.11 

- 

0.10 

- 

- 

114.64 

599.70 

Appendix - IV





Rs. Lakh 

II Revenue Expenditure 

A General Administration 

1 Staff Salary and Employee Related Expenses 233.24 

2 Allowances to Elected Representatives 1.11 

3 General Expenses 3.00 

4 Pensions and Gratuities 47.34 

5 Education - Staff Salary - 

6 Miscellaneous 4.51 

Establishment 289.20 

B Operation & Maintenance 

1 General Expenses 5.87 

2 Public Works and Roads 7.67 

3 Public Health and Conservancy 4.31 

4 Contractor Payment- Conservancy - 

5 Street Lighting (including Electricity Charges) 21.32 

6 Education - 

7 Vehicle and Equipment Maintenance 2.76 


Operation & Maintenance 45.92 

C Debt Servicing 

1 Public Works and Roads - 

2 Public Health and Conservancy - 

3 Others - 

Debt Servicing - 

Total- Revenue Expenditure (Excl. W&D Fund) 335.12 

D Water and Sanitation Fund 

1 Staff Salary & Employee Related Expenses 12.61 

2 Administration Expenses - 

3 Equipment Maintenance & Repairs 5.77 

4 Board Payment - 

5 Electricity Charges 37.18 

6 Vehicle Maintenance & Repairs 0.83 


8 Debt Servicing- Old 11.97 

Total- W&D Fund Revenue Expenditure 81.41 

Total- Revenue Expenditure 416.52 

Operating Surplus (W&D Revenue Fund) 25.70 

Operating Surplus (Revenue Account) 130.88 

Closing Balance-(Revenue Account) 130.88 

Transfer to Capital Account - 


231.13 

1.38 

9.54 

45.75 

- 

3.67 

291.47 

14.60 

7.40 

1.21 

- 

18.70 

8.40 

2.45 

0.15 

52.91 

- 

- 

7.00 

7.00 

351.38 

22.90 

- 

4.05 

- 

29.00 

6.90 

12.55 

23.77 

99.17 

450.55 

8.40 

63.88 

194.77 

0.05 

272.41 

1.37 

3.74 

48.40 

- 

3.82 

329.74 

10.85 

9.49 

4.37 

- 

20.12 

15.65 

3.03 

2.02 

65.53 

- 

- 

14.00 

14.00 

409.27 

24.77 

- 

1.38 

- 

36.88 

4.98 

10.26 

7.54 

85.81 

495.08 

34.01 

236.70 

431.47 

- 

290.38 

1.34 

4.48 

70.87 

- 

5.48 

372.55 

9.16 

41.52 

34.74 

- 

44.41 

0.14 

2.94 

2.63 

135.54 

- 

- 

12.88 

12.88 

520.97 

13.49 

- 

1.18 

- 

61.26 

1.58 

27.99 

11.31 

116.81 

637.78 

(2.17) 

(38.08) 

393.39 

49.41 

Appendix - IV





Rs. Lakh 

CAPITAL ACCOUNT 

III Capital Income 

A Capital Loans 


2 Street Lighting - 

3 Public Health & Conservancy - 

4 Education - 

5 Others 169.48 

Capital Loans 169.48 

B Capital Grants and Contribution 


2 Education - 

3 Others 2.75 

4 Eleventh Finance Commission Grants - 

Capital Grants and Contribution 2.75 

C Own Sources 

1 Transfer from Revenue Account - 

2 Sale of Municipal Property - 

Own Sources- Capital - 

Total- Capital Income 172.23 

Water and Drainage Fund 

D Capital Loans 

1 Water Supply - 

2 Sewerage & Sanitation - 

Capital Loans W&D Fund - 

E Capital Grants and Contribution 

1 Water Supply - 

2 Sewerage & Sanitation - 

W&D -Capital Grants and Contribution - 

F Own Sources 

1 Water Connection Charge 8.48 

2 Sewerage Connection Charge - 

W&D Own Sources- Capital 8.48 

Total W&D Fund- Capital Income 8.48 

Total- Capital Income 180.71 


- 

- 

- 

- 

5.77 

5.77 

- 

- 

13.25 

- 

13.25 

0.05 

- 

0.05 

19.07 

- 

- 

- 

- 

- 

- 

21.54 

- 

21.54 

21.54 

40.61 

- 

- 

- 

- 

18.73 

18.73 

- 

- 

3.84 

- 

3.84 

- 

- 

- 

22.57 

- 

- 

- 

- 

- 

- 

28.55 

- 

28.55 

28.55 

51.12 

- 

- 

- 

- 

23.32 

23.32 

- 

- 

194.98 

- 

194.98 

49.41 

- 

49.41 

267.71 

- 

- 

- 

48.28 

- 

48.28 

34.90 

- 

34.90 

83.18 

350.89 

Appendix - IV




Head of Account 

IV Capital Expenditure 

2000-01 2001-02 

Rs. Lakh 

2002-03 2003-04 

1 General 16.82 

- 

1.00 

2.57 

2 Remunerative Schemes - 

- 

- 

- 

3 Public Works and Roads 197.65 

- 

5.25 

- 

4 Street Lighting 3.05 

- 

- 

- 

5 Public Health & Conservancy 2.57 

- 

- 

- 

6 Education 5.31 

- 

12.10 37.88 

7 Others - 

- 

- 

- 

Total - Capital Expenditure Excl W&D Fund 225.39 

- 

18.35 40.45 


8 Water Supply 52.68 

9 Sewerage & Sanitation 13.38 

Total W&D Fund- Capital Expenditure 66.06 

Total - Capital Expenditure 291.45 

Operating Surplus (W&D Capital Account) (57.58) 

Operating Surplus (Capital Account) (110.75) 

Operating Surplus (Over all excluding revenue transfer) 20.14 

EXTRAORDINARY ACCOUNT 

V EA Income 

1 Cash at Bank/ in Hand 74.07 

3 Cess Income 57.67 

4 Cash Deposit 21.76 

5 Staff Advance 0.07 

6 Security Deposit 51.05 


Total- EA Income 204.63 

VI EA Expenditure 

1 Cess Transfers - 

2 Other- Deposits - 

3 PF and Pension - 


Total- EA Expenditure 11.92 

Operating Surplus (Extraordinary Account) 192.70 


0.05 

- 

0.05 

0.05 

21.49 

40.56 

104.39 

- 

- 

9.84 

6.30 

10.13 

- 

26.27 

- 

- 

- 

1.80 

1.80 

24.47 

0.47 

- 

0.47 

18.82 

28.08 

32.30 

269.00 

- 

- 

28.56 

3.20 

6.10 

- 

37.86 

- 

62.20 

70.10 

5.00 

137.30 

(99.44) 

102.48 

13.93 

116.41 

156.86 

(33.23) 

194.03 

106.54 

- 

- 

12.99 

5.09 

- 

- 

18.08 

- 

8.05 

- 

4.57 

12.62 

5.46 

Appendix - IV



17- Karaikudi Municipality - Abstract of Accounts 






1 Property Tax (General Purpose) - 58% of Total PT 

2 Property Tax (Education Purpose) - 16% of Total PT 

3 Profession Tax 

4 Other Taxes & Charges 



1 Entertainment Tax 

2 Surcharge on Stamp Duty 

3 Other Transfers 



1 Income from Municipal Properties and Markets 

2 License Income (Trade, etc.) 

3 Income from Special Services 

4 Income from Sale Proceeds 

5 Income from Fees and Fines 

6 Income from Interest on Deposits 

7 Income from Investments(Excl. Interest) 

8 Miscellaneous Income 

Non Tax- Own Sources 


1 State Finance Commission Grant 

2 Other Grants 


Total- Revenue Income (Excl. W&D Fund) 


1 Water & Drainage Tax - 26% of Total PT 

2 Water Charges 

3 Drainage Charges 


5 Water Supply & Sanitation Grant 

6 Other Income 

Total- W&D Fund Revenue Income 

Total- Revenue Income 


2- Income and Expenditure -Sectoral Contribution 

2000-01 2001-02 2002-03 2003-04 Average 

Percentage to Total 

33.05 

9.18 

2.61 

0.00 

44.83 

5.04 

7.99 

- 

13.02 

8.55 

1.95 

0.03 

0.11 

2.56 

- 

- 

6.70 

19.89 

17.27 

4.98 

22.25 

100.00 

60.38 

39.59 

0.04 

- 

- 

- 

100.00 

100.00 

35.79 

9.94 

2.92 

0.25 

48.90 

4.92 

11.55 

0.02 

16.49 

2.78 

1.71 

0.06 

0.11 

3.20 

0.05 

- 

7.66 

15.56 

11.46 

7.59 

19.05 

100.00 

60.16 

39.84 

- 

- 

- 

- 

100.00 

100.00 

25.86 

7.18 

2.74 

0.00 

35.78 

3.41 

13.53 

- 

16.94 

7.10 

3.04 

0.00 

0.00 

3.64 

0.10 

- 

7.02 

20.91 

26.36 

- 

26.36 

100.00 

58.69 

41.29 

- 

0.03 

- 

- 

100.00 

100.00 

35.45 

9.85 

1.57 

- 

46.87 

3.94 

19.85 

- 

23.79 

2.58 

1.87 

0.01 

0.07 

5.13 

0.25 

- 

10.09 

20.00 

6.68 

2.67 

9.35 

100.00 

66.67 

33.24 

- 

0.09 

- 

- 

100.00 

100.00 

32.53 

9.04 

2.46 

0.06 

44.10 

4.33 

13.23 

0.01 

17.56 

5.25 

2.14 

0.03 

0.07 

3.63 

0.10 

-- 

7.87 

19.09 

15.44 

3.81 

19.25 

100.00 

61.47 

38.49 

0.01 

0.03 

-- 

-- 

100.00 

100.00 

Appendix - IV







1 Staff Salary and Employee Related Expenses 

2 Allowances to Elected Representatives 

3 General Expenses 

4 Pensions and Gratuities 

5 Education - Staff Salary 

6 Miscellaneous 

Establishment 



2 Public Works and Roads 

3 Public Health and Conservancy 

4 Contractor Payment- Conservancy 

5 Street Lighting (including Electricity Charges) 

6 Education 

7 Vehicle and Equipment Maintenance 


Operation & Maintenance 




3 Others 


Total- Revenue Expenditure (Excl. W&D Fund) 


1 Staff Salary & Employee Related Expenses 

2 Administration Expenses 

3 Equipment Maintenance & Repairs 

4 Board Payment 

5 Electricity Charges 

6 Vehicle Maintenance & Repairs 


8 Debt Servicing- Old 

Total- W&D Fund Revenue Expenditure 

Total- Revenue Expenditure 

Operating Surplus (W&D Revenue Fund) 

Operating Surplus (Revenue Account) 

Closing Balance-(Revenue Account) 

Transfer to Capital Account 



2000-01 2001-02 2002-03 2003-04 Average 


69.60 

0.33 

0.90 

14.13 

- 

1.35 

86.30 

1.75 

2.29 

1.28 

- 

6.36 

- 

0.82 

1.20 

13.70 

- 

- 

- 

- 

100.00 

15.49 

- 

7.09 

- 

45.67 

1.02 

16.03 

14.70 

100.00 

100.00 

65.78 

0.39 

2.72 

13.02 

- 

1.04 

82.95 

4.16 

2.11 

0.34 

- 

5.32 

2.39 

0.70 

0.04 

15.06 

- 

- 

1.99 

1.99 

100.00 

23.09 

- 

4.08 

- 

29.24 

6.96 

12.66 

23.97 

100.00 

100.00 

66.56 

0.33 

0.91 

11.83 

- 

0.93 

80.57 

2.65 

2.32 

1.07 

- 

4.92 

3.82 

0.74 

0.49 

16.01 

- 

- 

3.42 

3.42 

100.00 

28.87 

- 

1.61 

- 

42.98 

5.80 

11.96 

8.79 

100.00 

100.00 

55.74 

0.26 

0.86 

13.60 

- 

1.05 

71.51 

1.76 

7.97 

6.67 

- 

8.52 

0.03 

0.56 

0.50 

26.02 

- 

- 

2.47 

2.47 

100.00 

11.55 

- 

1.01 

- 

52.44 

1.35 

23.96 

9.68 

100.00 

100.00 

64.42 

0.33 

1.35 

13.14 

-- 

1.09 

80.33 

2.58 

3.67 

2.34 

-- 

6.28 

1.56 

0.71 

0.56 

17.70 

-- 

-- 

1.97 

1.97 

100.00 

19.75 

-- 

3.45 

-- 

42.58 

3.78 

16.15 

14.29 

100.00 

100.00 

Appendix - IV









2 Street Lighting 

3 Public Health & Conservancy 

4 Education 

5 Others 

Capital Loans 



2 Education 

3 Others 

4 Eleventh Finance Commission Grants 

Capital Grants and Contribution 

C Own Sources 

1 Transfer from Revenue Account 

2 Sale of Municipal Property 

Own Sources- Capital 

Total- Capital Income 



1 Water Supply 

2 Sewerage & Sanitation 

Capital Loans W&D Fund 




W&D -Capital Grants and Contribution 

F Own Sources 

1 Water Connection Charge 

2 Sewerage Connection Charge 

W&D Own Sources- Capital 

Total W&D Fund- Capital Income 




2000-01 2001-02 2002-03 2003-04 Average 


- 

- 

- 

- 

98.40 

98.40 

- 

- 

1.60 

- 

1.60 

- 

- 

- 

100.00 

- 

- 

- 

- 

- 

- 

100.00 

- 

100.00 

100.00 

100.00 

- 

- 

- 

- 

30.26 

30.26 

- 

- 

69.48 

- 

69.48 

0.26 

- 

0.26 

100.00 

- 

- 

- 

- 

- 

- 

100.00 

- 

100.00 

100.00 

100.00 

- 

- 

- 

- 

82.99 

82.99 

- 

- 

17.01 

- 

17.01 

- 

- 

- 

100.00 

- 

- 

- 

- 

- 

- 

100.00 

- 

100.00 

100.00 

100.00 

- 

- 

- 

- 

8.71 

8.71 

- 

- 

72.83 

- 

72.83 

18.46 

- 

18.46 

100.00 

- 

- 

- 

58.04 

- 

58.04 

41.96 

- 

41.96 

100.00 

100.00 

-- 

-- 

-- 

-- 

55.09 

55.09 

-- 

-- 

40.23 

-- 

40.23 

4.68 

-- 

4.68 

100.00 

-- 

-- 

-- 

14.51 

-- 

14.51 

85.49 

-- 

85.49 

100.00 

100.00 

Appendix - IV






1 General 

2 Remunerative Schemes 




6 Education 

7 Others 

Total - Capital Expenditure Excl W&D Fund 




Total W&D Fund- Capital Expenditure 

Total - Capital Expenditure 

Operating Surplus (W&D Capital Account) 

Operating Surplus (Capital Account) 

Operating Surplus (Over all excluding revenue transfer) 


V EA Income 

1 Cash at Bank/ in Hand 

3 Cess Income 

4 Cash Deposit 

5 Staff Advance 

6 Security Deposit 


Total- EA Income 


1 Cess Transfers 

2 Other- Deposits 

3 PF and Pension 


Total- EA Expenditure 

Operating Surplus (Extraordinary Account) 



2000-01 2001-02 2002-03 2003-04 Average 


7.46 

- 

87.69 

1.35 

1.14 

2.36 

- 

100.00 

79.75 

20.25 

100.00 

100.00 

36.20 

28.18 

10.63 

0.04 

24.95 

36.20 

100.00 

- 

- 

- 

100.00 

100.00 

- 

- 

- 

- 

- 

- 

- 

- 

100.00 

- 

100.00 

100.00 

- 

- 

37.46 

23.98 

38.55 

- 

100.00 

- 

- 

- 

100.00 

100.00 

5.45 

- 

28.61 

- 

- 

65.94 

- 

100.00 

100.00 

- 

100.00 

100.00 

- 

- 

75.44 

8.45 

16.11 

- 

100.00 

- 

45.30 

51.06 

3.64 

100.00 

6.35 

- 

- 

- 

- 

93.65 

- 

100.00 

88.03 

11.97 

100.00 

100.00 

- 

- 

71.85 

28.15 

- 

- 

100.00 

- 

63.79 

- 

36.21 

100.00 

4.82 

-- 

29.08 

0.34 

0.28 

40.49 

-- 

75.00 

91.95 

8.05 

100.00 

100.00 

9.05 

7.05 

48.85 

15.16 

19.90 

9.05 

100.00 

-- 

27.27 

12.76 

59.96 

100.00 

Appendix - IV












































3- Income and Expenditure -Growth Trends 

2000-01 2001-02 2002-03 2003-04 Average 

Percentage increase over previous year 

-- 0.07 

-- 0.07 

-- 3.40 

-- 10,356.85 

-- 0.78 

8.67 

8.67 

41.36 

(97.96) 

10.07 

8.69 5.81 

8.69 5.81 

(54.59) (3.28) 

-- 5,129.45 

3.83 4.89 

-- (9.81) 4.43 (8.55) (4.64) 

-- 33.67 76.19 16.27 42.04 

-- -- -- -- -- 

-- 17.03 54.54 11.27 27.61 

-- (69.99) 284.54 (71.21) 47.78 

-- (18.82) 167.49 (51.17) 32.50 

-- 78.57 (98.40) 1,150.00 376.72 

-- (5.64) (94.39) 1,167.33 355.77 

-- 15.51 71.31 11.72 32.85 

-- -- 201.89 100.40 151.15 

-- -- -- -- -- 

-- 5.62 37.99 13.83 19.15 

-- (27.73) 102.11 (24.20) 16.73 

-- (38.71) 

-- 41.01 

-- (20.88) 

-- (7.59) 

246.06 (79.92) 42.48 

-- -- 41.01 

108.14 (71.90) 5.12 

50.41 

(20.74) 

7.36 

-- 0.07 8.67 8.69 5.81 

-- 1.07 15.45 (22.96) (2.15) 

-- -- -- -- -- 

-- -- -- 233.33 233.33 

-- -- -- -- -- 

-- -- -- -- -- 

-- 0.43 11.40 (4.33) 2.50 

- 

-- (6.02) 42.25 (18.05) 6.06 

Appendix - IV













Establishment 







6 Education 







3 Others 




















2000-01 2001-02 2002-03 2003-04 Average 


-- (0.90) 17.86 6.60 7.85 

-- 24.32 (0.72) (2.19) 7.14 

-- 217.67 (60.80) 19.79 58.89 

-- (3.35) 5.79 46.43 16.29 

-- -- -- -- -- 

-- (18.65) 4.09 43.46 9.63 

-- 0.79 13.13 12.98 8.97 

-- 148.83 (25.68) (15.58) 35.86 

-- (3.46) 28.24 337.51 120.77 

-- (71.89) 261.16 694.97 294.74 

-- -- -- -- -- 

-- (12.27) 7.59 120.73 38.68 

-- -- 86.31 (99.11) (6.40) 

-- (11.10) 23.67 (2.97) 3.20 

-- (96.26) 1,246.67 30.20 393.54 

-- 15.23 23.85 106.84 48.64 

-- -- -- -- -- 

-- -- -- -- -- 

-- -- 100.00 (8.00) 46.00 

-- -- 100.00 (8.00) 46.00 

-- 4.85 16.48 27.29 16.21 

-- 81.63 8.17 (45.54) 14.75 

-- -- -- -- -- 

-- (29.85) (65.93) (14.49) (36.76) 

-- -- -- -- -- 

-- (21.99) 27.17 66.11 23.76 

-- 733.23 (27.83) (68.27) 212.38 

-- (3.84) (18.25) 172.81 50.24 

-- 98.58 (68.28) 50.00 26.77 

-- 21.82 (13.47) 36.13 14.82 

-- 8.17 

9.88 

28.82 

15.63 

Appendix - IV











4 Education 

5 Others 

Capital Loans 



2 Education 

3 Others 



C Own Sources 














F Own Sources 








2000-01 2001-02 2002-03 2003-04 Average 


-- -- -- -- -- 

-- -- -- -- -- 

-- -- -- -- -- 

-- -- -- -- -- 

-- (96.60) 224.61 24.51 50.84 

-- (96.60) 224.61 24.51 50.84 

-- -- -- -- -- 

-- -- -- -- -- 

-- 381.82 (71.02) 4,977.60 1,762.80 

-- -- -- -- -- 

-- 381.82 (71.02) 4,977.60 1,762.80 

-- -- -- -- -- 

-- -- -- -- -- 

-- -- -- -- -- 

-- (88.93) 

18.35 

1,086.13 

338.52 

-- -- -- -- -- 

-- -- -- -- -- 

-- -- -- -- -- 

-- -- -- -- -- 

-- -- -- -- -- 

-- -- -- -- -- 

-- 154.10 32.54 22.24 69.63 

-- -- -- -- -- 

-- 154.10 32.54 22.24 69.63 

-- 154.10 

-- (77.53) 

32.54 

25.88 

191.35 

586.40 

126.00 

178.25 

Appendix - IV






1 General 





6 Education 

7 Others 











V EA Income 


3 Cess Income 















2000-01 2001-02 2002-03 2003-04 Average 


-- -- -- 157.00 157.00 

-- -- -- -- -- 

-- -- -- -- -- 

-- -- -- -- -- 

-- -- -- -- -- 

-- -- -- 213.06 213.06 

-- -- -- -- -- 

-- -- -- 120.44 120.44 

-- (99.91) 840.00 21,704.26 7,481.45 

-- -- -- -- -- 

-- (99.92) 840.00 24,668.09 8,469.39 

-- (99.98) 

37,540.00 

733.48 

12,724.50 

-- -- -- -- -- 

-- (54.77) 190.22 (54.52) 26.98 

-- 8,530.14 (49.21) 59.06 2,846.66 

-- (80.16) (39.76) -- (59.96) 

-- -- -- -- -- 

-- (87.16) 

44.13 

(52.25) 

(31.76) 

-- -- -- -- -- 

-- -- -- (87.06) (87.06) 

-- -- -- -- -- 

-- (84.91) 177.78 (8.60) 28.09 

-- (84.91) 

7,527.78 

(90.81) 

2,450.69 

Appendix - IV












































4- FOP Assumptions 

SAGR CAGR CAGR Variable 

% pa % pa Rs. pc/ pa %pa 

5.81 

5.81 

(3.28) 

5,129.45 

4.89 

5.73 

5.73 

(12.77) 

(100.00) 

4.82 

(4.64) (4.85) 

42.04 39.90 

-- (100.00) 

27.61 26.25 

4.73 

4.73 

(13.59) 

(100.00) 

3.83 

5.00% 

5.00% 

(5.75) 5.00% 

38.58 15.00% 

-- 

25.06 

5.00% 

47.78 (30.74) (31.40) 10.00% 

32.50 

1.97 

1.01 5.00% 

376.72 (29.05) (29.72) 5.00% 

355.77 (12.45) (13.28) 5.00% 

32.85 30.27 29.04 15.00% 

151.15 145.97 

-- 6.00% 

-- -- -- 5.00% 

19.15 18.38 17.27 10.00% 

16.73 

3.45 

2.48 

42.48 

41.01 

5.12 

7.36 

(24.76) 

(16.09) 

(22.65) 

3.28 

(25.47) 

(16.89) 

(23.38) 

2.31 

15.00% 

5.00% 

5.81 

5.73 

4.73 

(2.15) (3.49) (4.40) 

-- (100.00) (100.00) 

233.33 233.33 

-- 15.00% 

-- -- -- 5.00% 

-- -- -- 5.00% 

2.50 

2.29 

1.33 

6.06 

3.09 

2.12 

Appendix - IV













Establishment 







6 Education 







3 Others 






















7.85 

7.58 

6.56 8.00% 

7.14 

6.48 

5.47 5.00% 

58.89 14.26 13.18 13.00% 

16.29 14.40 13.32 5.00% 

-- -- -- 5.00% 

9.63 

6.70 

5.69 15.00% 

8.97 

8.81 

7.78 

35.86 16.01 14.91 5.00% 

120.77 75.62 73.96 5.00% 

294.74 100.58 98.68 15.00% 

-- -- -- 0.00% 

38.68 27.72 26.52 20.00% 

(6.40) (87.09) 

-- 5.00% 

3.20 

2.18 

1.22 5.00% 

393.54 (13.11) (13.93) 5.00% 

48.64 43.45 42.09 

-- -- -- 

-- -- -- 

46.00 35.65 

-- 

46.00 35.65 

-- 

16.21 15.84 14.75 

14.75 

2.28 

1.31 5.00% 

-- -- -- 5.00% 

(36.76) (41.10) (41.65) 5.00% 

-- -- -- 5.00% 

23.76 18.11 17.00 15.00% 

212.38 24.03 22.86 15.00% 

50.24 28.96 27.74 10.00% 

26.77 (1.87) (2.80) 

14.82 12.79 11.73 

15.63 

15.26 

14.17 

Appendix - IV











4 Education 

5 Others 

Capital Loans 



2 Education 

3 Others 



C Own Sources 














F Own Sources 










-- -- -- 

-- -- -- 

-- -- -- 

-- -- -- 

50.84 (48.37) 

-- 

50.84 (48.37) 

-- 

-- -- -- 5.00% 

-- -- -- 5.00% 

1,762.80 313.89 309.99 15.00% 

-- -- -- 5.00% 

1,762.80 313.89 309.99 15.00% 

338.52 

-- 3,043.56 

-- 

-- -- -- 

-- 3,043.56 

-- 

15.84 

14.75 

-- -- -- 

-- -- -- 

-- -- -- 

-- -- -- 5.00% 

-- -- -- 5.00% 

-- -- -- 

69.63 60.27 58.76 

-- -- -- 

69.63 60.27 58.76 

126.00 

178.25 

114.09 

24.76 

112.07 

23.58 

Appendix - IV






1 General 





6 Education 

7 Others 











V EA Income 


3 Cess Income 

















157.00 (46.54) (47.04) 

-- -- -- 

-- (100.00) (100.00) 

-- (100.00) (100.00) 

-- (100.00) (100.00) 

213.06 92.52 90.70 

-- -- -- 

120.44 (43.59) (44.13) 

7,481.45 24.83 

-- 1.36 

8,469.39 20.79 

12,724.50 

(18.66) 

-- (100.00) 

26.98 (15.80) 

2,846.66 311.59 

(59.96) (100.00) 

-- (100.00) 

(31.76) 

(55.46) 

-- -- 

(87.06) (87.06) 

-- (100.00) 

28.09 (27.36) 

2,450.69 

1.91 

23.65 

0.40 

19.65 

(19.43) 

Appendix - IV

Appendix IV: Ward Level Priorities - Short Term Project Details 


Sector Component Quantity Unit Cost (Rs. Lakhs) 

Ward 1 1 CIP-Roads 

i Widening - Km - 

ii Up-gradation - BT to CC - Km - 

iii Up-gradation - WBM to BT - Km - 

iv Up-gradation - Earthen to BT 2.81 Km 28.05 

v New Formation - CC Roads 0.34 Km 19.28 

vi New Formation - BT Roads 0.82 Km 8.21 

vii New Formation - WBM Roads 0.67 Km 4.53 

2 CIP-Water 

i Distribution Network Reach 1.80 Km 5.40 

3 CIP-Storm water Drains 

i Upgradation - Kutcha to Pucca Open 1.06 Km 8.97 

ii Upgradation - Kutcha to Pucca Closed - Km - 

iii Upgradation - Pucca Open to Closed - Km - 

iv New Formation - Pucca Open 1.10 Km 13.53 

v New Formation - Pucca Closed 4.02 Km 58.33 

4 CIP-Street Lights 

i No. of Tube Lights - No.s - 

ii No. of High Power Lamps 37.00 No.s 3.33 

5 CIP-Slums 

i Seats of Public Conveniences 30.08 No.s 18.80 


i Widening - 

ii Up-gradation - BT to CC - 

iii Up-gradation - WBM to BT 1.39 

iv Up-gradation - Earthen to BT - 

v New Formation - CC Roads - 

vi New Formation - BT Roads - 

vii New Formation - WBM Roads - 

2 CIP-Water 

i Distribution Network Reach 0.92 


i Upgradation - Kutcha to Pucca Open - 

ii Upgradation - Kutcha to Pucca Closed - 

iii Upgradation - Pucca Open to Closed 1.26 

iv New Formation - Pucca Open - 

v New Formation - Pucca Closed 0.43 


i No. of Tube Lights 54.00 

ii No. of High Power Lamps 17.00 

5 CIP-Slums 

i Seats of Public Conveniences - 


i Widening 1.36 



iv Up-gradation - Earthen to BT 0.60 




2 CIP-Water 




Km - 

Km - 

Km 6.26 

Km - 

Km - 

Km - 

Km - 

Km 2.76 

Km - 

Km - 

Km 12.58 

Km - 

Km 6.26 

No.s 2.43 

No.s 1.53 

No.s - 

Km 5.44 

Km - 

Km 6.19 

Km 6.00 

Km - 

Km - 

Km - 

Km 5.67 

Km - 

1



ii Upgradation - Kutcha to Pucca Closed 0.85 Km 7.82 

iii Upgradation - Pucca Open to Closed 1.93 Km 19.34 

iv New Formation - Pucca Open - Km - 



i No. of Tube Lights 77.00 No.s 3.47 


5 CIP-Slums 



i Widening - 

ii Up-gradation - BT to CC 0.10 






2 CIP-Water 

i Distribution Network Reach - 






v New Formation - Pucca Closed - 


i No. of Tube Lights - 


5 CIP-Slums 

i Seats of Public Conveniences 22.36 









2 CIP-Water 











5 CIP-Slums 



i Widening - 




Km - 

Km 0.10 

Km 1.58 

Km 3.20 

Km - 

Km - 

Km - 

Km - 

Km - 

Km - 

Km 12.48 

Km - 

Km - 

No.s - 

No.s 0.81 

No.s 13.97 

Km 7.09 

Km 0.34 

Km 5.88 

Km - 

Km - 

Km - 

Km - 

Km 10.53 

Km - 

Km - 

Km 10.53 

Km - 

Km 44.24 

No.s 0.81 

No.s 3.96 

No.s 43.14 

Km - 

Km 0.27 

Km 8.86 

Km 5.35 

2



v New Formation - CC Roads - Km - 

vi New Formation - BT Roads - Km - 

vii New Formation - WBM Roads - Km - 

2 CIP-Water 



i Upgradation - Kutcha to Pucca Open - Km - 




v New Formation - Pucca Closed - Km - 




5 CIP-Slums 

i Seats of Public Conveniences - No.s - 









2 CIP-Water 





iii Upgradation - Pucca Open to Closed - 

iv New Formation - Pucca Open 1.52 





5 CIP-Slums 



i Widening - 


iii Up-gradation - WBM to BT - 



vi New Formation - BT Roads 6.34 

vii New Formation - WBM Roads 1.06 

2 CIP-Water 











5 CIP-Slums 

Km 3.85 

Km 0.28 

Km 6.69 

Km 6.20 

Km - 

Km - 

Km - 

Km 4.50 

Km - 

Km - 

Km - 

Km 18.63 

Km 48.54 

No.s - 

No.s 3.24 

No.s - 

Km - 

Km - 

Km - 

Km 12.50 

Km - 

Km 63.44 

Km 7.13 

Km 19.83 

Km - 

Km - 

Km - 

Km 61.39 

Km 99.25 

No.s - 

No.s 5.13 

3





i Widening - 







2 CIP-Water 











5 CIP-Slums 



i Widening - 







2 CIP-Water 











5 CIP-Slums 



i Widening - 







2 CIP-Water 





Km - 

Km 0.48 

Km 6.04 

Km 26.60 

Km - 

Km - 

Km - 

Km 6.75 

Km - 

Km - 

Km - 

Km 53.33 

Km 83.36 

No.s 3.33 

No.s 3.87 

No.s - 

Km - 

Km - 

Km - 

Km 1.60 

Km - 

Km 12.92 

Km 3.34 

Km 5.31 

Km - 

Km - 

Km 5.87 

Km - 

Km 33.98 

No.s 3.65 

No.s 2.70 

No.s - 

Km - 

Km 0.11 

Km 8.49 

Km - 

Km - 

Km - 

Km - 

Km 1.71 

Km - 

Km - 

4









5 CIP-Slums 



i Widening - 




v New Formation - CC Roads 0.02 



2 CIP-Water 

i Distribution Network Reach - 










5 CIP-Slums 










2 CIP-Water 











5 CIP-Slums 








Km - 

Km - 

Km - 

Km - 

Km 1.18 

Km 1.88 

Km 0.92 

Km - 

Km - 

Km - 

Km 15.41 

Km - 

Km - 

No.s 1.89 

No.s 1.44 

No.s - 

Km 4.44 

Km - 

Km 7.24 

Km - 

Km - 

Km - 

Km - 

Km 5.10 

Km - 

Km - 

Km 32.64 

Km - 

Km - 

No.s 3.69 

No.s 2.52 

No.s - 

Km 5.44 

Km - 

Km 9.90 

Km - 

Km - 

5





2 CIP-Water 











5 CIP-Slums 



i Widening - 







2 CIP-Water 











5 CIP-Slums 










2 CIP-Water 











5 CIP-Slums 


Km - 

Km - 

Km 10.92 

Km - 

Km - 

Km - 

Km - 

Km 3.75 

Km - 

Km - 

Km 27.76 

Km - 

Km - 

No.s 1.85 

No.s 1.80 

No.s - 

Km 1.53 

Km - 

Km 3.15 

Km - 

Km - 

Km - 

Km - 

Km 3.12 

Km - 

Km - 

Km 18.56 

Km - 

Km - 

No.s 0.63 

No.s 0.09 

No.s - 

6




i Widening - 




v New Formation - CC Roads 0.21 



2 CIP-Water 











5 CIP-Slums 










2 CIP-Water 











5 CIP-Slums 



i Widening - 







2 CIP-Water 



i Upgradation - Kutcha to Pucca Open 0.57 



Km - 

Km - 

Km - 

Km - 

Km 11.88 

Km - 

Km 1.42 

Km 5.82 

Km - 

Km - 

Km 24.79 

Km - 

Km - 

No.s 2.07 

No.s 1.71 

No.s - 

Km 5.23 

Km 0.15 

Km - 

Km - 

Km - 

Km - 

Km - 

Km 2.25 

Km - 

Km - 

Km 17.44 

Km - 

Km - 

No.s - 

No.s 0.45 

No.s - 

Km - 

Km - 

Km 4.94 

Km 8.86 

Km - 

Km 40.51 

Km - 

Km 26.61 

Km 4.80 

Km - 

Km - 

7



iv New Formation - Pucca Open 1.84 Km 22.56 





5 CIP-Slums 










2 CIP-Water 











5 CIP-Slums 










2 CIP-Water 











5 CIP-Slums 



i Widening - 






Km 9.79 

Km 0.27 

Km - 

Km - 

Km - 

Km - 

Km - 

Km 6.39 

Km - 

Km - 

Km 21.70 

Km - 

Km 15.86 

No.s 3.11 

No.s 2.70 

No.s - 

Km 8.33 

Km - 

Km 5.96 

Km 2.70 

Km - 

Km - 

Km - 

Km 6.30 

Km - 

Km - 

Km 16.54 

Km - 

Km 39.98 

No.s 3.20 

No.s 2.25 

No.s - 

Km - 

Km 0.10 

Km 3.80 

Km 4.61 

Km - 

Km - 

8




2 CIP-Water 











5 CIP-Slums 










2 CIP-Water 




ii Upgradation - Kutcha to Pucca Closed 0.85 







5 CIP-Slums 



i Widening - 







2 CIP-Water 











5 CIP-Slums 


Km 0.84 

Km 0.19 

Km 1.87 

Km 5.30 

Km - 

Km - 

Km - 

Km 5.07 

Km - 

Km 7.82 

Km 16.88 

Km - 

Km - 

No.s 1.62 

No.s 0.90 

No.s - 

Km - 

Km - 

Km 7.35 

Km 3.30 

Km - 

Km - 

Km - 

Km 6.21 

Km - 

Km 8.79 

Km 26.81 

Km - 

Km - 

No.s 5.00 

No.s 2.88 

No.s - 

9




i Widening 0.44 Km 1.74 


iii Up-gradation - WBM to BT - Km - 




vii New Formation - WBM Roads 0.06 Km 0.43 

2 CIP-Water 









i No. of Tube Lights - No.s - 


5 CIP-Slums 










2 CIP-Water 











5 CIP-Slums 










2 CIP-Water 







Km 8.10 

Km - 

Km - 

Km - 

Km - 

Km - 

Km - 

Km 5.34 

Km - 

Km - 

Km 34.71 

Km - 

Km - 

No.s 2.93 

No.s 2.79 

No.s - 

Km 7.06 

Km - 

Km - 

Km - 

Km - 

Km - 

Km - 

Km 6.21 

Km - 

Km - 

Km 21.18 

Km - 

10







5 CIP-Slums 










2 CIP-Water 











5 CIP-Slums 



i Widening - 







2 CIP-Water 











5 CIP-Slums 



i Widening - 







Km 6.25 

Km - 

Km 13.50 

Km - 

Km - 

Km - 

Km - 

Km 17.37 

Km - 

Km - 

Km 0.17 

Km - 

Km 79.16 

No.s 7.61 

No.s 4.86 

No.s - 

Km - 

Km - 

Km 8.19 

Km - 

Km - 

Km - 

Km - 

Km 4.86 

Km - 

Km - 

Km 24.58 

Km - 

Km - 

No.s 1.89 

No.s 2.07 

No.s - 

Km - 

Km 0.30 

Km 12.14 

Km 10.00 

Km - 

Km - 

Km - 

11



2 CIP-Water 











5 CIP-Slums 










2 CIP-Water 











5 CIP-Slums 










2 CIP-Water 











5 CIP-Slums 



Km 0.61 

Km 0.29 

Km 3.24 

Km - 

Km - 

Km - 

Km - 

Km 4.05 

Km - 

Km - 

Km 34.86 

Km - 

Km - 

No.s 2.39 

No.s 3.42 

No.s 12.32 

Km 2.91 

Km 0.18 

Km - 

Km 3.50 

Km - 

Km - 

Km 1.15 

Km 3.81 

Km - 

Km - 

Km 21.56 

Km - 

Km - 

No.s 0.81 

No.s 1.17 

No.s 2.32 

12



i Widening 0.73 Km 2.93 


iii Up-gradation - WBM to BT 0.51 Km 2.31 





2 CIP-Water 











5 CIP-Slums 



i Widening - 







2 CIP-Water 











5 CIP-Slums 



i Widening - 







2 CIP-Water 



i Upgradation - Kutcha to Pucca Open 1.00 




Km - 

Km - 

Km 8.47 

Km 14.00 

Km - 

Km 7.46 

Km - 

Km 10.05 

Km - 

Km 8.70 

Km 22.64 

Km - 

Km 15.49 

No.s - 

No.s 4.23 

No.s 35.13 

Km - 

Km 0.15 

Km 3.60 

Km 4.50 

Km - 

Km - 

Km - 

Km 9.51 

Km 8.49 

Km 0.24 

Km - 

Km - 

13







5 CIP-Slums 



i Widening - 







2 CIP-Water 











5 CIP-Slums 


Km - 

Km - 

Km 7.44 

Km 4.00 

Km - 

Km - 

Km - 

Km 6.63 

Km - 

Km - 

Km 22.33 

Km - 

Km 20.76 

No.s 3.56 

No.s 3.60 

No.s - 

14

Appendix VI: Draft Memorandum of Agreement 

DRAFT MEMORANDUM OF AGREEMENT BETWEEN URBAN LOCAL BODY AND 

TAMILNADU URBAN INFRASTRUCTURE FINANCIAL SERVICES LIMITED 

Dated ___________________________ 

THIS AGREEMENT is made on this ___________________ day of 

_______________,2006 ___________________ between the Tamilnadu Urban 

Infrastructure Financial Services Ltd., and Urban Local Body. 

WHEREAS the projects identified in the City Corporate Cum Business Plan seeks 

financial assistance from the TNUIFSL under the World Bank AID. 

WHEREAS the projects identified in the City Corporate Cum Business Plan, in pursuance 

of the requirements for Comprehensive City Development, fully detailed in the City 

Corporate Cum Business Plan: 

AND WHEREAS the comprehensive infrastructure projects identified in the City 

Corporate Cum Business Plan has prepared feasibility and detailed project reports: 

AND WHEREAS municipality has to implement the reform agenda, as per the timeline 

indicated in the reform agenda. 

AND WHEREAS the projects identified in the City Corporate Cum Business Plan has 

considered the City Corporate cum Business Plan Report and found them consistent with 

the goals and objectives of CCP-BP: 

Municipal Commissioner 

Managing Director 

Tamil Nadu Urban Infrastructure Financial Services 

Limited

NOW THE PARTIES WITNESSED as follows: 

1. That the sustainable prioritize infrastructure projects identified in the City Corporate 

cum Business Plan report will be taken up as given in the Memorandum of Agreement. 

(a) __________________________________ 

(b) ________________________________ 

(c) ________________________________ 

2. The TNUIFSL and the Local Body should engage Third party quality control agency to 

check quality and audit. 

3. Local Body is the responsible agency to see the progress of the projects, progress of the 

ongoing projects and the implementation of reforms agenda. 

4. That the parties to the agreement further covenant that in case of a dispute between the 

parties the matter will be resolved to arbitration within the provisions of the arbitration and 

conciliation Act, 1996 and the rules framed there under and amended from time to time. 

The matter in dispute shall be referred to __________________ (Insert a name of an 

arbitrator) as arbitrator, however, in case such person refuses to act as arbitrator, or is 

rendered, unable because of sickness or otherwise, or dies, ________________ (name of 

the second person for arbitrator) shall act as arbitrator between the parties and the dispute 

shall be referred to such person and still in case this second person is not available for any 

reason to act as arbitrator between the parties, both parties shall name one person of their 

choice as arbitrator and decision such arbitration shall be final and binding on the parties. 

IN WITNESS HEREOF all the parties have put their hands on these presents of 

Memorandum of Agreement in the presence of witnesses. 

WITTNESES: 

1. ____________________ TNUIFSL 

2. _____________________ Or 

Urban Local Body 

Municipal Commissioner 

(Government of Tamilnadu) 

Managing Director 

Tamil Nadu Urban Infrastructure Financial Services 

Limited

City Corporate Cum Business Plan - Municipal

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