City Development Plan - Municipal

Disclaimer: 

TNUIFSL 

City Corporate cum Business Plan for Dharapuram 

The contents of this report are based primarily on discussions with Dharapuram 

Municipality and information, secondary data /Reports available with the Municipality 

including our discussions with the Operations Working Group (OWG) representing stake 

holders of the city. 

Based on the available data and information provided to us, M/s Darashaw & Company Pvt. 

Ltd has prepared the Final Report. 

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Table of Contents… 

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1 PROJECT BACKGROUND................................................................................................................ 1-1 

1.1 CITY CORPORATE CUM BUSINESS PLAN ....................................................................................... 1-1 

1.2 APPROACH AND METHODOLOGY ................................................................................................... 1-2 

1.2.1 Inception Stage.......................................................................................................................... 1-4 

1.2.2 Interim Stage ............................................................................................................................. 1-7 

1.2.3 Draft Final stage.....................................................................................................................1-10 

1.2.4 Final Report.............................................................................................................................1-13 

2 TOWN PROFILE .................................................................................................................................. 2-1 

2.1 REGIONAL SETTING AND NETWORK LINKAGES.............................................................................. 2-1 

2.2 DEMOGRAPHY................................................................................................................................. 2-3 

2.3 SOCIAL CHARACTERISTICS ............................................................................................................. 2-4 

2.3.1 Social composition .................................................................................................................... 2-4 

2.3.2 Gender Ratio ............................................................................................................................. 2-4 

2.3.3 Literacy levels............................................................................................................................ 2-5 

2.4 PHYSICAL CHARACTERISTICS ......................................................................................................... 2-5 

2.4.1 Geology and soil type................................................................................................................ 2-5 

3 PHYSICAL PLANNING AND GROWTH MANAGEMENT....................................................... 3-1 

3.1 LAND USE........................................................................................................................................ 3-2 

3.2 PROPOSED LAND USE FOR 2021...................................................................................................... 3-3 

4 ECONOMIC DEVELOPMENT.......................................................................................................... 4-1 

4.1 ECONOMIC BASE OF THE TOWN ...................................................................................................... 4-1 

4.1.1 Occupational pattern ................................................................................................................ 4-1 

4.2 INDUSTRIES IN DHARAPURAM........................................................................................................ 4-2 

4.3 TOURISM POTENTIAL ...................................................................................................................... 4-2 

5 PHYSICAL INFRASTRUCTURE ............................................................................................................ 5-1 

5.1 WATER SUPPLY ........................................................................................................................................ 5-1 

5.1.1 Water supply Scheme...................................................................................................................... 5-1 

5.1.2 Water supply system ....................................................................................................................... 5-1 

5.1.3 Water Availability ........................................................................................................................... 5-3 

5.1.4 Service adequacy ............................................................................................................................ 5-4 

5.2 SEWERAGE AND SANITATION.................................................................................................................. 5-4 

5.2.1 Sewerage system in Dharapuram .................................................................................................. 5-5 

5.2.2 Sanitation facilities in Dharapuram.............................................................................................. 5-5 

5.3 STORM WATER DRAINAGE...................................................................................................................... 5-5 

5.4 SOLID WASTE MANAGEMENT................................................................................................................. 5-6 

5.4.1 Generation and collection.............................................................................................................. 5-6 

5.4.2 Disposal and treatment................................................................................................................... 5-7 

5.4.3 Service Adequacy............................................................................................................................ 5-8 

5.5 TRAFFIC AND TRANSPORTATION............................................................................................................. 5-8 

5.5.1 City level road network ................................................................................................................5-10 

5.5.2 Transport system...........................................................................................................................5-10 

5.5.3 Bus Stand infrastructure...............................................................................................................5-10 

5.5.4 Service adequacy ..........................................................................................................................5-10 

5.6 STREET LIGHTING ..................................................................................................................................5-11 

5.6.1 Service Adequacy..........................................................................................................................5-11 

5.7 PROBLEMS AND ISSUES ..........................................................................................................................5-12 

6 SOCIO-ECONOMIC INFRASTRUCTURE ........................................................................................... 6-1 

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6.1 HEALTH .................................................................................................................................................... 6-1 

6.2 EDUCATION .............................................................................................................................................. 6-1 

6.3 OTHER AMENITIES.................................................................................................................................... 6-2 

6.4 PROBLEMS AND ISSUES............................................................................................................................ 6-4 

7 SLUMS AND URBAN POVERTY ............................................................................................................ 7-1 

7.1 SLUMS IN DHARAPURAM......................................................................................................................... 7-1 

7.1.1 Service provision in slum areas..................................................................................................... 7-2 

7.2 URBAN POOR IN DHARAPURAM............................................................................................................... 7-3 

7.3 PROBLEMS AND ISSUES............................................................................................................................ 7-3 

8 FINANCIAL STATUS................................................................................................................................. 8-1 

8.1 OVERVIEW................................................................................................................................................ 8-1 

8.2 FINANCIALS (REVENUE FUND)................................................................................................................ 8-2 

8.3 ANALYSIS OF INCOME.............................................................................................................................. 8-5 

8.3.1 Own Sources.................................................................................................................................... 8-5 

8.3.2 External Sources............................................................................................................................. 8-8 

8.4 ANALYSIS OF EXPENDITURE.................................................................................................................... 8-8 

8.4.1 Personal Costs ................................................................................................................................ 8-9 

8.4.2 Operating Expenses / Repairs & Maintenance............................................................................. 8-9 

8.4.3 Administrative Expenses...............................................................................................................8-10 

8.4.4 Finance Expenses .........................................................................................................................8-10 

8.5 SOURCE & USE OF FUNDS .....................................................................................................................8-10 

8.6 FINANCIALS (WATER SUPPLY & DRAINAGE FUND).............................................................................8-11 

8.7 FINANCIALS (ELEMENTARY EDUCATION FUND)..................................................................................8-13 

8.8 FINANCIALS CONSOLIDATED.................................................................................................................8-15 

8.9 DEMAND, COLLECTION AND BALANCE ................................................................................................8-17 

8.10 OUTSTANDING LOAN AND NON-DEBT LIABILITY..............................................................................8-19 

9 INSTITUTIONAL CAPACITY ASSESSMENT..................................................................................... 9-1 

9.1 INSTITUTIONAL STRUCTURE.................................................................................................................... 9-1 

10 DEMAND ASSESSMENT.......................................................................................................................10-1 

11 CONSULTATION WITH OWG............................................................................................................11-1 

11.1 OPERATIONAL WORKING GROUP........................................................................................................11-1 

11.2 SECTOR PRIORITY BASED ON OWG OPINION SURVEY .......................................................................11-7 

11.1.1 Physical Infrastructure Priority ........................................................................................11-8 

11.1.2 Social Infrastructure Priority............................................................................................11-9 

11.1.3 Environmental Issues.......................................................................................................11-10 

12 S W O T ......................................................................................................................................................12-1 

13 CONSOLIDATED ISSUES.....................................................................................................................13-1 

14 SECTORAL STRATEGY AND ACTION PLAN...............................................................................14-1 

14.1 SECTORAL STRATEGY...................................................................................................................14-1 

15 CAPITAL INVESTMENT PLAN..........................................................................................................15-1 

15.1 CIP FOR PHYSICAL INFRASTRUCTURE SECTORS..........................................................................15-2 

15.1.1 Water Supply...............................................................................................................................15-3 

15.1.2 Sewerage and Sanitation............................................................................................................15-4 

15.1.3 Storm Water Drainage ...............................................................................................................15-5 

15.1.4 Solid Waste Management...........................................................................................................15-6 

15.1.5 Roads, Traffic and Transportation ............................................................................................15-8

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15.1.6 Street Lighting...........................................................................................................................15-10 

15.2 SOCIO-ECONOMIC INFRASTRUCTURE .........................................................................................15-11 

15.3 CONSOLIDATED CAPITAL INVESTMENT PLAN...........................................................................15-13 

15.3.1 First Phase Investment Plan (2008-09 to 2012 – 13).............................................................15-13 

15.3.2 Second Phase Investment Plan (2013-14 to 2017 – 18).........................................................15-16 

15.3.3 Third Phase Investment Plan (2018-19 to 2022 – 23) ...........................................................15-18 

16 RISK ANALYSIS......................................................................................................................................16-1 

17 ASSET MANAGEMENT PLAN............................................................................................................17-1 

17.1 LIST OF ASSETS:...................................................................................................................................17-1 

17.2 OPERATIONS AND MAINTENANCE.......................................................................................................17-4 

17.2.1 O&M of social infrastructure assets .........................................................................................17-4 

17.2.2 O&M for Physical infrastructure assets ...................................................................................17-7 

17.3 ASSET MANAGEMENT PLAN-RECOMMENDATIONS..........................................................................17-10 

17.3.1 Asset Register............................................................................................................................17-10 

17.3.2 Asset Value and Life Cycle Management................................................................................17-10 

17.3.3 Sustainability.............................................................................................................................17-11 

17.3.4 Integration of Technical and Financial Plans........................................................................17-11 

17.3.5 Condition Assessment Survey (CAS) .......................................................................................17-11 

17.3.6 Risk Assessment ........................................................................................................................17-12 

17.3.7 Monitoring and Evaluation......................................................................................................17-12 

17.3.8 Budgeting ..................................................................................................................................17-12 

17.3.9 Training in Database management .........................................................................................17-12 

18 REFORMS AND RESOURCE MOBILIZATION .............................................................................18-1 

18.1 OVERVIEW............................................................................................................................................18-1 

18.2 REFORM MEASURES OF DHARAPURAM MUNICIPALITY ....................................................................18-2 

18.2.1 Financial & Accounting reforms...............................................................................................18-2 

18.2.2 Institutional Reforms ..................................................................................................................18-7 

18.2.3 Reforms in Physical Infrastructure..........................................................................................18-12 

18.3 ADDITIONAL RESOURCE MOBILIZATION..........................................................................................18-15 

18.3.1 Additional revenue from Social Remunerative assets ............................................................18-16 

18.3.2 Advertisement & Parking Fees ................................................................................................18-17 

19 FINANCIAL OPERATING PLAN........................................................................................................19-1 

19.1 BACKGROUND- NEED FOR AN FOP .....................................................................................................19-1 

19.2 FINANCIAL SUSTAINABILITY...............................................................................................................19-3 

19.2.1 Base Case Scenario ....................................................................................................................19-3 

19.2.2 Full project Scenario..................................................................................................................19-3 

19.2.3 Sustainable Project Scenario.....................................................................................................19-4 

19.3 ASSUMPTIONS FOR FOP ......................................................................................................................19-5 

19.3.1 Revenue Income ..........................................................................................................................19-5 

19.3.2 Revenue Expenditure................................................................................................................19-10 

19.3.3 Funding Mechanism .................................................................................................................19-11 

19.4 OUTCOME OF FINANCIAL OPERATING PLAN ..................................................................................19-12 

19.4.1 Base Case Scenario (“Business as Usual Scenario”)............................................................19-12 

19.4.2 Full Project Scenario WITHOUT Reforms.............................................................................19-13 

19.4.3 Full Project Scenario WITH Reforms .....................................................................................19-14 

19.4.4 Sustainable Investment Scenario WITH Reforms...................................................................19-17 

19.5 CONCLUSION......................................................................................................................................19-21 

19.6 RECOMMENDATIONS .........................................................................................................................19-24 

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List of Tables… 

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Table 2-A Population growth of Dharapuram.................................................................................................. 2-3 

Table 2-B Ward wise population details........................................................................................................... 2-3 

Table 2-C Social Composition .......................................................................................................................... 2-4 

Table 2-D Gender ratio ...................................................................................................................................... 2-4 

Table 2-E Literacy levels................................................................................................................................... 2-5 

Table 3-A Land Use proposed and achieved.................................................................................................... 3-2 

Table 3-B Proposed Land Use for the year 2021............................................................................................. 3-3 

Table 4-A Occupational pattern in Dharapuram (1981-1991) ........................................................................ 4-1 

Table 4-B Industries and its type in Dharapuram ............................................................................................ 4-2 

Table 4-C Religious spots in Dharapuram........................................................................................................ 4-3 

Table 5-A Water supply system in Dharapuram............................................................................................. 5-2 

Table 5-B: Details of OHT ................................................................................................................................ 5-3 

Table 5-C: Rainwater harvesting details........................................................................................................... 5-4 

Table 5-D: Performance Indicators................................................................................................................... 5-4 

Table 5-E: Public convenience in Dharapuram................................................................................................ 5-5 

Table 5-F: Storm water drainage in Dharapuram............................................................................................. 5-6 

Table 5-G: Dharapuram solid waste management ........................................................................................... 5-7 

Table 5-H: Dharapuram solid waste composition............................................................................................ 5-7 

Table 5-I Vehicle availability and trips performed for waste disposal........................................................... 5-8 

Table 5-J Performance Indicators ..................................................................................................................... 5-8 

Table 5-K City level road network in Dharapuram .......................................................................................5-10 

Table 5-L Performance Indicators related to road .........................................................................................5-10 

Table 5-M Ward wise street light details........................................................................................................5-11 

Table 5-N Performance Indicators regarding Street Lighting in Dharapuram.............................................5-11 

Table 6-A List of Educational Institutions in Dharapuram ............................................................................. 6-1 

Table 6-B Details of Markets in Dharapuram .................................................................................................. 6-2 

Table 6-C Details of Banks in Dharapuram ..................................................................................................... 6-2 

Table 6-D Details of Banks in Dharapuram ..................................................................................................... 6-3 

Table 6-E Details of Marriage halls in Dharapuram........................................................................................ 6-3 

Table 7-A Details of Slums in Dharapuram ..................................................................................................... 7-2 

Table 7-B Service adequacy in Slum areas ...................................................................................................... 7-2 

Table 7-C BPL population in Dharapuram....................................................................................................... 7-3

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Table 8-A Income & Expenditure Account ( Revenue and Capital Fund)..................................................... 8-2 

Table 8-B Balance Sheet ( Revenue and Capital Fund) .................................................................................. 8-4 

Table 8-C Property Tax Particulars................................................................................................................... 8-6 

Table 8-D Professional Tax Particulars ............................................................................................................ 8-7 

Table 8-E : Income & Expenditure Account ( Water Supply & Drainage Fund)........................................8-11 

Table 8-F : Balance Sheet ( Water Supply & Drainage Fund)......................................................................8-12 

Table 8-G :Income & Expenditure Account ( Elementary Education Fund)...............................................8-13 

Table 8-H : Balance Sheet ( Elementary Education Fund) ...........................................................................8-14 

Table 8-I : Consolidated Financials of the three funds..................................................................................8-15 

Table 8-J: DCB for the Past 4 years................................................................................................................8-17 

Table 8-K : Outstanding Loan and Non-Debt Liability................................................................................8-19 

Table 9-A: The Staff strength of the Dharapuram Municipality..................................................................... 9-2 

Table 10-A Demand Supply Gap Analysis for Physical Infrastructure........................................................10-1 

Table 10-B : Demand Assessment for Socio-Economic Infrastructure........................................................10-3 

Table 11-A Suggestions and projects .............................................................................................................11-2 

Table 13-A: Consolidated Issues.....................................................................................................................13-1 

Table 14-A Action Plan for future development of the town........................................................................14-1 

Table 15-A : Consolidated Sector wise Capital Investment requirements...................................................15-1 

Table 15-B Project List and Budget Estimates for Water Supply Works ....................................................15-3 

Table 15-C Project List and Budget Estimates for Sewerage and Sanitation Works ..................................15-5 

Table 15-D Project List and Budget Estimates for Storm Water Drainage Works .....................................15-6 

Table 15-E Project List and Budget Estimates for Solid Waste Management Works.................................15-7 

Table 15-F Project List and Budget Estimates for Roads, Traffic and Transportation Works...................15-8 

Table 15-G Project List and Budget Estimates for Street Lighting Works ................................................15-10 

Table 15-H Project List and Budget Estimates for Socio-Economic Infrastructure works......................15-12 

Table 15-I First Phase Capital Investment Plan for Dharapuram Municipality........................................15-14 

Table 15-J First Phase Capital Investment Plan for Dharapuram Municipality (after considering escalation 

cost).......................................................................................................................................................15-15 

Table 15-K Second Phase Capital Investment Plan for Dharapuram Municipality...................................15-16 

Table 15-L Second Phase Capital Investment Plan for Dharapuram Municipality (after considering 

escalation cost) .....................................................................................................................................15-17 

Table 15-M Third Phase Capital Investment Plan for Dharapuram Municipality.....................................15-18 

Table 15-N Third Phase Capital Investment Plan for Dharapuram Municipality (after considering escalation 

cost).......................................................................................................................................................15-19 

Table 17-A : Details of various social & physical infrastructure assets.......................................................17-2 

Table 17-B: O&M and Revenue generation...................................................................................................17-4 

Table 17-C Key assumptions for forecasting O & M for the existing and proposed assets........................17-7 

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Table 17-D O & M for existing physical Infrastructure assets (Short – term).............................................17-8 

Table 17-E O & M for proposed capital works.............................................................................................17-9 

Table 18-A: Collection Efficiency of key revenue sources...........................................................................18-3 

Table 18-B: Efficiency parameters of key taxes and water charges .............................................................18-3 

Table 18-C: Reforms in property Taxes .........................................................................................................18-4 

Table 18-D: Accounting Reforms...................................................................................................................18-6 

Table 18-E: Areas of Privatization/outsourcing.............................................................................................18-9 

Table 18-F: E-Governance status..................................................................................................................18-11 

Table 18-G: Reforms in Physical Infrastructure ..........................................................................................18-12 

Table 18-H: Revenue from Social Assets.....................................................................................................18-16 

Table 19-A : Key assumptions for forecasting income from Property Taxes..............................................19-6 

Table 19-B: Key assumptions for forecasting income from Water Charges................................................19-6 

Table 19-C : Key assumptions for forecasting income from Sewerage Charges.........................................19-7 

Table 19-D : Assumption for Income .............................................................................................................19-8 

Table 19-E: Assumption for Revenue Expenditure .....................................................................................19-10 

Table 19-F: Key assumptions for forecasting future debt obligations........................................................19-10 

Table 19-G : Financing Pattern for Proposed projects.................................................................................19-11 

Table No 19 I: Full Projects Cash Flow, WITHOUT REFORMS - As per Prudent Financial norms 

Table No 19 J.: Financial Operating Plan- With FULL PROJECT WITHOUT REFORMS- As per Prudent 

Financial Norms 

Table No 19 K: Calculation of Net Surplus after meeting the O&M on account of New Projects- Full 

project WITHOUT Reforms 

Table No 19 L: Full Project Cash Flow, With FULL PROJECT WITH REFORMS - Prudent Financial 

Norms 

Table No 19 M: Financial Operating Plan - With FULL PROJECT WITH REFORMS - As per Prudent 


Table No 19 N: Calculation of Net Surplus after meeting the O&M on account of New Projects- Full 

project WITH Reforms 

Table No 19 O: Calculation of Debt Service Coverage Ratio (DSCR) With FULL PROJECT WITH 

REFORMS - As per Prudent Financial Norms 

Table No 19 P: Full Project Scenario with FULL PROJECT WITH REFORMS with additional external 

support 

Table No 19 Q: Financial Operating Plan with FULL PROJECT WITH REFORMS with additional 

external support 

Table No 19 R: Calculation of Debt Service Coverage Ratio (DSCR) With FULL PROJECT WITH 

REFORMS with additional external support

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Table 19 S: Funding requirements as per Prudent Funding Norms vs. Funding Possibilities based on 

borrowing capacity – Full Project Scenario WITH Reforms 

Table 19 T Capital Investment Plan- Sustainable Scenario 

Table 19 U: List of projects not considered for Sustainable Scenario 

Table 19 V -Full Project Cash Flow of Identified New projects in Sustainable Scenario- Prudent Financial 

norms 

Table No.19 W: Financial Operating Plan - Sustainable Scenario - Prudent Financial Norms 

Table No 19 X: Calculation of Debt Service Coverage Ratio (DSCR) Sustainable Scenario- As per Prudent 


Table 19 Y - Full Project Cash Flow of Identified New projects in Sustainable Scenario- Additional 

External Support 

Table No.19 Z: Financial Operating Plan - Sustainable Scenario- Additional External Support 

Table No 19 AA: Calculation of Debt Service Coverage Ratio (DSCR) Sustainable Scenario- Additional 


Table 19 AB : Funding based on prudent financial norms Vs Funding possibility based on borrowing 

capacity – Sustainable Investment Scenario WITH Reforms 

Table 19AC: - Comparative statement for the full project scenario vis-à-vis sustainable scenario 

Table 19 AD: Funding pattern based on prudent financial norms for full project scenario and sustainable 

scenario 

Table AE: Funding possibilities for Identified Projects under Full Project Investment Scenario WITH 

Reforms and Sustainable Investment Scenario WITH Reforms 

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Figure 1-1: Approach and Methodology for City Corporate cum Business Plan .......................................... 1-3 

Figure 1-2 Rapid Urban Assessment ................................................................................................................ 1-5 

Figure 1-3 Presentation of the Inception report before the Review Committee ............................................ 1-5 

Figure 1-4 Strategic and Capital Investment Plan........................................................................................... 1-8 

Figure 1-5 Presentation of the Interim report before the Review Committee................................................ 1-8 

Figure 2-1 Regional Setting and Network linkages......................................................................................... 2-2 

Figure 5-1 Regional level Transportation network .......................................................................................... 5-9 

Figure 7-1 Slum locations in Dharapuram Municipal area ............................................................................. 7-1 

Figure 8-1 Income & Expenditure Account (Revenue Fund) ......................................................................... 8-2 

Figure 8-2: Break up of Income of Dharapuram Municipality for FY 2005-06............................................ 8-5 

Figure 8-3 Break up of Expenditure of Dharapuram Municipality for FY 2005-06 ..................................... 8-9 

Figure 8-4 : Source and Use of Funds of Dharapuram Municipality as on FY 2005-06.............................8-10 

Figure 8-5 : Income & Expenditure Account (Water Supply & Drainage Fund) ........................................8-11 

Figure 8-6 : Income & Expenditure Account (Elementary Education Fund) ..............................................8-13 

Figure 9-1 Organization chart of Dharapuram Municipality .......................................................................... 9-1 

Figure 11-1 Sector prioritization by the Stakeholders (Physical Infrastructure) .........................................11-8 

Figure 11-2 Sector prioritization by the Stakeholders (Social Infrastructure) .............................................11-9 

Figure 11-3 Sector prioritization by the Stakeholders (Environmental Issues) .........................................11-10 

Figure 11-4 Consultation with OWG members in Dharapuram .................................................................11-10 

Figure 11-5 OWG consultation for Report Finalisation ..............................................................................11-11 

Figure 15-1 Sector wise percentage share ......................................................................................................15-2 

Figure 15-2 : Site visit to existing wind mills around Dharapuram along with Chairman, Vice Chairman and 

Municipal Engineer..............................................................................................................................15-11 

Figure 19-1 Reforms Implementation Schedule 

Figure 19-2 Project Implementation Schedule

Annexure…………………………. 

ANNEXURE I POPULATION PROJECTION 

ANNEXURE II NORMS VS CURRENT STATUS 

ANNEXURE III URBAN PERFORMANCE INDICATORS 

ANNEXURE IV SALARIES 

ANNEXURE V VACANT LAND LIST 

ANNEXURE VI OWG ATTENDANCE 

ANNEXURE VII DRAFT MEMORANDUM OF UNDERSTANDING 

ANNEXURE VIII COUNCIL RESOLUTION 

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Acronyms…. 

AMP : Asset Management Plan 

ASI : Archeological Survey of India 

BPL : Below Poverty Line 

BOT : Build-Operate-Transfer 

BOOT : Build-Own-Operate-Transfer 

BOLT : Build-Own-Lease-Transfer 

BT : Bitumen Tar 

CAGR : Compounded Annual Growth Rate 

CC : Cement Concrete 

CIP : Capital investment Plan 

CCBP : City Corporate Cum Business Plan 

CMA : Commissionerate of Municipal Administration 

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CMWSSB : Chennai Metro Water Supply & Sewerage Board 

CPHEEO : Central Public Health & Environmental Engineering Organization 

DPR : Detailed Project Report 

ESR : Elevated Storage Reservoir 

ESA : Environmental and Social Assessment 

FAS : Financial Accounting System 

FOB : Foot Over Bridge 

FOP : Financial Operating Plan 

FY : Financial Year 

GIS : Geographical Information System 

Govt. : Government 

G.O : Government Order 

GSR : Ground Level Reservoir 

HH : House hold 

HP : Horse Power 

HSC : House Hold Connections 

HSS : Higher Secondary School 

HUDCO : Housing and Urban Development Corporation 

IHSDP : Integrated Housing & Slum Development Program 

IDSMT : Integrated Development of small & Medium Towns 

IUDP : Integrated Urban Development Project 

Kg : Kilo Gram 

Km : Kilometer 

JNNURM : Jawaharlal Nehru National Urban Renewal Mission 

Sq.Km : Square Kilometer 

Lpcd : Litre per capita per day 

LL : Lakh Litre 

LIC : Life Insurance corporation of India 

OHT : Over Head Tanks 

m : Meter

m2 : Square Meter 

m3 : Cubic Meter 

MIS : Management Information System 

Mld : Million litres per day 

MOA : Memorandum of Association 

mm : Millimeter 

MUDF : Municipal Urban Development Funds 

MUDP : Madras Urban Development Project 

NA : Not Available/Not Applicable 

NGO : Non Government Organisation 

NH : National Highway 

NHAI : National Highway Authority of India 

O&M : Operations and Maintenance 

OWG : Operations Woking group 

PF : Public Fountains 

PPP : Public Private Participation 

PSP : Private Sector Participation 

PWD : Public Works Department 

ROB : Road Over Bridge 

Sq ft : Square Feet 

Sq Km : Square Kilometer 

SC/ST : Scheduled Castes/Schedule Tribes 

SHG : Self Help Group 

SH : State Highway 

SWD : Storm Water Drains 

SWM : Solid Waste Management 

TOR : Terms of Reference 

TNUDP : Tamil Nadu Urban Development Project 

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TNUIFSL : Tamil Nadu Urban Infrastructure Financial Services Limited 

TUFIDCO : 

Tamil Nadu Urban Finance & Infrastructure Development Corporation 

Limited 

TWAD : Tamil Nadu Water Supply & Drainage Board 

UDPFI : Urban Development Planning Formulation and Implementation 

UIDSSMT : 

Urban Infrastructure Development Scheme for Small & Medium 

Towns 

UGD : Under Ground Sewerage 

ULB : Urban Local Bodies 

UT : Union Territory 

WBM : Water Bound Macadam 

WFPR : Work Force Participation Rate 

WS : Water Supply 

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1 PROJECT PROJECT PROJECT BACKGROUND 

BACKGROUND 

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Government of Tamilnadu and The World Bank as a partner has been involved in Urban 

Reform program in Tamilnadu through Tamilnadu Urban Development Project – TNUDP- 

I, TNUDP-II, TNUDP-III (in progress). Government of Tamilnadu is now implementing 

TNUDP-III with focus on furthering the urban reforms initiated under TNUDP-II. 

As a financial intermediary, TNUIFSL under TNUDP-III intends to assist 

Sathyamangalam, Bhavani, Gobichettipalayam, Rasipuram, Komarapalayam, Idappadi, 

Attur, Dharapuram, Kulithalai, Manapparai and Thuraiyur municipality in strengthening 

and improving its financial position for effective capital investment management and 

urban service delivery. These towns are having a good potential for immediate 

implementation of such financial reforms for which it is essential to formulate a City 

Corporate Cum Business Plan. Moreover, these municipalities have on their own defined 

their vision and identified certain projects to be implemented, for which pre-feasibility 

studies are to be carried out and a sustainable investment plan has to be prepared. 

In this regard, the task of preparation of City Corporate cum Business Plan for the 

aforesaid ULBs was awarded to Darashaw and Company Private Limited. This final report 

pertains to the City Corporate cum Business Plan for Dharapuram Municipality. 

1.1 City Corporate Cum Business Plan 

City Corporate cum Business Plan (CCBP) is an innovative approach and strategy that 

represents both a vision for the city and for the ULB organization as well as mission 

statements on how to materialize the vision. City Corporate cum Business Plan is 

considered as an important tool for governing the City, through a participatory and 

consultative process. CCBP tends to bring a systematic approach in the planning process 

through Citizen’s Participation. This helps the ULBs to identify the issues with clear 

vision and convert them into an action programme for Long, Medium and Short- term 

periods. 

The process of CCBP has been initiated through identifying the basic issues/priorities and 

possible ways of achieving them through a consultative process. As a forward linking 

process, the stakeholders have made an attempt to assess the deficiency in the existing 

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system and identified an ideal vision for future development. The stakeholders’ priorities 

have been established through a detailed consultation process. Based on this, an 

appropriate strategy has been drafted, adhering to the preferred standards as suggested by 

the stakeholders. Detailed corporate plan based on the financial status of the ULB has been 

prepared for implementation. 

One of the major focuses of CCBP is its importance attached in the preparation of 15-year 

Capital Investment Plan for the ULB. This has been carried out based on the priorities 

identified by the stakeholders in the context of long-term development and identification 

of priority investments, which has been phased based on the ULB’s infrastructure 

requirements and investment priority of the OWG members. 

The final plan will be approved and passed by the Elected Representatives of the 

Municipal Council and later will be made available to the public. 

1.2 Approach and Methodology 

Evolving and conceptualizing a precise methodological framework is crucial as it guides 

the task of preparing the City Corporate cum Business Plan (CC & BP) in a phased and 

planned manner. The study methodology outlines the various stages and tasks carried out 

in the preparation of City Corporate cum Business Plan for Municipal Towns in Tamil 

Nadu. 

The whole exercise is divided into four stages, which are further subdivided into tasks and 

several sub-tasks or activities within them. Figure below shows the adopted study 

methodology and is followed by a brief description on each of the stages.

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Figure 1-1: Approach and Methodology for City Corporate cum Business Plan 

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1.2.1 Inception Stage 

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In the inception stage, both the Demand Assessment and the Rapid Urban Assessment 

for the municipal area was carried out. 

1.2.1.1 Demand Assessment 

RFP document specifies that the municipalities (allotted to Darashaw and Company 

Private Limited) have on their own defined their vision and identified certain projects 

to be implemented, for which pre-feasibility studies are to be carried out and a 

sustainable investment plan has to be prepared. 

Hence, this stage in essence assessed the demand for various projects proposed by the 

municipality and Investment Plan for such projects was reviewed. 

1.2.1.2 Rapid Urban Assessment 

Here, all the information collected by Secondary sources was analyzed to find out 

current development status at an urban area level. The Analysis included all the 

sectors mentioned below: 

• Urban Economic Development 

• Social assessment 

• Poverty reduction 

• Land use planning and Urban Management 

• Urban Infrastructure 

• Human resources and Institutional Issues 

• Financial management 

• Environmental Management 

• Social impact analysis

ANALYSING GROWTH DIRECTIONS 

Ecology & Resource 

Base 

Environmental 

Management 

Land use planning and 

Urban Management 

Infrastructure 

services 

Physical 

infrastructure 

Social 


Transportation 

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Figure 1-2 Rapid Urban Assessment 

Demand Assessment and Rapid Urban assessment was approved and accepted 

by the Review Committee on 07 th January 2008 . 

Figure 1-3 Presentation of the Inception report before the Review Committee 

The Suggestions given by the Review Committee during the meeting has been given 

as under. 

Sectoral 

Situation 

Assessment 

Status assessment 

Socio- economic 

base 

Urban Economic 

Development 

Social 

assessment 

Poverty & Social 

issues 

Housing 

Human resources 

& Institutional 

issues 

Financial 

Management 

Demand supply gaps Sector wise 

issues 

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1.2.1.3 Suggestions of the Review Committee on the 

Inception Report 

Our initial assessment and findings during the Inception stage was presented before 

the Review Committee meeting held on 07.01.2008. The Review Committee’s inputs 

and comments on the Inception Report are given as under: 

1. The consultants were requested to do stakeholder consultations to get 

demands from public for identifying infrastructure gaps. 

2. The consultants were requested to do a SWOT analysis for every Municipality 

and accordingly fix up their vision statements and potentials for 

improvements. 

3. Apart from the basic infrastructure the consultants were requested to assess 

the demand for the social infrastructure such as municipal schools, burial 

ground, slaughter house etc. 

4. The consultants had identified projects implemented by municipality. It was 

also requested that the consultants should identify infrastructure requirements 

for total up liftment of the towns and accordingly classify under projects 

implemented by other departments. 

5. All the municipalities were requested to provide five years audited accounts 

and recent year’s un-audited accounts to the consultants. Accordingly the 

consultant was request to work out the financials.3 

6. Integrated approach on plans may be considered by the consultants for all the 

possible services 

The consultants have considered all the important suggestions suggested by the 

Review Committee and included them in the Interim Report to the maximum extent.

1.2.2 Interim Stage 

1.2.2.1 Strategic Plan 

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On the basis of the sectoral issues identified during rapid urban status assessment, the 

sectoral strategies were proposed and converted into Action plans and projects in 

liaison with the city vision developed by the municipality. Such projects have been 

phased on the basis of demand and OWG member’s priorities. 

During Strategic plan preparation; emphasis were given to Areas/ sectors for local 

Economic Development and poverty reduction. 

1.2.2.2 Capital Investment plan 

The Consultant have worked out the cost of projects and financial requirements for 

meeting the demand for infrastructure and services. Urban agglomeration have been 

considered while working out the project costing for identified projects. 

1.2.2.3 Asset Management plan 

Consultant has carried out the O&M costs for the services proposed and at the same 

time analyzed the impact on finances for existing and proposed Infrastructure projects. 

A detailed Asset Management Plan have also been prepared for the municipality 

1.2.2.4 Risk Analysis 

Consultant has carryout the risk analysis for the projects proposed by ULBs as well as 

for the projects identified in this assignment. 

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Emphasis for Economic Development and Poverty reduction 

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Ecology & 

Resource Base 

Environmental 

Management 

strategy 

Land use planning 

and Urban 

Management 

strategy 


services 

Physical 


strategy 

Social 


strategy 


strategy 


Figure 1-4 Strategic and Capital Investment Plan 

All the aforesaid four tasks were covered in the Interim Stage report which was 

approved and accepted by the Review Committee in its two day meeting held on 

18 th and 19 th March 2008. 

Strategic Plan 

Projects & Phasing 

Capital Investment 

plan 

Socio- economic 

base 

Social development 

Strategy 

Economic 

development 

Strategy 

Slums & Urban 

poverty Reduction 

strategy 

Housing Strategy 

Strategies for 

Strengthening 

Urban Governance 

Municipal, Finance 

Strategy 

Figure 1-5 Presentation of the Interim report before the Review Committee

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1.2.2.5 Suggestions of the Review Committee on the 

Interim Report 

The Review Committee during the aforesaid Interim meeting made some specific 

suggestions pertaining to Dharapuram Municipality to be addressed in the Draft Final 

Stage and the same is listed out below: 

1. The consultants were requested to prioritize the projects based on the demand 

for the project & demand from the stake holders and also have to consider the 

state policy and the financial capacity of the local body 

2. The consultants had mentioned in the report that the OWG will be formed, 

which will work towards identifying the issues, developing the strategies and 

finalize the capital investment plans. But it was found that stakeholder 

consultation was treated as OWG. Hence the consultants were requested to 

form the OWG and continuously interact with them towards effective 

completion of the assignment 

3. It was mentioned that the most of the projects identified were proposed under 

UIDSSMT. The consultants were requested to consider allocation to the state 

and to the local body for all the schemes and were requested to work out the 

project financials accordingly 

4. In solid waste management sector the consultant has given provisions only for 

collection system and compost yard. However they were requested to make a 

provision for scientific sanitary landfill facility for all towns 

5. The consultant has proposed some of the remunerative projects in second and 

third phase. However if there is a demand for such remunerative projects, this 

may be implemented in the first phase as this may act as an additional source 

of income for the local bodies 

6. Wherever tourism potential is huge, the consultants can identify some of the 

tourism project which may also be implemented by tourism / other 

departments 

7. The consultant has to consider O&M for Underground sewerage system only 

after completion of the scheme 

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The consultants have taken into consideration all the important suggestions suggested 

by the Review Committee and have included them in the Draft Final Report to the 

maximum extent. 

1.2.3 Draft Final stage 

1.2.3.1 Financial Operating Plan (FOP) 

The Financial Operating Plan (FOP) assesses the financial strength of the municipality 

to implement the identified investments. The Financial Operating Plan (FOP) 

forecasts the municipal finances on the basis of certain assumptions on income and 

expenditure. The primary objective of the FOP is to ascertain the investment 

sustenance capacity of the municipality under different scenarios of revenue 

enhancement and expenditure control. 

The projected FOP under four broad scenarios have been worked out to highlight the 

importance of the reforms suggested to implement all identified projects required for 

the development of Dharapuram Town. 

The four broad scenarios under which FOP has been worked out for Dharapuram 

municipality are as under: 

1. Base case scenario (“Business as usual scenario”) - In this scenario “No New 

Projects” are to be implemented over the 15 year period and No reforms to be 

undertaken. 

2. Full Project Scenario without undertaking the Suggested Reforms 

3. Full Project Scenario with Full Reforms implementation 

4. Sustainable Investment Scenario 

1.2.3.2 Draft Memorandum of Association 

Consultant have prepared a draft Memorandum of Association between ULB and 

TNUIFSL. The draft MoA has also outlined the Identified projects with 

implementation schedule, Reform Agenda which needs to be carried out and suitable 

action plan for the same.

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1.2.3.3 Suggestions of the Review Committee on the Draft 

Final Report 

The Review Committee during the aforesaid meeting, made some specific suggestions 

pertaining to Dharapuram Municipality to be addressed in the Addendum for the Draft 

Final Report and the same is listed out below: 

1. The consultant informed that none of the municipalities had the capacity to 

implement all the identified projects even with the reforms proposed. In this 

regard, consultants were requested to analyze the sustainable investment 

capacity of the local body and suggest the projects that can be taken with in 

the investment capacity and also to suggest alternative ways to implement the 

balance identified projects. 

2. The consultants were requested to analyze the impact of the reforms 

suggested on the financials of the local body and also to conduct the 

sensitivity for the same 

3. The consultant has suggested various reforms to be reached after certain 

period by the local bodies. However the consultants were asked to give the 

milestones for implementing the reforms, for intermittent period also. 

4. The consultants were requested to propose the Under Ground Sewerage 

Scheme based on the priorities already laid down by the Commissionarate of 

Municipal Administration, for which TNUIFSL will facilitate in obtaining the 

same. 

5. The consultants were requested to incorporate the provision for scientific 

sanitary landfill facility for all the local bodies 

6. The consultants were requested to work out year on year DSCR, average 

DSCR, minimum and maximum DSCR. 

7. The consultants were requested to include the existing loan while calculating 

DSCR 

8. The cost of the Underground Sewerage Scheme for Rasipuram, 

Gobichettipalayam, Sathyamangalam and Komarapalayam has increased, 

hence the consultants were requested to update the same and work-out the 

financials accordingly 

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Final 1.2.3.4 Addendum to the Draft Final Report 

Report 

Based on the comments received on the Draft Final Report, an addendum to the Draft 

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9. In Bhavani Municipality, the Commissioner pointed out that there is a slight 

difference in the assets given in the report and hence the consultants were 

requested to update the list of assets from the local body. 

10. In addition to the projects proposed in Bhavani, the Commissioner requested 

the consultants to incorporate the construction of compound wall in the head 

works and improvements to certain parks in the municipality. 

11. In addition to the projects proposed in Rasipuram, the Municipal Engineer 

requested the consultants to incorporate the construction of shops at the first 

floor and a shopping complex at Anna Nagar, which will fetch additional 

revenue to the local body. 

12. While converting Kulithalai from Panchayat to Municipality most of the 

assets were not transferred. Although these assets are within the municipal 

limits, these are owned by the Panchayat. As the development of the 

Kulithalai town vests partly with the Panchayat, the consultants were 

requested to consult the officials and the elected representatives of the 

Panchayat before finalizing the plan. 

Final Report was prepared and the same was approved by the Review Committee. The 

Review Committee made some suggestions to be incorporated in the Final Report and 

the same is listed below: 

The following are the salient points discussed. 

1. The consultants were requested to incorporate the additional projects in 

consultation with the local body. 

2. The consultants were requested to discuss the reforms suggested with the 

Council. 

3. The consultants were requested to prepare a comparative statement for the full 

project scenario vis-à-vis sustainable scenario. 

4. The consultants were requested to address the requirement of Wind Mills for 

Dharapuram Municipality.

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5. In some of the towns the consultants has decreased the ULB contribution in 

the scenarios after implementing reforms, which may be addressed. 

6. The Consultants were requested to provide justification for projects altered for 

the sustainable investment scenario. 

7. The Consultants were requested to high light the requirement of Common 

Effluent Treatment Plant for Komarapalayam Municipality in consultation 

with the Local Body. 

The Draft Final Report was approved by the Review Meeting held on 16 th and 

17 th September 2008. 

1.2.4 Final Report 

The final stage is the preparation of final report covering all the above stages 

incorporating the suggestions and modifications given by the Review Committee & 

also the OWG members in the meeting held on 24 th December 2008. 

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2 TOWN TOWN PROFILE 

PROFILE 

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Dharapuram Town is situated along the bank of River Amaravathi with a population 

of 64984 as per 2001 census, located in between 10 degree 45 minutes Northern 

latitude and 77 degree 31 minutes Eastern latitude with an extent of 7.02 Sq.km. 

Dharapuram Municipality is promoted as 1st grade municipality on May 6, 1983. It is 

a small agricultural marketing centre for a large rural hinterland in the Erode District. 

The town is at a distance of 80 Km from District Head Quarter Erode and at a distance 

of 82 Km from the industrial town Coimbatore. 

2.1 Regional setting and network linkages 

There are two state highway roads passing through this town, one is Erode- 

Ottanchattram road and other one is Pollachi-Dharapuram-Karur road. Further, the 

major district roads namely Coimbatore - Alangiyam road and Pollachi –Dindigal- 

Karur road also passes through Dharapuram town. Dharapuram town does not have 

any railway facilities. The Railway Stations located nearby to this town are Palani and 

Tiruppur located at a distance of 34km and 50km respectively. The nearest airport is 

located at Coimbatore which is 80 km from the town. 

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Figure 2-1 Regional Setting and Network linkages

2.2 Demography 

The population of this 

town as per 2001 

census is 64984, 

having male 

population of 31998 

and female population 

of 32986. The 

population growth and 

decadal variation 

since the year 1941 is 

shown in Table 2-A. 

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The gross population density of Dharapuram is around 2364 persons per Square 

Kilometer. The town registered a relatively high growth rate of 34.29 percent between 

1991 and 2001 in comparison with 9.63 percent growth rate registered between 1951 

and 1961. Ward wise population of Dharapuram is shown in Table 2-B. 

Table 2-B Ward wise population details 

Ward 

No 

Female Male Total Total 

SC 

Ward 

No 

Female Male Total Total 

SC 

1 1731 1893 3624 3495 16 396 433 829 - 

2 1157 1171 2328 205 17 1010 1005 2015 37 

3 933 932 1865 1285 18 1589 1382 2971 1045 

4 1082 1044 2126 1355 19 939 786 1725 - 

5 794 799 1593 95 20 1200 1168 2368 506 

6 880 897 1777 - 21 955 961 1916 27 

7 918 888 1806 24 22 1419 1479 2898 49 

8 795 768 1563 - 23 638 588 1226 - 

9 906 1053 1959 445 24 1368 1197 2565 19 

10 1006 967 1973 1005 25 1376 1406 2782 - 

11 735 539 1274 182 26 2831 2716 5547 93 

12 976 983 1959 139 27 1570 1199 2769 29 

13 749 734 1483 62 28 1169 1189 2358 63 

14 626 648 1274 - 29 952 961 1913 316 

15 885 877 1762 - 30 1401 1335 2736 515 

Source : Dharapuram municipality 

Table 2-A Population growth of Dharapuram 

Year Population Increment 

% of 

Variation CAGR 

1941 20660 

1951 24163 3503 16.96 1.58 

1961 26490 2327 9.63 0.92 

1971 34500 8010 30.24 2.68 

1981 42228 7728 22.40 2.04 

1991 48392 6164 14.60 1.37 

2001 64984 16592 34.29 2.99 

Average Growth rate 

Source : Census publications 

2.27 

Total 32986 31998 64984 10991 

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Report 

Gender ratio in 

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2.3 Social characteristics 

2.3.1 Social composition 

As per census 2001, 

SC population is 

about 15 percent of 

the total population 

whereas ST 

population is 

insignificant which 

comes around 0.79 

percent of the total 

population as shown in Table 2-C. 

Dharapuram is 

1031 females 

per 1000 males 

as per census 

2001. Gender 

ratio of 

Dharapuram is 

on the higher 

side compared 

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to Erode district urban as well as Tamilnadu urban as shown in Table 2-D. But the 

gender ratio among ST population is slightly low in Dharapuram, but better than 

Erode district Urban. 

Social 

Composition 

Table 2-C Social Composition 

Male Female Total 

% 

share to 

total 

SC Population 4903 5209 10112 15.56 

ST Population 262 249 511 0.79 

Others 26833 27528 54361 83.65 

Total Population 31998 32986 64984 100.00 

Source: Census 2001 

Table 2-D Gender ratio 

Gender ratio Population Population 

below 06 

SC ST 

Male 31998 2898 4903 262 

Female 32986 3233 5209 249 

Gender ratio in 

Dharapuram 

1031 1116 1062 950 

In Erode Urban 

district 

977 948 990 892 

In Tamilnadu Urban 982 955 1001 997 

Source : Census publications

2.3.3 Literacy levels 

As per census 2001, 

83.39 percent of total 

population (excluding 

0-6 years of age) are 

literates of which 

male accounted for 

89.3 percent and 

female accounted for 

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77.6 percent. Literacy levels in Dharapuram and its comparison with state urban and 

district urban figures are shown in Table 2-E. 

2.4 Physical characteristics 

2.4.1 Geology and soil type 

The soil is generally red loam soil and some places have sandy loam soil. Red loam 

soil is found in Dharapuram town area and sandy loam soil is found in Amaravathi 

river bed. Both these are suitable to Agriculture. 

Table 2-E Literacy levels 

Literacy levels Total Male Female 

Dharapuram town 83.39 89.30 77.60 

Erode Urban district 73.86 82.39 65.16 

Tamilnadu urban 

Source : Census publications 

82.53 88.97 75.99 

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3 PHYSICAL PHYSICAL PLANNING PLANNING AN AND AN D GROWTH 

GROWTH 

MANAGEMENT 

MANAGEMENT 

Dharapuram is situated on west side of the river Amaravathi. Dharapuram Town has a 

corporate area of 7.02 Sq.kms and getting developed on the north direction along 

Dharapuram - Coimbatore Road, South Direction along Dharapuram Alani Road and 

west along Pollachi Road. 

Under Town and Country Planning Act 1971, the responsibility of preparing and 

executing the Master plan for a Local Planning Area vests with the Local Planning 

Authority. Accordingly, Dharapuram Local planning area was notified under section 

10(1) in G.O.Ms No 2030 dated September 1973 and confirmed by Government under 

section 10 (4) of the act in G.O.Ms. No.652 RD& LA department dated 16.3.1974 and 

confirmed by Government under section 11(1) of the said act in G.O.Ms.no 651 RD& 

LA Department dated 1975. Master plan was prepared and approved by the 

Government under the section 28 of Tamilnadu town and country planning Act 1971 in 

G.O.Ms. No.230 H&UD department dated 19.2.1991 and published in Tamilnadu 

Government Gazette. 

On examining the proposed land use plan sanctioned during 1991 with the latest 2001 

existing land use plan, some discrepancies were observed. Accordingly, the modified 

master plan for the year 2021 was prepared based on land use surveys conducted during 

May 2001. 

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Commercial 20 5.25 2.85 32 8.31 4.56 

Final Industrial 

Report 

Public / semi public 

35 

33 

9.19 

8.66 

4.99 

4.70 

21 

25 

5.45 

6.49 

2.99 

3.56 

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3.1 Land Use 

Land Use Plan approved in the year 1991 was checked with the Land Use surveyed by 

Regional Directorate of Town and Country Planning, Salem in the year 2001. 

Residential land use proposed for 2001 in 1991 was more or less achieved whereas 

remaining Land uses like Commercial, Industrial, Educational, Public and Semi 

Public spaces haven’t achieved as notified in the proposed plan. Land Use details 

proposed in 1991 approved plan and achieved in 2001 are shown in Table 3-A. 

Land Use 

Table 3-A Land Use proposed and achieved 

Land Use Proposed for 2001 Land Use existing in 2003 

Area 

in Ha 

% to 

developed 

area 

% to the 

total area 

Area 

in Ha 

% to 

developed 

area 

% to 

the 

total 

area 

Residential 268 70.34 38.18 274 71.17 39.03 

Educational 25 6.56 3.56 33 8.57 4.70 

Developed area 381 100.00 54.27 385 100.00 54.84 

Agriculture land NA 285 40.60 

Land under water NA 32 4.56 

Undeveloped area 321 45.73 317 45.16 

Total 702 100.00 702 100.00 

Source : Approved Master Plan 2001 and reviewed Master plan for the year 2021

3.2 Proposed land use for 2021 

Land Use 

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In the reviewed Master plan for the year 2021, it has been proposed to retain all the 

land under water as it is. Wet and Dry lands to an extent of 221 hectares have been 

taken for future development. The extent of 221 hectares has been distributed spatially 

among the following five categories namely Residential, Commercial, Industrial, 

Public and Semi Public and for Educational purposes. Proposed land use for the year 

2021 is given in Table 3-B. 

Area 

required 

for 2011 

Table 3-B Proposed Land Use for the year 2021 

% to 

developed 

area 

% to 

total area 

Existing 

area 

(2001) 

Area in Hectares 

Additional area 

required in 2011 

Residential 363.6 60.00 51.79 274 89.6 

Commercial 60.6 10.00 8.63 32 28.6 

Industrial 30.3 5.00 4.32 21 9.3 

Public & 

Semi Public 42.42 7.00 6.04 25 17.42 

Educational 36.36 6.00 5.18 33 3.36 

Road 72.72 12.00 10.36 

Urbanisable 

area 606 100.00 86.32 385 221 

Land Under 

water 32 4.56 32 0 

Agriculture 

land 64 9.12 285 0 

Non 

urbanisable 96 13.68 317 0 

Total area 702 100.00 702 0 

Source: data compiled from Reviewed Dharapuram Master plan for the year 2021. 

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4 ECONOMIC ECONOMIC DEVELOPMENT 

DEVELOPMENT 

4.1 Economic base of the town 

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The town depends completely on the agricultural activities, Commerce and Trade. 

According to 2001 Census, Primary and Tertiary sectors are the major components of 

the working population accounting for 21% and 66% respectively. Major work force 

in Primary sector indicates that the town is more of a rural character and agriculture 

continues to be an important economic activity in the town. There are no big 

industries except one spinning mill. 

4.1.1 Occupational pattern 

Work force in Tertiary sector has increased from 24 percent to 29 percent of the total 

population whereas work force in primary and secondary sector has reduced slightly 

between 1981 and 2001. There is a sharp increase in Marginal workforce share to total 

population during the same period as shown in Table 4-A. 

Workers in 1981 

Table 4-A Occupational pattern in Dharapuram (1981-1991) 

% to 

total 

workers 

% to total 

population 

2001 

% to 

total 

workers 

% to total 

population 

Primary sector 3919 25.68 9.28 6036 21.07 9.27 

Secondary sector 565 3.70 1.34 814 2.84 1.25 

Tertiary sector 10083 66.08 23.88 18695 65.26 28.70 

Marginal workers 692 4.54 1.64 3103 10.83 4.76 

Total 15259 100.00 36.13 28648 100.00 43.98 

Non workers 26969 176.7416 63.87 36489 56.02 

Total population 42228 100.00 65137 100.00 

Source: data compiled from Dharapuram approved Master Plan for the year 2001and census 

publications 2001. 

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4.2 Industries in Dharapuram 

There are no big 

industries except one 

spinning mill in 

Dharapuram. Some of 

the Industries and its 

type in Dharapuram 

are shown in Table 

4-B. 

4.3 Tourism potential 

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Sri Kadu Hanumantharaya Swamy Temple is located at Dharapuram Town which is 

located at 32 kms from Palani. It is believed that this temple is one of the nine 

important sacred shrines for the Madhwa community. There are other temples, 

Mosques and churches located within Dharapuram, and the details of the same are 

given in Table 4-C. 

Table 4-B Industries and its type in Dharapuram 

Industry type No 

Rice mill 16 

Decorticator 3 

Banian 3 

Rotary 3 

Wet rice grinder 4 

Lathe works 2 

Printing press 1 

Flour mill 7 

Ice factory 3 

Saw mill 11 

Bag manufacturing 1 

Total 57 

Source : Reviewed Dharapuram Master plan as on 

July 2003

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Table 4-C Religious spots in Dharapuram 

W No Temples/church/mosque W No Temples/church/mosque 

1 

Vinayagar Kovil, Kaliamman Kovil 

Pallivasal (Dharga) 

14 

Vinayagar Kovil 

Sowndamman Kovil 

2 Kaliamman Kovil 15 Mosque (Big Bazzaar street) 

3 

Roman Catholic Church 

Kaliamman Kovil 

16 


KristhuvaAnuppar Street 

Bairavar Kovil 

5 Mosque 18 Mariyamman kovil 

6 Mosque 19 

7 

8 

9 

10 

11 

Pandurangan Kovil 

Mariamman Kovil 

Sulthaniya Pallivasal 

(Cloth Bazazar Street) 

Ayyappan Kovil 

Bala Dhandayuthapani Murugan Kovil 

Perumal Kovil 

Krishnan Kovil 

DhakshinaMoorthy Kovil 

AMC Pallivasal 

Chokkanathar Alayam 


Murugan Kovil 

Vinayagar Kovil 

22 

Subramania swami Kovil 

Durgai Amman Kovil 

Chinnakaliyamman Kkovil 

R.C.Church 

Vinayakar Kovil 

Chinnakaliyamman Kovil 

Periyakaliyamman Kovil 

23 Amman Kovil 

27 Vinayakar Kovil 

28 Kaliyamman Kovil 

29 

Krishnan Kovil 

Vinayakar Kovil 

12 Kaliamman Kovil 30 Vinayakar Kovil 

13 Pallivasal (Kottaimedu) 

Source : Reviewed Dharapuram Master plan as on July 2003 

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5 PHYSICAL PHYSICAL INFRASTRUCT 

INFRASTRUCTURE 

INFRASTRUCT URE 

Infrastructure facilities play an important role in fostering economic growth and 

enhancing public welfare. By and large, the infrastructure may be divided into two 

categories: 

(a) Physical infrastructure including Water supply, Drainage, Sewerage, Solid Waste 

Management, Electricity, Telecommunications and so forth; and 

(b) Socio-economic infrastructure including Education, Health, other Community 

facilities, Cold storages, Warehouses, Markets, Banks and Financial Institutions. 

This chapter deals with Physical Infrastructure which includes Water Supply, 

Sewerage and Sanitation, Storm water drainage, Solid Waste Management Roads and 

Street Lighting. 

5.1 Water supply 

5.1.1 Water supply Scheme 

Dharapuram Municipality supplies drinking water from Amaravathi River as well as 

from Cauvery River. It also supplies water from bore wells for non drinking purposes. 

Amaravathi scheme was implemented in the year 1964 and the Cauvery scheme was 

implemented in the year 2005. 

5.1.2 Water supply system 

Municipal water supply is provided for all the 30 wards. The wards numbers 1, 2, 3, 4, 

12, 26, 27, 28, 29 and 30 (10 wards) are supplied with Amaravathi water. Cauvery 

water is supplied in the wards 5, 6, 9, 10, 11, 24 and 25 (7 wards). Remaining wards 

7,8, 13,14,15,16,17,18,19,20,21,22,23 (13 wards) are given both Cauveri and 

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Amaravathi water. The details of water supply system in Dharapuram are given in the 

Table 5-A. 

Table 5-A Water supply system in Dharapuram 

Description Details 

Source of Water Supply 

Amaravathi river+ Cauvery river+ 

Bore wells 

Water Supply Agency TWAD+Municipality 

Description regarding Quantity ( Normal 

months) 

Amaravathy Scheme 4.71 MLD 

Cauvery Scheme 0.62 MLD 

Municipality sources 1.43 MLD 

Total Water supplied 6.76 MLD 

Description regarding Quantity ( Summer 

months) 

Amaravathy Scheme 0.5 MLD 

Cauvery Scheme 2.5 MLD 

Municipality sources 1 MLD 

Total Water supplied 4 MLD 

Description regarding Storage 

No of OHTs 10 

Total storage capacity 32.18 

Description regarding Connections 

Domestic 6531 

Non Domestic 226 

Total connections 6757 

No of Stand posts 129 

No of power pumps 98 

No of Hand Pumps 108 

Pumping main 6.92 km 

Distribution main 49.02 

Source: Data collected from Dharapuram Municipality

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There are 3 OHTs located in ward number 2 and 8 and the total capacity is 24 lakh 

litres. The Municipality also has 8 Nos of Mini tanks of 12,000 litres capacity 

altogether. The details of various OHTs and Mini tanks are given in the Table 5-B. 

Table 5-B: Details of OHT 

S No Location Scheme 

Capacity 

( in lakh Litre) 

1 Old bus Stand Amaravathi 10 

2 Old bus Stand Amaravathi 5.68 

3 Anna Nagar Amaravathi 2.5 

4 Poolavadi Road Amaravathi 1 

5 Upputhuraipalayam Amaravathi 1 

6 Old Housing Unit Amaravathi 1 

7 Muslim street Cauvery 3 

8 TNHB Colony (new) Cauvery 3 

9 Kanann Nagar Cauvery 3 

10 Santhapettai 

( weekly market) 

Cauvery 2 

Total 32.18 

Source : Data computed based on the data collected from Dharapuram Municipality 

5.1.3 Water Availability 

Dharapuram Municipality is suffering water scarcity every year since the Amaravathi 

river gets dry in summer (6 to 8 months). So it depends mostly on Cauveri water as 

well as Municipality bore well water supply during dry season. Water is supplied once 

in 3 days for 2 hours. The water table is at a depth of 100 feet in Dharapuram. It goes 

to 600 to 900 feet in summer. 

5.1.1.1 Rain water harvesting 

The Municipality has provided rain water harvesting structures in various places of 

the town to improve the ground water level. The following rain water harvesting 

works have been provided as shown in Table 5-C. 

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Category 

Table 5-C: Rainwater harvesting details 

Total No. 

of Buildings 


No. of Buildings 

covered 

Balance No. 

of Buildings 

Municipal Building 85 85 0 

Private Houses 11264 11264 0 

Commercial Buildings 874 874 0 

Private Institutions 31 31 0 

Source : http://municipality.tn.gov.in/dharapuram 

5.1.4 Service adequacy 

Table 5-D: Performance Indicators 

S.No Indicators Unit 

Current 

Status 

Norms/Standard 

1 Daily per capita supply Litres 57 135 

2 

Roads covered with distribution 

network 

Percent 84 > 100 

3 

Storage capacity with respect to 

supply 

Percent 80.45 33 

5 

Assessments covered by service 

connections 


6 Slum population per stand post Persons 142 150 


5.2 Sewerage and Sanitation 

Sewage is mostly the waste water of the community draining into the sewer system 

with some ground water infiltration. Generally 80 percent of the water supplied gets 

drained into the sewerage system.

5.2.1 Sewerage system in Dharapuram 

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There is no Underground sewerage system in Dharapuram. The sewerage is disposed 

in Amaravathi River. The DPR for Underground sewerage system for Dharapuram is 

under preparation by TWAD. 

5.2.2 Sanitation facilities in Dharapuram 

In Dharapuram, nearly 716 

assessments out of 13623 (5.3 

percent coverage) total 

assessments are having individual 

private sanitation facilities with 

septic tank as a major mode of 

sewage disposal. In addition, 

Dharapuram has 45 public 

convenience units in the town out 

of which 6 are Pay and Use units. The details of Public conveniences in Dharapuram 

are given in Table 5-E. 

5.3 Storm Water Drainage 

All storm water drains in Dharapuram are open in nature. In Dharapuram total 4.36 

Sq.Km is covered by Storm water drainage whereas nearly 13.12 Sq.Km is uncovered. 

Regarding coverage, only 23 percent of the roads are covered by Storm water drains 

against the standard norm of minimum 130 percent. Ward wise length of storm water 

drainage in Dharapuram is given in Table 5-F. 

Table 5-E: Public convenience in 

Dharapuram 

Toilet type No seats 

ISP 4 40 

Pay & Use 6 57 

Vambay 12 110 

Free toilet 23 142 

Total 45 349 

Source : Dharapuram Municipality 

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Table 5-F: Storm water drainage in Dharapuram 

Ward No Drain length in M Ward No Drain length in M 

1 1482 16 191 

2 655 17 200 

3 507 18 617 

4 269 19 402 

5 163 20 429 

6 65 21 102 

7 503 22 183 

8 428 23 187 

9 395 24 182 

10 396 25 521 

11 241 26 1176 

12 754 27 216 

13 515 28 671 

14 318 29 245 

15 486 30 622 


5.4 Solid Waste Management 

Total 13121 

In Dharapuram, the Municipality maintains solid waste collection in 21 wards and the 

rest 9 wards are privatized in the year 2004. The collection, transportation and 

disposal of Municipal Solid Waste are an obligatory function of Dharapuram 

Municipality. The Public Health Department of the Municipality headed by 

Municipal Health Officer and a team of Sanitary Inspectors are responsible for the 

Solid Waste Management of the town. 

5.4.1 Generation and collection 

Dharapuram Town generates around 30 tonnes of Garbage per day at the rate of 430 

grams per capita per day. Dharapuram municipality collects waste from all 30 wards. 

Door to Door collection system has been adopted in all 30 wards. Waste segregation is 

not yet implemented in Dharapuram Municipality except for markets, marriage halls 

and hotels. Details of solid waste management in Dharapuram are given in Table 5-G.

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Table 5-G: Dharapuram solid waste management 

Description Details 

Estimated waste generation per day 30T 

Solid waste collection by Municipality 18T 

Solid waste collection by Private party 12 T 

Estimated Total Waste collection per day 30T 

Waste collection frequency Daily once 

Total umber of wards 30 

Number of wards covered under door to door collection 30 

No of wards covered under waste segregation 0 

No of Dust bins 60 Nos (1.5 Ton Capacity) 

Number of conservancy staff 106 


Solid waste composition of Dharapuram Municipality is given in Table 5-H. 

Maximum amount of waste is generated from Households, shops and establishments. 

Table 5-H: Dharapuram solid waste composition 

Category Waste Generated in Ton 

Households, shops and establishments 23.75 

Vegetable, Fruits, Flower markets 3.75 

Construction, demolition of buildings 2.25 

Hospitals 0.25 

Total 30 T 


5.4.2 Disposal and treatment 

The disposal site is located at Nanjyampalayam which is located within Dharapuram. 

It has an area of 10.18 Acres. Waste collected in the collection points are transported 

through Municipal vehicles and dumped at the disposal site. Dharapuram health 

department has the staff strength of 1 health officer, 4 sanitary inspectors, 7 sanitary 

supervisors, 101 sanitary workers and 5 drivers for keeping the town clean and green. 

As a part of secondary collection system, 3 numbers of Lorries and 2 covered dumper 

placers are in operation for solid waste and one sullage lorry for cleaning septic tanks. 

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Table 5-I Vehicle availability and trips performed for waste disposal 

Vehicles Nos Trips 

Vehicle 

capacity in ton 

Capacity 

after 0.4 

adjustment 

factor 

Total waste 

Collected by 

Municipality inTon 

Lorry 3 3 4 1.6 14.4 

Dumper placer 2 10 1 0.4 4 

Total 5 13 5 2 18.4 

Source : Health department, Dharapuram Municipality 

One third portion of the disposal site is used for making manure out of organic waste by 

windrows method. Rest two third of the area is allotted for land filling. Degradable waste is 

collected from market, hotels and marriage hall in separate lorry covered with net and taken to 

the compost yard for making manure. Other waste is collected in 2 Lorries and 2 tractors 

covered with net and disposed at the land fill site. Rag pickers are encouraged to pick up the 

recyclable waste at land filling area. 

5.4.3 Service Adequacy 

Table 5-J Performance Indicators 

Indicators Unit 

Current 

Status 

Normative 

Standard 

Waste generation per Capita per day Grams 430 350-450 

Collection efficiency Percent 100 100 

Conservancy staff per Km Persons 1.8 2 

% capacity of Fleet vehicles to waste generated Percent 18.7 

Source : computed based on the data collected from Dharapuram Municipality 

5.5 Traffic and Transportation 

Dharapuram is well connected with the district headquarters, Coimbatore, Erode, 

Karur, Dindigal and other urban centers like Tiruppur,Palani, Udumalpet and Pollachi 

with road transport facilities.

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There are two state highway roads, one is Erode-Ottanchathram road and other one is 

Pollachi-Dharapuram-Karur road. The Major District Roads like Coimbatore - 

Alangiyam road and Pollachi –Dindigal- Karur road connects Dharapuram town with 

other urban centres. Dharapuram town does not have any railway facilities. The 

nearest railway station is at Palani located at a distance of 34 Km. The nearest airport 

is located at Coimbatore which is 80 km from the Dharapuram town. 

DHARAPURAM 

Source : www.mapsofindia.com 

Figure 5-1 Regional level Transportation network 

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5.5.1 City level road network 

Town has total 58.2 

Km road length 

maintained by the 

Municipality. More 

than 90 percent of the 

roads are pucca roads. 

In addition; 7.80 Km 

Major District Roads 

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and 9.69 Km State Highway roads are also traversing through Dharapuram. 

Dharapuram also has one bridge and 19 nos of culverts. 

5.5.2 Transport system 

The main mode of mass transportation in and out of the town is buses operated by 

private companies and State Transport Corporation. All parts of the villages located 

around the town are well connected by town buses. 

5.5.3 Bus Stand infrastructure 

The bus stand at Dharapuram has an area of 3 acres. There are 24 Nos of bus bays. 

Around 372 buses are in operation from this Bus stand, making almost 2187 trips 

catering to nearly 38,000 passengers. 

5.5.4 Service adequacy 

Table 5-K City level road network in Dharapuram 

Road Length in Km 

CC road 17.37 

BT Road 38.56 

WBM Road 0.35 

Eaethen/Gravel Road 1.92 

Total 58.2 


Table 5-L Performance Indicators related to road 

Performance 

Indicators 

Unit 

Current 

status 

Road density Km/ Sq.Km 8.3 

Per capita road length Meters/Person 0.83 

Percentage of Surface 

roads 


Percent 

96.10

5.6 Street Lighting 

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There are 1962 Nos of tube lights, 135 Nos of sodium vapour lights, 39 nos of 

mercury vapour lights and 8 solar lights in Dharapuram. Ward wise street lighting 

details are given in Table 5-M. 

Table 5-M Ward wise street light details 

Ward Tube SV MV Ward Tube SV MV 

No light light light No light light light 

1 121 5 1 16 23 4 2 

2 61 2 1 17 25 1 1 

3 42 - 1 18 62 - 1 

4 62 2 1 19 62 19 3 

5 65 - - 20 71 11 2 

6 63 8 3 21 41 - - 

7 82 2 5 22 40 - - 

8 57 3 - 23 54 1 2 

9 93 3 3 24 52 - 1 

10 122 7 1 25 91 6 - 

11 62 6 1 26 199 15 - 

12 56 9 1 27 62 3 1 

13 46 3 - 28 46 3 - 

14 51 9 1 29 48 5 3 

15 27 7 3 30 76 1 1 


5.6.1 Service Adequacy 

Total 1962 135 39 

Table 5-N Performance Indicators regarding Street Lighting in Dharapuram 

Indicators Unit 

Current 

status 

Norms/Standards 

Spacing between lamps Meters 27 30 

Proportion of tube lights W.R.T to total Percent 92 60 

Proportion of high power fixtures W.R.T to 

total 


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5.7 Problems and issues 

Water Supply 

Sewerage 

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Sector Issues 

Storm water drainage 

Traffic and 


Solid Waste management 

Street lighting 


• Per Capita supply is low (57 lpcd during summer) 

• One of the two existing system is old (Amaravathi river 

water supply scheme 1964) 

• Nearly 2 Km existing distribution lines are dilapidated 

which needs replacement 

• Ellish Nagar is facing water shortage problem 

• No comprehensive sewerage system as on today 

• Six existing toilets are in worst damaged condition which 

needs maintenance 

• Absence of public conveniences in Kamarajapuram, 

Chithravuthan Palayam and Udurnalai Kottapalli palayam. 

• 23 percent of the roads are only covered by Storm water 

drains 

• Flood problem during rainy season 

• SWD works proposed under UIDSSMT is pending due to 

UGD works proposed 

• Widening major links like Erode-Ottanchathram road and 

Pollachi-Dharapuram-Karur road 

• Inadequate Bus parking space and infrastructure 

inadequacies 

• Traffic conflicts in Pollachi road, in Amaravathi bye-pass, in 

five corner junction and in Pookadai junction 

• 2 Km roads are kutcha roads 

• Household segregation of waste hasn’t been adopted in the 

town 

• Absence of energy saving street lighting mechanism

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6 SOCIO SOCIO-ECONOMIC 

SOCIO ECONOMIC INFRASTRUCTURE 

The Socio-economic infrastructure determines the development status of any human 

settlement and this chapter covers Health, Education, Recreation and other amenities. 

6.1 Health 

Dharapuram has 2 maternity hospitals located at Church road and Upputhurapalayam. 

Further, Dharapuram has one Ayurvedic dispensary located at Church road. In 

addition, 21 private clinics are also functioning within the municipality. 

6.2 Education 

Dharapuram has 3 elementary schools, 2 middle schools, one higher secondary school 

and 2 colleges located within the Municipal area. There is only one Government 

school in Dharapuram. The details of the educational institutions in Dharapuram are 

given in Table 6-A. 

Table 6-A List of Educational Institutions in Dharapuram 

Ward 

No. 

Name of the Educational 

Institution 

Type of the 

School 

Address 

Government/ 

Private 

9 Govt.Hr.Sec.School Hr.Secondary Cholakadai 

Street 

Govt. 

28 CSI Boys Hr.Sec.School Hr.Secondary Ellis Nagar Private 

26 CSI Girls Hr.Sec.School Hr.Secondary Udumalai Road Private 

27 NCP Municipal Hr.Sec. 

School 

Hr.Secondary Vasantha Road Municipal 

19 St.Aloycious Girls Hr.Sec. 

School 

Hr.Secondary Church Road Private 

27 Centwin Metriculation 

Hr.Sec.School 

Hr.Secondary Pollachi Road Private 

26 

Bishop Throp Art and 

Science College 

Co-Education 

Kottapuli 

palayam Road 

Private 

27 Bishop NursingCollege Women Vasantha Road Private 


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6.3 Other amenities 

Dharapuram has 3 cinema 

theatres and one park 

available for recreational 

activities. A daily vegetable 

market is situated in 

Udumalpet road in 

Dharapuram town. In this 

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market, 37 shops are given on monthly rental basis and 50 open stalls are operating on 

annual lease basis. The weekly market and wholesale vegetable market are situated in 

Cholakadai veedhi at the extent of 4 acres. The weekly market functions on every 

Tuesday. 

Dharapuram has 11 banks whose location and the details are given in Table 6-C. 

Table 6-C Details of Banks in Dharapuram 

Sl. No. Name of the Bank Address 

1 State Bank of India Udumalai Road 

2 Canara Bank Big Bazzar Street 

3 Punjab National Bank Vasantha Road 

4 ICICI Bank Big Bazzar Street 

5 Karur Vysya Bank Big Bazzar Street 

6 Co-operative Urban Bank Big Bazzar Street 

7 Erode Dist. Central Co-op Bank New Police Station Road 

8 Indian Overseas Bank Kolinjivadi 

9 Indian Overseas Bank Chinnakadai Street 

10 Central Bank of India Natchmuthu pudur (Amman complex) 

11 Indian Bank Vasantha Road 

Source : data computed based on the data collected from Dharapuram 

Municipality 

Table 6-B Details of Markets in Dharapuram 

Name of market No Area 

Weekly market 1 6.98 

Daily market 1 1.36 

Uzlavar Santhey 1 NA 

Source : Dharapuram Municipality

Details of Hotels in Dharapuram are given in Table 6-D. 

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Table 6-D Details of Banks in Dharapuram 

S No Name of Hotel Location 

1 Balaji Hotel Big Bazaar St 

2 Ariyas Hotel Church Road 

3 Bala Bhavan Five Corner 

4 Abirami Hotel Big Bazaar St 

5 Kumaran Hotel Bus Stand 

6 Kasthuri Bhavan Opp to Bus Stand 

7 Ariyas Hotel Church Road 

8 Hotel Karthick Cholakkadai St 

9 Hotel Saravana Bhavan Big Bazaar St 

10 Om Saravana Bhavan Church Road 

11 Hotel Ravi Near Bus Stand 


Table 6-E Details of Marriage halls in Dharapuram 

Sl No Name of Marriage hall Location 

1 Gokul Kalyana Mandapam Kolinjiwadi 

2 Arul Jothi Asharamam Five Corner 

3 Namagiri Kalyana Mandapam Hanumanthapuram 

4 Ruckmani Kalyana Mandapam Park Road 

5 Varthaka Kalyana Mandapam Park Road 

6 Thatheyu Kalyana Mandapam Seetha Nagar 

7 Sri Ram Kalyana Mandapam Kaliamman Kovil St 

8 Viswanatha Mahal Kaliamman Kovil St 

9 Lakshmi Kalyana Mandapam Big Bazaar St 

10 Gandhi Kalyana Mandapam Pollachi Road 

11 Muthu Valliammai Kalyana Mandapam Kulathupunjai St 

12 Semalai Gounder Kalyana Mandapam Kulathupunjai St 

13 Pappammal Palanisamy Kalyana Mandapam Kulathupunjai St 

14 Lakshmi Kalyana Mandapam Bye-Pass Road 


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6.4 Problems and Issues 

Sector 

Socio-economic 


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Issues 

• Municipality has only one park developed 

• Town has no Gasifier crematorium 

• Daily market and weekly market have spaces undeveloped 

• Space constraints in Municipal Office building 

• Town has no community hall 

• 16 approved layouts are undeveloped as parks and 

playgrounds 

• NCP school has no water supply arrangements 

• Class room infrastructure inadequacy in four municipal 

schools

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7 SLUMS SLUMS AND AND URBAN URBAN POVE POVERTY 

POVE RTY 

As per Census of India, the slum areas are broadly defined as:- 

(i) All specified areas in a town or city notified as ‘Slum’ by State/Local Government 

and UT Administration under any Act including a ‘Slum Act’. 

(ii) All areas recognized as ‘Slum’ by State/Local Government and UT 

Administration, Housing and Slum Boards, which may have not been formally 

notified as slum under any act; 

(iii) A compact area of at least 300 persons or about 60-70 households of poorly built 

congested tenements, in unhygienic environment usually with inadequate 

infrastructure and lacking in proper sanitary and drinking water facilities. 

7.1 Slums in Dharapuram 

In Dharapuram, there are 14 slums in existence. Nearly 27 percent of the total 

population is living in slums. Slum locations in Dharapuram are shown in Figure 7-1. 

Figure 7-1 Slum locations in Dharapuram Municipal area 

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Table 7-A Details of Slums in Dharapuram 


Sl No Name of Slum Ward No Population 

1 Kamarajapuram 1 3821 

2 Roman Catholic Street 3 1866 

3 Kaman Kovil Street 4 1174 

4 Tiruppur Salai 4 969 

5 Kottaimedu Street ( Cholakkadai Veethi) 9 646 

6 Kolinjivadi Street 10 1052 

7 Chokkanathapalayam 11 1012 

8 Upputhuraipalayam 12 462 

9 Devendra Street 18 765 

10 Jawahar Nagar 20 2377 

11 Ambedkar Street 20 1247 

12 Gandhipuram ( Aladikalam Pathai) 24 701 

13 Kulathupunjai Street 28 847 

14 Nehru Nagar 30 1318 

Total 18257 


7.1.1 Service provision in slum areas 

As indicated in IHSDP detailed project report, the notified slums have been provided 

with facilities like Road, Drainage, Water Supply, Electricity, Toilet, and Shelter up 

gradation etc. to certain extent. Service adequacy in slum areas is shown in Table 7-B. 

Table 7-B Service adequacy in Slum areas 

Infrastructure Current status Unit 

Slum population 18257 Nos 

Water Supply 70 LPCD 

Road 16.197 Kms 

Community Toilet 15 Nos 

Street Lights 625 Nos 

Storm water Drains 4.524 Kms 

Per capita road length 0.89 Meters/Person 

Persons per public Toilet 1217 Pop/Public Toilet 

Spacing between lights 26 Meters 

% of roads covered by SWD 28 Percent 

Source : Data computed based on the data collected from Dharapuram Municipality

7.2 Urban poor in Dharapuram 

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BPL population revised in 2007 is 22417 which accounts for 35 percent of the total 

population. An attempt has been made to compare Ward wise population 2001 with 

ward wise BPL population revised in 2007. Wards 1 and 30 have BPL population 

more than 70 percent of the total ward population whereas wards 3, 10 and 29 have 

BPL share more than 50 percent of the total population as shown in Table 7-C. 

Table 7-C BPL population in Dharapuram 

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No 

Pop 

2001 

BPL 

Pop 2007 

% 

share 

Ward No 

Pop 

2001 

BPL 

Pop 2007 

% share 

P 

1 3624 3156 87.09 16 829 88 10.62 

2 2328 594 25.52 17 2015 696 34.54 

3 1865 1155 61.93 18 2971 899 30.26 I 

4 2126 1026 48.26 19 1725 212 12.29 

5 1593 658 41.31 20 2368 772 32.60 

6 1777 726 40.86 21 1916 564 29.44 

7 1806 639 35.38 22 2898 289 9.97 

8 1563 484 30.97 23 1226 521 42.50 

9 1959 752 38.39 24 2565 526 20.51 

10 

11 

1973 

1274 

1110 

617 

56.26 

48.43 

25 

26 

2782 

5547 

72 

832 

2.59 Final 

15.00 Report 

12 1959 869 44.36 27 2769 95 3.43 

13 1483 288 19.42 28 2358 898 38.08 7-3 

14 1274 493 38.70 29 1913 1019 53.27 

15 1762 392 22.25 30 2736 1975 72.19 

Total 64984 22417 34.50 

Source : data computed based on the data collected from Dharapuram Municipality 

7.3 Problems and Issues 

Sector 

Slums and Urban 

Poverty 

Issues 

• Large number of slum pockets (14) 

• 27 percent of the total population is living in slums 

• 35 percent of the total population are living below poverty line 

• Inadequate infrastructure facilities in slum areas 

• IHSDP proposed is yet to be implemented due to delay in 

approval and fund constraints. 

III

8 FINANC FINANCIAL FINANC IAL STATUS 

8.1 Overview 

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The Urban Local Bodies (ULB’s) in Tamil Nadu have adopted Accrual Based Accounting 

System in the last few years. Currently the ULB’s of Tamil Nadu maintain three separate 

fund namely a) Revenue and Capital Fund b) Water Supply and Drainage Fund and c) 

Elementary Education Fund. For each of these funds a Trial Balance, Income & 

Expenditure Account and Balance Sheet are maintained. 

The Sources of income for a municipality can be broadly categorized as own sources 

(Includes both Tax and Non Tax Revenues), and External Sources (Assigned Revenues, 

Devolution Funds, Grants and Contribution). Besides municipalities also can avail of 

loans/Grants/Contribution from Government(Central and State) and loans from various 

funding agencies such as TUFIDCO, TNUIFSL, HUDCO, LIC and Banks etc, for 

undertaking specific projects based on their credit worthiness. 

The municipality’s Revenue expenditure can be broadly categorized into Personnel cost 

and Terminal and Retirement benefits, Operating Expenses, Repairs & Maintenance 

Expenses, Programme Expenses Administrative Expenses, Finance Expense, Provision for 

Depreciation. Besides the above, significant amount would be required for undertaking up 

capital works. 

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8.2 Financials (Revenue Fund) 

Rs.in Lakhs 

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500.00 

400.00 

300.00 

200.00 

100.00 


Figure 8-1 Income & Expenditure Account (Revenue Fund) 

0.00 

Income & Expenditure Account ( Revenue Fund) 

2002-03 2003-04 2004-05 2005-06 

Year 

Source : Annual Accounts/Budget Estimates of Dharapuram Municipality 

TOTAL INCOME 

TOTAL 

EXPENDITURE 

Table 8-A Income & Expenditure Account ( Revenue and Capital Fund) 

Rs.in lakhs 

Particulars 2002-03 2003-04 2004-05 2005-06 

INCOME 

Property Tax 52.89 55.25 58.47 60.97 

Other Tax 10.33 11.42 14.59 15.15 

Assigned Revenue 72.40 52.77 51.71 36.36 

Devolution fund 109.04 134.82 111.20 182.46 

Service Charges and Fees 35.33 33.64 35.98 33.49 

Fees for Bus stand 17.51 18.25 N.A 18.89 

Building License Fees 2.86 2.85 N.A 2.25 

Other Fees 14.96 12.55 N.A 12.35 

Grants and Contribution 2.26 N.A N.A 3.36 

Sale & Hire Charges 0.00 0.00 0.00 0.00 

Other Income 59.25 70.13 57.41 71.82 

Daily Market Fees 4.59 5.31 N.A N.A 

Fees for Slaughter house 0.31 0.37 N.A 0.00 

Rent on Shopping Complex 30.60 32.24 N.A 27.42 

Project Overhead Appropriation 

Expenses 

6.86 15.40 N.A 23.59 

Others 16.89 16.81 N.A 20.81 

TOTAL INCOME 341.50 358.03 329.37 403.60

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Particulars 2002-03 2003-04 2004-05 2005-06 

EXPENDITURE 

Personnel Cost I (Salaries) 129.43 123.64 129.93 141.81 

Personnel Cost II (Others) 1.83 2.29 2.81 3.01 

Terminal and retirement benefits 51.14 36.39 22.62 36.24 

Operating Expenses 33.41 39.89 54.17 50.40 

Maintenance Expense for Street 

Lights 

4.73 6.76 N.A N.A 

Power Charges for Street Lights 13.49 16.10 N.A N.A 

Others 15.20 17.02 N.A N.A 

Repairs & Maintenance 6.74 5.89 6.29 7.97 

Heavy Vehicles 3.68 3.90 N.A N.A 

Others 3.06 1.99 N.A N.A 

Programme Expenses 0.16 0.51 0.03 4.13 

Administrative Expenses 14.06 11.98 13.68 16.60 

Finance Expenses 36.52 24.50 16.42 15.76 

Interest on loans/Ways and 

means advance 

35.17 23.72 N.A N.A 


Depreciation 80.28 82.40 74.80 78.54 

TOTAL EXPENDITURE 353.57 327.48 320.74 354.45 

NET DEFICIT/SURPLUS -12.07 30.55 8.63 49.14 

Source: Annual Accounts/Budget Estimates of Dharapuram Municipality 

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Table 8-B Balance Sheet ( Revenue and Capital Fund) 

Particulars 2002-03 2003-04 2005-06 

Rs.in lakhs 

LIABILITIES 

Loan 195.18 234.61 205.22 

Loan from the Government 108.19 147.62 95.07 

Loan from TUFIDCO 23.16 

Loan from TNUDF 86.99 86.99 86.99 

Grants & Contribution 217.08 219.63 369.39 

Grant & Contribution From 

Government 

142.40 181.77 327.89 

Contribution from others 3.16 3.16 2.82 

Municipal Contribution to 

Capital Works 

0.00 

Diversion from other TP fund 71.52 34.69 38.68 

Accumulated Depreciation 

Account 

283.69 366.08 517.15 

Capital reserve 0.00 0.00 

Ways and means Advance 0.00 0.00 

Current Liabilities 148.85 161.90 255.15 

Accumulated Surplus Account 24.02 19.01 4.60 

Income & Expenditure A/c -5.01 28.83 57.21 

TOTAL LIABILITIES 863.81 1030.06 1408.72 

ASSETS 

Fixed Assets 695.11 775.18 978.51 

Current Assets 168.70 254.88 430.21 

TOTAL ASSETS 863.81 1030.06 1408.72 

Source : Annual Accounts/Budget Estimates of Dharapuram Municipality

8.3 Analysis of Income 

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Figure 8-2: Break up of Income of Dharapuram Municipality for FY 2005-06 

0.00% 

0.83% 

8.30% 

17.79% 


45.21% 

15.11% 

2005-06 

3.75% 

9.01% 

Property Tax 

Other Tax 

Assigned Revenue 

Devolution fund 

Service Charges and 

Fees 

Grants and Contribution 

Sale & Hire Charges 

Other Income 

During the last 4 years, the income of the Municipality has fluctuated between Rs.329.37 

lakhs in FY 2004-05 to Rs.403.60 lakhs in FY 2005-06. This income has shown a CAGR 

of close to 6% in the last 4 years. External funds such as Assigned revenue and Devolution 

funds have been significant contributors to the revenue of Dharapuram Municipality 

8.3.1 Own Sources 

8.3.1.1 Municipal Taxes 

Municipal taxes consisting of Property and Other Taxes (Mainly Professional Tax) have 

contributed about 19%-22% of the total income of Dharapuram Municipality in the last 4 

years. The Municipal taxes have been growing at a CAGR of 6% in the last 4 years. 

Property Tax 

The most important category in the own sources of income is the property tax. This tax is 

imposed on land and buildings depending upon their nature of use. Property tax accounts 

for about 80% of the total Municipal taxes. 

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Table 8-C Property Tax Particulars 


Categories Rate per Sq . ft (Rs) 

A 1.50 

B 1.00 

C 0.80 

D 0.70 

Slab (in %) 

General 6% 

Sanitation 2% 

Drainage 3% 

Lighting 7% 

Water Supply 6% 

Education 5% 

No. of Assessment 2007-08 13623 

No. of Assessment 2002-03 13175 

% Increase in Number Assessments for the Past 6 years 1% 

CAGR in collection over the Last 4 years 4.85% 

Total Property Tax collection(Rs.in Lakhs in 2005-06) 60.97 

Number of Staff in Revenue Department 7 

Collection per person (Rs.in Lakhs) 8.71 

Average Tax Demand per property(Rs.) (2006-07) 949 

Average annual P.T Collection per Property(Rs.) (2006-07) 900 

No. of Unapproved Layouts & GO for regularizing set at Dec 2007 44 

% of arrears pending more than 6 years 


The municipality needs to enhance its revenue from Property taxes by focusing on 

identifying newer assesses and improving the collection efficiency from the existing 

assesses. In the accounts proper provisioning should be made for writing off the arrears 

pending for more than 5-6 years. Reforms at the state level such as revision of property tax 

rates, fast track methods to overcome litigation delays, introduction of GIS to identify and 

mapping of unassessed properties can go a long way to solve the problem of stagnant 

collection of property tax. 

Other Taxes: 

Other Tax revenues are in the form of taxes levied on carriage & carts, animals, 

advertisement, professional tax and others. Professional tax is the other important 

contributor of the own sources of revenue. The other taxes have accounted for 20% of the

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total Municipal taxes in the last two years. The Other Tax collection has shown a healthy 

growth with CAGR of 14% over the last 4 years. 

Source: Dharapuram Municipality 

8.3.1.2 Non Tax Revenues 

Table 8-D Professional Tax Particulars 

Slab for Professional Tax 

Up to Rs.21000 NIL 

Rs.21000 to Rs.30000 Rs.75/= 

Rs.30001 to Rs.45000 Rs 188/= 

Rs.45001 to Rs.60000 Rs.375/= 

Rs.60001 to Rs.75000 Rs.565/= 

Above Rs.75001 Rs.750/= 

The second important component of the municipal revenue is the Non-Tax Revenues like 

the Service Charges and Fees, Sale & Hire Charges and Other Income. The share of non- 

tax revenues to total income has ranged between 26% to 29% in the last few years. 

Service Charges and Fees 

Service Charges and Fees account for about 8.30% - 10.92% of the total income of the 

municipality in the last few years. The major sources of income under this head are Fees 

for Bus Stand, Fees for Slaughter House, Building License Fees. This income has been 

stagnating in the last few years. Bus stand fee is the major revenue earner accounting for 

about half the income earned by the municipality under this head. 

Other Income 

The Municipality earns significant revenue through earnings from “other income”. The 

Income from Daily market and Rent on shopping complex have been the major drivers of 

the “other income”. Other income has grown by CAGR of 7% in the last four years. 

However the revenue generated through “other Income sources” has shown a fluctuating 

trend. 

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8.3.2 External Sources 

8.3.2.1 Assigned Revenue 

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Assigned Revenue includes revenues transfers to the ULB by the GOTN under specific 

acts. This source of revenue income comprises duty on transfer of properties, 

entertainment tax and other assigned revenue. The Share of Assigned Revenue has 

declined from Rs.72.40 Lakhs in FY 2002-03 to Rs.36.36 Lakhs in FY 2005-06. 

8.3.2.2 Devolution Fund 

Based on the Second State Finance Commission recommendations, GOTN transfers 8% of 

its state revenue to the local government. The contribution through devolution funds has 

shown a fluctuating trend ranging between Rs.109.04 lakhs in FY 2002-03 to Rs.182.46 

lakhs during FY 2005-06. 

8.4 Analysis of Expenditure 

The Revenue Expenditure of the ULB has been analyzed based on expenditure heads 

which can be broadly classified under the major heads outlined below: 

• Personal costs 

• Operating Expenses 

• Repairs & Maintenance Expenses 

• Programme Expense 

• Administrative Expenses 

• Finance Expenses 

• Depreciation

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Figure 8-3 Break up of Expenditure of Dharapuram Municipality for FY 2005-06 

4.45% 

4.68% 

1.17% 

22.16% 

2.25% 

14.22% 


8.4.1 Personal Costs 

2005-06 

10.22% 

40.01% 

0.85% 

Personel Cost I 

(Salaries) 

Personel Cost II 

(Others) 

Terminal and 

retirement benefits 

Operating Expenses 

Repairs & 

Maintenance 

Programme Expenses 

Administrative 

Expenses 

Finance Expenses 

Depreciation 

This expense mainly includes the staff salaries, Terminal and retirement benefits and 

allowances paid to the employees of the ULB. The Personal Cost has accounted for about 

half of the total Expenditure of the ULB in the last few years. The Salaries being the key 

component of personnel has grown by just 3% over the last 4 years 

8.4.2 Operating Expenses / Repairs & Maintenance 

Expenses relating to operations and Repairs and Maintenance are very critical indicators of 

the service management and maintenance capabilities and performance of the ULB. In this 

regard Dharapuram Municipality has utilized about 12% to 18% of its income towards 

meeting the operations and maintenance expenses for its infrastructure facilities excluding 

water supply in the last few years. 

8.4.2.1 Operating Expenses:- 

The Operating expense mainly consists of such expenses which are met towards the 

infrastructure facilities provided by the ULB like Power charges for Street Lights, 

Maintenance Expenses for Street Lights etc. The operating expenses account for about 

9.78%-16.45% of its income, and this is mainly spent for power and maintenance expenses 

of street lights. 

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8.4.2.2 Repairs & Maintenance 

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Repairs & Maintenance expense mainly consists of such expenses such as Heavy Vehicle 

Maintenance, Light Vehicle Maintenance, Sanitary/ Conservancy Expenses etc. The 

municipality spends less than 2% of its income for maintenance and repair works. 

8.4.3 Administrative Expenses 

Administrative Expense as a % of total income accounts for about 4%-In absolute terms 

this expense has shown a fluctuating trend ranging between Rs.11.98 lakhs in FY 2003-04 

to Rs.16.60 lacs in FY 2005-06. The CAGR of this expense has been 6% in the last 4 years 

8.4.4 Finance Expenses 

Finance expense in absolute terms has fallen from Rs.36.52 lakhs in FY 2002-03 to Rs. 

15.76 lakhs in FY 2005-06 and has shown a declining trend. 

8.5 Source & Use of Funds 

Figure 8-4 : Source and Use of Funds of Dharapuram Municipality as on FY 2005-06 

Sources of Funds (2005-06) 

4.06% 14.57% 

18.11% 

0.33% 

36.71% 

26.22% 

Loan 


Grants & 

Contribution 

Accumulated 

Depreciation 

Account 

Accumulated 

Surplus Account 

Current Liabilities 

Income & 

Expenditure A/c 

31% 

Use of Funds (2005-06) 

69% 

Fixed Assets 

Current Assets 

• Grants and Contributions and Loans from government have helped the 

municipality in meeting its fund requirements. Together the Total support from the 

government stands at Rs.422.96 Lakhs as on FY 2005-06 

• Nearly 64% of investment in fixed assets has been utilized in productive and 

useful assets excluding land and building .(as on FY 2005-06).

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8.6 Financials (Water Supply & Drainage Fund) 

Rs.in Lakhs 

Figure 8-5 : Income & Expenditure Account (Water Supply & Drainage Fund) 

150.00 

100.00 

50.00 

0.00 

Income & Expenditure Account ( Water Supply & Drainage 

Fund) 

2002-03 2003-04 2004-05 2005-06 


Year 

TOTAL INCOME 

TOTAL EXPENDITURE 

Table 8-E : Income & Expenditure Account ( Water Supply & Drainage Fund) 

Rs.in lakhs 

Particulars 2002-03 2003-04 2004-05 2005-06 

INCOME 

Water Tax 35.77 33.13 35.06 36.59 

Other Tax 0.00 0.00 0.00 0.00 

Assigned Revenue 

Devolution fund 

0.00 0.00 0.00 0.00 


Initial Deposit for New Water supply 

connections 

0.79 1.28 N.A 14.94 

Water Supply Connection Charges 0.12 0.30 N.A 3.97 

Metered/Tap rate water charges 41.76 41.62 N.A 43.94 

Charges for water supply through 

lorries 

0.07 0.06 

N.A 

0.00 


Grants and Contribution 0.00 0.00 N.A N.A 

Sale & Hire Charges 0.00 0.00 0.00 N.A 

Other Income 3.76 8.23 7.07 9.00 

TOTAL INCOME 82.28 84.62 101.52 108.44 

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Particulars 2002-03 2003-04 2004-05 2005-06 

EXPENDITURE 


Personnel Cost II (Others) 0.00 0.00 N.A N.A 

Terminal and retirement benefits 0.15 1.89 N.A N.A 


Power Charges for Head Water 

Works/Pumping & /Booster stations 

5.15 9.58 N.A N.A 

Others 0.61 N.A N.A N.A 


Maintenance Water Supply and 

Sewerage works 

5.00 13.77 

N.A N.A 


Programme Expenses 0.00 0.00 0.00 N.A 



Depreciation 5.46 12.22 12.75 13.39 


NET DEFICIT/SURPLUS 56.42 27.95 36.59 46.37 


Table 8-F : Balance Sheet ( Water Supply & Drainage Fund) 

Rs.in lakhs 

Particulars 2002-03 2003-04 2004-05 2005-06 

LIABILITIES 

Loans 210.85 185.73 185.73 185.73 

Loans from Government 185.73 185.73 185.73 185.73 

Loan from Others 25.12 0.00 0.00 0.00 

Grants & Contribution 41.69 56.69 76.69 76.69 

Accumulated Depreciation Account 15.57 28.75 41.50 54.89 

Capital reserve 0.00 0.00 0.00 0.00 

Current Liabilities 81.61 109.51 110.70 112.52 

Accumulated Surplus Account -112.50 -100.19 -63.59 -17.22 

TOTAL LIABILITIES 237.22 280.49 351.03 412.60 

ASSETS 

Fixed Assets 120.07 209.35 259.65 323.97 

Current Assets 117.15 71.14 91.38 88.62 

TOTAL ASSETS 237.22 280.49 351.03 412.60 

Source : Dharapuram Municipality

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Our Observations 


• The total income of the municipality under this fund has increased from Rs. 82.28 

lakhs in FY 2002-03 to Rs.108.44 lakhs in FY 2005-06 with a CAGR of 10% 

while the expenditure has increased sharply from Rs.25.86 Lakhs in FY 2002-03 

to Rs.62.08 Lakhs in FY 2005-06 with a CAGR of 34%. 

• Water taxes has grown by less than 1% over the last 4 years 

• Service charges and fees consisting mainly of Initial deposit for new water supply, 

metered/tap rate water charges has grown by 14% over the last 4 years. In this, the 

metered/Tap water charges which is the main component of total service charges 

and fees in the last few years has grown by less than 2 % in the last 4 years. 

• Grants and Contributions and Loans from government have helped the 

municipality in meeting its fund requirements. Together the Total support from the 

government stands at Rs.262.42 Lakhs as on FY 2005-06 

8.7 Financials (Elementary Education Fund) 

Figure 8-6 : Income & Expenditure Account (Elementary Education Fund) 

Rs.in Lakhs 

30.00 

20.00 

10.00 

0.00 


Income & Expenditure Account ( Elementary 

Education Fund) 

2002-03 2003-04 2004-05 2005-06 

Year 

TOTAL INCOME 

TOTAL 

EXPENDITURE 

Table 8-G :Income & Expenditure Account ( Elementary Education Fund) 

Rs.in lakhs 

Particulars 2002-03 2003-04 2004-05 2005-06 

INCOME 

Education Tax 17.96 18.77 19.86 20.85 

Other Tax 0.00 0.00 0.00 0.00 

Assigned Revenue 0.00 0.00 0.00 0.00 

Devolution fund 0.00 0.00 0.00 0.00 


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Grants and Contribution 0.00 0.00 0.00 0.00 

Sale & Hire Charges 0.00 0.00 0.00 0.00 

Other Income 0.71 0.78 1.33 1.39 

TOTAL INCOME 

EXPENDITURE 

18.67 19.54 21.19 22.25 


Personnel Cost II (Others) 0.00 0.00 0.00 0.00 

Terminal and retirement 

benefits 

0.00 0.00 0.00 0.00 



Programme Expenses 0.00 0.00 0.00 0.00 



Depreciation 1.76 1.79 1.73 1.82 

Muni contribution 0.00 0.00 0.00 0.00 


NET DEFICIT/SURPLUS 


16.91 17.75 19.25 20.21 

Table 8-H : Balance Sheet ( Elementary Education Fund) 

Rs.in lakhs 

Particulars 2002-03 2003-04 2004-05 2005-06 

LIABILITIES 

Accumulated Depreciation 3.94 5.73 7.46 7.46 

Accumulated Surplus 53.54 72.74 90.60 110.27 

Income & Expenditure Ac 19.20 17.85 19.67 25.03 

Current Liabilities 0.31 0.33 2.96 4.35 

TOTAL LIABILTIES 76.99 96.65 120.68 147.10 

ASSETS 

Fixed Assets 46.68 49.07 53.35 89.62 

Current Assets 30.31 47.58 67.33 57.48 

TOTAL ASSETS 76.99 96.65 120.68 147.10 


Our Observations 

• The Income has grown from Rs.18.67 Lakhs in FY 2002-03 to Rs.22.25 Lakhs in 

FY 2005-06 while the expenditure has remained under Rs.2 lakhs for the same 

period 

• This fund has shown a consistent surplus in the last few years as the expenditure 

under this fund has remained about Rs.2 Lakhs over the last four years

8.8 Financials Consolidated 

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Table 8-I : Consolidated Financials of the three funds. 

Particulars 2002-03 2003-04 2004-05 2005-06 

Rev. 

estimate 

2006-07 

Rs.in lakhs 

Budget 

2007- 

08 

INCOME 

Property Taxes 52.89 55.25 58.47 60.97 62.09 63.33 

Water Taxes 35.77 33.13 35.06 36.59 37.27 38.03 

Education Tax 17.96 18.77 19.86 20.85 21.08 21.50 

Other Tax 10.33 11.42 14.59 15.15 16.59 15.96 

Assigned Revenue 72.40 52.77 51.71 36.36 32.32 35.55 

Devolution fund 109.04 134.82 111.20 182.46 151.66 152.60 

Service Charges and Fees 78.39 77.27 95.37 96.34 85.32 86.05 

Fees for Bus stand 17.51 18.25 0.00 18.89 20.35 20.76 

Fees for Slaughter house 0.31 0.37 0.00 0.00 0.26 0.00 

Building License Fees 2.86 2.85 0.00 2.25 2.08 2.10 

Initial Deposit for 

New Water supply 

connections 

Water Supply 

Connection Charges 

Metered/Tap rate 

water charges 

Charges for water 

supply through lorries 

0.79 1.28 0.00 14.94 3.10 2.00 

0.12 0.30 0.00 3.97 0.57 0.65 

41.76 41.62 0.00 43.94 45.25 46.27 

0.07 0.06 0.00 0.00 0.02 0.10 

Other Fees 14.96 12.55 0.00 12.35 13.69 14.17 

Grants and Contribution 2.26 0.00 0.00 3.36 0.00 0.00 

Sale & Hire Charges 0.00 0.00 0.00 0.00 0.00 0.00 

Other Income 63.41 78.77 65.81 82.21 62.74 250.56 

Daily Market Fees 4.59 5.31 0.00 0.00 0.27 0.27 

Rent on Shopping Complex 30.60 32.24 0.00 27.42 28.00 28.56 

Rent on Community Hall 0.00 0.00 0.00 0.00 0.00 0.00 

Project Overhead 

Appropriation Expenses 

6.86 15.40 0.00 23.59 26.29 210.65 

Others 21.36 25.82 8.40 31.20 8.18 11.08 

TOTAL INCOME 442.45 462.20 452.08 534.29 469.07 663.58 

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Rev. 

estimate 

2006-07 

Budget 

2007- 

08 

EXPENDITURE 

Personnel Cost I (Salaries) 136.43 128.92 135.33 147.60 176.83 185.96 

Personnel Cost II (Others) 1.83 2.29 2.81 3.01 4.79 5.30 

Terminal and retirement 

benefits 

51.29 38.27 22.62 36.24 54.23 63.35 

Operating Expenses 34.02 39.89 80.73 73.10 63.89 79.76 

Maintenance Expense 

for Street Lights 

4.73 6.76 0.00 0.00 0.00 8.00 

Power Charges for 

Street Lights 

13.49 16.10 0.00 0.00 29.00 29.00 

Operating Expenses - 

Water Fund 

0.61 0.00 0.00 0.00 0.00 18.20 

Others 15.20 17.02 0.00 0.00 34.89 24.56 

Repairs & Maintenance 17.67 29.57 24.44 26.78 49.67 74.70 

Heavy Vehicles 3.68 3.90 0.00 0.00 14.20 6.25 


Head Water Works 

5.15 9.58 0.00 0.00 31.00 31.00 

Maintenance expense 

for Water Supply Works 

5.00 13.77 0.00 0.00 0.00 3.50 

Others - Water fund 0.78 0.34 0.00 0.00 0.51 26.19 

Others - Education Fund 0.00 0.00 0.00 0.00 0.00 0.00 

Others - Revenue Fund 3.06 1.99 0.00 0.00 3.96 7.76 

Programme Expenses 0.16 0.51 0.03 4.13 66.54 88.10 

Administrative Expenses 15.74 13.45 15.76 18.20 47.64 65.99 

Finance Expenses 36.55 36.63 16.62 15.76 8.58 11.12 

Depreciation 87.50 96.40 89.28 93.75 97.43 196.97 

TOTAL EXPENDITURE 381.19 385.94 387.61 418.56 569.60 771.25 

NET DEFICIT/SURPLUS 61.26 76.26 64.47 115.72 -100.53 -107.67 


The consolidated financials of Dharapuram Municipality shows net surplus position for 

the years 2002-03 to 2005-06. As per the estimates provided, Dharapuram faces a deficit 

position in the last two years.

8.9 Demand, Collection and Balance 

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Table 8-J: DCB for the Past 4 years 


S.No Particulars 

2004-05 2005-06 

Actuals 

2006-07 2007-08 

I PROPERTY TAX- DEMAND, COLLECTION AND BALANCE 

A. Demand 

Arrears 11.74 12.05 16.87 0.00 

Current 122.59 127.62 130.18 132.76 

Total 134.33 139.67 147.05 132.76 

B. Collection 

Arrears 7.25 5.85 16.87 0.00 

Current 117.38 116.94 130.18 132.76 

Total 124.62 122.79 147.05 132.76 

C. Balance 

Arrears 4.49 6.20 0.00 0.00 

Current 5.21 10.68 0.00 0.00 

Total 9.70 16.88 0.00 0.00 

II PROFESSION TAX- DEMAND, COLLECTION AND BALANCE 

A. Demand 

Arrears 1.09 0.83 18.04 0.00 

Current 14.59 15.64 146.77 15.96 

Total 15.68 16.47 164.81 15.96 

B. Collection 

Arrears 0.84 0.43 18.04 0.00 

Current 14.01 14.87 146.77 0.00 

Total 14.85 15.30 164.81 0.00 

C. Balance 

Arrears 0.25 0.40 0.00 0.00 

Current 0.58 0.77 0.00 15.96 

Total 0.83 1.17 0.00 15.96 

III WATER CHARGES- DEMAND, COLLECTION AND BALANCE 

A. Demand 

Arrears 8.98 7.00 8.26 0.00 

Current 41.69 43.94 45.25 46.27 

Total 50.67 50.94 53.51 46.27 

B. Collection 

Arrears 5.89 3.79 8.26 0.00 

Current 37.79 38.88 45.25 0.00 

Total 43.68 42.67 53.51 0.00 

Rs.in Lakhs 

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S.No Particulars 

2004-05 2005-06 

Actuals 

2006-07 2007-08 

C. Balance 

Arrears 3.09 3.21 0.00 0.00 

Current 3.90 5.06 0.00 46.27 

Total 6.99 8.27 0.00 46.27 

IV NON TAX ITEMS- DEMAND, COLLECTION AND BALANCE 

A. Demand 

Arrears 38.73 43.55 36.94 0.00 

Current 75.90 71.32 79.30 81.12 

Total 114.63 114.87 116.24 81.12 

B. Collection 

Arrears 9.31 12.03 36.94 0.00 

Current 61.79 65.91 79.30 81.12 

Total 71.10 77.94 116.24 81.12 

C. Balance 

Arrears 29.42 31.52 0.00 0.00 

Current 14.11 5.41 0.00 0.00 

Total 43.53 36.93 0.00 0.00 

Source: Dharapuram Municipality

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8.10 Outstanding Loan and Non-Debt Liability 

The Outstanding Loan balance and Non-Debt Liability of key components of Dharapuram 

Municipality is represented in the table below: 

Table 8-K : Outstanding Loan and Non-Debt Liability 

Rs.in Lakhs 

S.No Particulars 2007-08 

1.OUTSTANDING PRINCIPAL ON LOANS 

1 Loan from the Government 280.80 

2 Loan from TUFIDCO – Special Road works 76.39 

3 Loan from TUFIDCO – Others Nil 

4 Loan from TNUDF 58.42 

5 Other Loans 9.53 

Source: Dharapuram Municipality, TUFIDCO, TNUIFSL 

2. NON-DEBT LIABILITY 2005-06 

1 Library cess 21.89 

2 Provident Fund 5.19 

3 Terminal Benefits 1.86 

4 Group Insurance Schemes 7.04 

5 Dues- TWAD Board 0.53 

6 Dues- Electricity Board NA 

7 Survey Charges NA 


Note: Terminal Benefits includes Special PF cum Gratuity Scheme Recoveries + 

FBF/Group Insurance Scheme Recoveries 

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GENERAL : Financial matters, 

administration and Budget & Accounts 

9 INSTITUTIONAL INSTITUTIONAL CAPACI CAPACITY 

CAPACI TY 

ASSESSMENT 

ASSESSMENT 

ASSESSMENT 

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The organizational chart of Dharapuram Municipality and details of the staff strength 

for the various activities against the sanctioned list are given in Figure 9-1 and Table 

9-A respectively. 

9.1 Institutional Structure 

PUBLIC HEALTH : Sanitation, Drainage , 

Public Health, Birth & death registration 

- 

TOWN PLANNING 

and Approval 

: Planning, Designing 

Figure 9-1 Organization chart of Dharapuram Municipality 

MUNICIPALITY 

Executive Body Elected Body 

Commissioner 

ENGINEERING : Water Supply, Road 

laying and Street lights 

REVENUE : Tax & N on Tax Collection 


Chairman 

VICE CHAIRMAN 

WARD COUNCILORS (28) 

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Table 9-A: The Staff strength of the Dharapuram Municipality 

Executive Staff Sanctioned Appointed Post Vacant 

Administrative/General 

Manager 1 1 0 

Accountant 1 0 1 

Asst.Programmer 1 1 0 

Noon Meal Assistant 1 1 0 

Jr.Asst. 12 11 1 

Typist 2 1 1 

Record Clerk 2 1 1 

Office Asst. 3 2 1 

Office Night Watchman 1 0 1 

Engineering 

Municipal Engineer 1 1 0 

Junior Engineer 1 1 0 

Tap Inspector 1 0 1 

Electrical Superintendent 1 1 0 

Work Inspector 1 1 0 

Borewell Cleaner 1 1 0 

Water Supply Helper 1 1 0 

Fitter 1 1 0 

Turn cork 6 6 0 

Wiremen 3 2 1 

Wiremen Helper 3 2 1 

Watchman 3 3 0 

Power Tiller Driver 1 1 0 

Over Seer 1 0 0 

Avenue Cooly 3 3 0 

Gang Cooly 1 1 0 

Electrician 1 0 1 

Town Planning 

Town Planning office 

Grade II 

1 1 0 

Town Planning Inspector 2 2 0 

Assistant Draughtsman 1 1 0 

Chainman 4 0 0

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Executive Staff Sanctioned Appointed Post Vacant 

Revenue 

Revenue Inspector 1 1 0 

Revenue Assistant 6 6 0 

Office Assistant 1 1 0 

Public Health 

Sanitary Inspector 4 4 0 

Sanitary Supervisor 7 7 0 

Field Assistant 1 0 1 

Woman medical officer 1 0 1 

Municipal Health Officer 1 0 1 

Ayurvedic doctor 1 1 0 

Pharmacist 1 0 1 

F & A 1 0 1 

Family Planning officer 2 1 1 

Maternity centre 

watchman 

2 2 0 

P.H. Lorry Driver 5 4 1 

Maternity Aya 4 2 2 

Maternity Assistant 4 2 2 

Malaria Mazdoor 4 4 0 

Sanitary Workers 147 102 45 

Others 

Assistant Programmer 1 1 0 

Community organizer 1 1 0 


o As seen from the above table the vacancies are few against the sanctioned limit. 

o However in the Public Health section, vacancies of 45 conservancy staff are yet to be 

filled up. This is critical for maintaining a hygienic a clean city. Staff Salary pay slip for 

one representative month for all the sections have been enclosed in the Annexure. 

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10 

10 DEMAND DEMAND ASSESSMENT 

ASSESSMENT 

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Physical Infrastructure gaps have been identified based on Demand Supply Gap 

analysis for the current and for future population for the intervals 2008-09, 2012 – 13, 

2017-18 and for 2022-23 whereas Social Infrastructure demand assessment is done 

based on the opinion and suggestions given by OWG members as well as on the basis 

of Rapid Urban Assessment. Demand Assessment is done separately for both 

Physical and Socio-economic Infrastructure and the same is presented in Table 10-A 

and Table 10-B respectively. 

Table 10-A Demand Supply Gap Analysis for Physical Infrastructure 

Particulars 2008-09 2012-13 2017-18 2022-23 

Dharapuram projected population 69778 73706 79146 85455 

Water Supply MLD 2008-09 2012-13 2017-18 2022-23 

Dharapuram water demand @ 135 

lpcd 

9.4 10.0 10.7 11.5 

Existing Supply in Summer 4.0 4.0 4.0 4.0 

Gap 5.4 6.0 6.7 7.5 

Water Treatment Plant capacity 

in MLD 

Demand for treatment plant 

capacity 

2008-09 2012-13 2017-18 2022-23 

9.4 10.0 10.7 11.5 

Existing Treated water supply 3.0 3.0 3.0 3.0 

Gap 6.4 7.0 7.7 8.5 

Water Distribution Network in 

Kms 

2008-09 2012-13 2017-18 2022-23 

Existing distribution length 49.0 49.0 49.0 49.0 

Road length existing and proposed 58.2 73.7 87.1 102.5 

Gap 9.2 24.7 38.0 53.5 

Water Service connections 2008-09 2012-13 2017-18 2022-23 

No of Assessments 13807 14584 15661 16909 

No of service connections 7160 9480 13312 14373 

% service connections 51.9 65 85 85 

Gap 48.1 35 15 15 

Storage capacity in MLD 2008-09 2012-13 2017-18 2022-23 

Existing Storage Capacity 3.2 3.2 3.2 3.2 

Storage capacity demand in MLD 3.1 3.3 3.5 3.8 

Gap in MLD Nil 0.1 0.3 0.6 

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Particulars 2008-09 2012-13 2017-18 2022-23 

Sewage generation in MLD 2008-09 2012-13 2017-18 2022-23 

Dharapuram sewage generation 7.5 8.0 8.5 9.2 

STP capacity in MLD 2008-09 2012-13 2017-18 2022-23 

Existing Capacity 0.0 0.0 0.0 0.0 

Gap 7.5 8.0 8.5 9.2 

Sewer connections 2008-09 2012-13 2017-18 2022-23 

Proposed connections 0.0 0.0 10962.0 11836.0 

Demand for sewer connections 9665 10209 10962 11836 

Gap 9665 10209 0 0 

Road network in Kms 2008-09 2012-13 2017-18 2022-23 

Existing road network in Kms 58.2 58.2 58.2 58.2 

Per Capita road length assumed 1.0 1.1 1.2 

Road length demand @ 1to 1.5 

meter per person 

73.7 87.1 102.5 

Gap 15.5 28.9 44.3 

Storm water drainage in Kms 2008-09 2012-13 2017-18 2022-23 

Dharapuram existing SWD 13.1 13.1 13.1 13.1 

Storm water drain demand 76 96 113 133 

Gap 62.54 82.70 100.06 120.19 

Solid waste generation in MT 2008-09 2012-13 2017-18 2022-23 

Per capita waste in grams per day 430 447.39 470.21 494.20 

Dharapuram waste generation 30.0 33.0 37.2 42.2 

Growth rate assumed 1.00% 

Street Lighting 2008-09 2012-13 2017-18 2022-23 

Dharapuram existing lights 2144 2144 2144 2144 

Road length in Kms 58.2 73.7 87.1 102.5 

Street light demand @ one light 

per 30 m 

2457 2902 3418 

Gap 313 758 1274

Particulars 

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Table 10-B : Demand Assessment for Socio-Economic Infrastructure 

Project 

requirements 

New School creation Not required • Nil 

Existing school 

infrastructure up 

gradation 

Creating new health 


Maternity center 

Parks and Playfields 

development 

Vegetable Market 

Improvement 

Community Hall up 

gradation / Creation 

Slaughter house up 

gradation 

Municipal building 

renovation 

Required • Nil 

Not required • Nil 

Renovation 

required 


Required 

Projects proposed by the 


• Maternity centre is being improved 

under Part II scheme. 

• Improvements proposed in Master 

Plan 


Required 

Required 

Burial ground / Gasifier Required • Nil 

Upgrading Commercial 

complexes 

Creating new complexes 

Not required 

Required in 

Poolvadi pirivu 

• Slaughter house is getting improved 

under Part II scheme. 

• Planning to sent the proposal to 

CMA 

• Nil 

• Nil 

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11 CONSULTATION 

ONSULTATION WITH WITH WITH OWG 

OWG 

11.1 Operational Working Group 

The success of the City Corporate cum Business Plan depends on the extent of 

participation by the various agencies involved in urban governance and service 

delivery. As it is very rightly said “Business Plan is an exercise ‘For’ the people, ‘Of’ 

the people and ‘By’ the people.” perception and views of the representatives from the 

municipality and various Para-Statal agencies are of paramount importance. 

To bring all the agencies involved in urban governance and service delivery under one 

platform for the consultation process, Operational Working Group (OWG) was 

formed. The first formal Operational Working Group (OWG) meeting was held in 

Dharapuram Municipality Office on 13.02.2008. The OWG members had a wide 

representation from 

1. Administrative members of the Municipality 

2. Elected members of the Municipality 

3. Representatives from Slums /SC /ST 

4. Senior Citizens 

5. Self Help Groups 

6. Women Groups 

7. NGO members 

8. Officials from Para-Statal agencies 

During the first formal OWG meeting, the Consultants made a presentation on the 

Rapid Urban Assessment as well as the demand assessment including the current 

status of the Dharapuram Town in terms of Infrastructure, Financial and Institutional 

aspects. 

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Projects already identified by the Municipality and additional projects proposed by the 

Consultants based on the Demand Supply Gap analysis taking into consideration 

current and future needs and requirements were also presented and discussed during 

the meeting. During the presentation and subsequent interaction with OWG members, 

many ideas and suggestions were made and the same has been encapsulated below 

and the same has been considered and incorporated in this Final Report. 

Physical 


Water Supply 

Table 11-A Suggestions and projects 

Sector 

Components 

Water Sources 

Head works and 

Pumping main 

ESR / GSR 

Distribution 

Network 

Key Suggestions / Projects identified 

• Alternative water source of Thirumoorthy 

Dam can be tapped for Water supply source. 

However, Investments have already been 

made for setting up Cauvery combined water 

supply scheme by TWAD. Supply to the 

municipal area by TWAD gets drastically 

reduced due to supply to the habitations on the 

way. 

• Check dam near head works on Amaravathi 

river can be constructed 

• Infrastructural upgradation is required like 

additional pumping main, renovating filter 

house (slow sand filter), laying pipeline for 

connecting infiltration well and collection 

well, providing infiltration well & feeder line 

are required 

• OHT required in Pollachi road of 10 Lakh 

capacity required 

• OHT required at Ellish Nagar of 2 lakh 

capacity required 

• Replacement of existing distribution line for a 

length of 2 Km is required.

Sewerage and 

Sanitation 

Storm Water 

Drainage 

Roads 

Traffic and 


TNUIFSL 


Others • Treatment Plant requires up gradation 

Underground 

Drainage 

Public Toilets 

New Drain 

Provision 

Kutcha road up 

gradation 

Pucca road 

improvement 

Building New 

Roads / Links 

Bye pass / 

Highway projects 

Connectivity 

Improvement 

Traffic 

Management / 

Junction 

Improvement 

• Implementing UGD before 2012 

• New toilets are required in Kamarajapuram, 

Chithrauvthan Palayam, Kattur and Udumalai 

Kottapulli Palayam 

• Renovation and maintenance work of existing 

toilets are required in Kamarajapuram, 

Chirauvthan Palayam Kattur, Achiyur Road, 

Krusthuva Anuper Palayam, Kollathu Punjai 

Palayam, Kottapuli Palayam Road. 

• Drains to be laid as proposed in UIDSSMT 

scheme 

• Additional drains to be provided as per 

demand supply gap analysis 

• Kutcha road to be converted into Pucca roads. 

• Implementing roads improvement works 

proposed under UIDSSMT scheme 

• New road development as per Demand Supply 

Gap analysis 

• No suggestions 

• No suggestions 

• Traffic signal required in Pollachi Road, 

Amaravathi bye-pass, (NH) which has rotary 

intersection and even landscaping 

• Similarly five corner junction road require 

junction improvement scheme. 

• Pookadai Junction improvement scheme is 

required. 

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Solid Waste 

Management 

Street Lighting 

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Bus stand / 

railway station 

Imp 

Transport system 

(Both Bus and 

Rail) 

Door to Door 

collection and 

Segregation 

Vehicle 

requirements 

Dumping site / 

Compost yard 

User Charges 


• Implementing Bus stand extension project as 

envisaged in Master Plan 

• Eastern side of the town can be connected by 

Town buses by shifting Town Bus stand to the 

Weekly market 

• Municipality is open to the idea of waste 

segregation at source 

• Vehicles are not required as of today 

• No improvements suggested 

• Not open to collection of user charges for 

SWM. 

Public Awareness • Required for waste segregation at source 

Energy Saving 

Initiatives 

• Can be adopted with the help of private 

participation

Social 


Schools/Colleges 

Hospitals / 

Primary Health 

centers 

Parks and 

Playgrounds 

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Sector 

Components 

New school 

requirements 

Renovation of 

existing Schools 

New Hospital 

Requirements 

Improvements in 

existing health 

centers 

Proposed parks 

and Playgrounds 

Approved layout 

for parks and 

playgrounds 


Improvement 

Daily Market Revenue 

Weekly Market 

Enhancement 

measures 


Improvement 

Revenue 

Enhancement 

measures 


Key Suggestions 

• Colleges are required 

• Improvement of existing class rooms in 

Kolinzivadi School, OPS Road school area 

Kolaputhupunjai. School, NN Pattai 

(Valaikkara school) required. Water supply 

arrangements needs to improve in NCP school 

• Not suggested 

• Upgrading the existing hospital by increasing 

the bed capacity 

• Solaikadai veedhi park and housing unit park 

can be developed 

• 16 approved layouts can be developed into 

parks and playgrounds 

• Improvement needed as suggested in the 

Master Plan 

• Revenue can increase by implementing the 

proposal 

• Improvement needed as suggested in the 


• Revenue can increase by implementing the 

proposal 

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Community hall 

Slaughter House 

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Creating 

Community hall 

Upgrading 

existing halls 

Slaughter house 

improvement 

scheme 

Others 

New center 

Requirements 

Maternity Center Improvements in 

Municipal 

building 

Burial grounds / 

existing Maternity 

centers 

Creating new 

blocks / 

Improving 

existing blocks 

Burial ground 

Improvement 

Gassifier Gassifier 

Commercial 

complexes / 

Shops 

Municipal vacent 

lands 

provision 

Creating new 

complexes 

Upgrading 

existing shops 

Development 

options suggested 


• Municipality requires a community hall. 

Bungalow land at park road near Anjeneyar 

koil can be used for building a Community 

hall. 

• No hall currently exisitng 

• Slaughter house E type is getting improved @ 

9 lakhs under Part II scheme. 

• Gasifier is required and can be funded through 

Part II schemes 

• New centre not required 

• Maternity centre is being improved at an 

estimated cost of Rs.7 lakhs to be funded 

through Part II scheme by March 2008 

• Office building requires renovation and 

additional floor space 

• No Improvements suggested 

• Gasifier requirement is suggested by the 

OWG members 

• Complex near poolvadi pirivu 

• Not suggested 

• Poolvadi pirivu – land is available for revenue 

enhancement.

Sector 

Slums and Urban 

Poverty / 

Environmental 

Issues 

Sector 

Urban Finance / 

Institutional 

Framework 

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Sector 

Components 

Toilet provision in 

slum areas 

Other 


provisions 

Water Channel 

Improvement 

Flood related 

issues 

Sector 

Components 

Areas for 

privatization 

User charges 



• Implementing Community Toilets proposed 

under IHSDP 

• Implementing IHSDP proposal 

• Raja channel can be de-silted and properly 

embanked. 

• Drains are required to prevent water 

stagnation 


• Currently privatized for collection of waste in 

SWM- Responsibility of the contractor are 

door to door collection of waste segregated 

and dumping the same in dumping ground. 

• Not open to collection of user charges for 

SWM. 

11.2 Sector Priority based on OWG opinion survey 

Projects identified both by the Municipality and by the consultants cannot be taken at 

one step for implementation due to constraints like finance, institutional capabilities 

etc. Thus, phasing of the projects based on stake holder’s priority could be a viable 

option for implementing projects. During OWG meeting, Stakeholders have been 

asked to prioritize the sectors pertaining to Physical infrastructure, Social 

Infrastructure and Environment and is presented in a scale of 0-100 1 scores. 

1 Sector is highly prioritized by the Stakeholders if it gets 100 score and least prioritized if it 

gets 0 score. 

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11.1.1 Physical Infrastructure Priority 

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Based on the opinion survey conducted during OWG meeting, Stakeholders have 

given priority to the sectors related to Physical infrastructure on the following order: 

1. Drinking Water Supply 

2. Road Network 

3. Storm Water Drainage 

4. Under Ground Drainage 

5. Street lighting 

6. Solid Waste Disposal 

7. Parking facilities 

However, road cum Storm Water works can be ideally taken up after implementing 

UGD system proposed. Hence Drinking Water supply, UGD, Road and Storm Water 

has to be given first, second, third and fourth priority respectively. 

Figure 11-1 Sector prioritization by the Stakeholders (Physical Infrastructure) 

Parking Facilities 


SW Disposal 

SW Drainage 

UD Drainage 

Drinking Water 

Road 

26.11 

37.58 

49.68 

56.05 

66.88 

70.70 

100.00 

0 20 40 60 80 100 

Source : Survey findings

11.1.2 Social Infrastructure Priority 

TNUIFSL 


Based on opinion survey conducted during OWG meeting, Stakeholders have given 

priority to the sectors related to Social infrastructure on the following order: 

1. Health facilities 

2. Schools and Colleges 

3. Parks, Playfields 

4. Burial ground / Gasifier crematorium 

5. Daily / Weekly Market 

6. Community Hall 

7. Public Transport 

8. Slaughter House 

Since the town lacks basic infrastructure facilities like adequate treated water, 

sewerage and sanitation, Citizens of Dharapuram are susceptible to various health 

hazards. Hence, they have insisted Health facilities as one of their high priority 

sector. 

Figure 11-2 Sector prioritization by the Stakeholders (Social Infrastructure) 

Daily M arket 

Slaughter House 

Burial Ground/Crematorium 

Community Hall 

Health facilities 

Schools & Colleges 

Public Transport 

Park and Playfield 

Source : Survey findings 

36.99 

48.63 

57.53 

55.48 

73.97 

76.03 

100.00 

0 20 40 60 80 100 

97.26 

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11.1.3 Environmental Issues 

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Based on opinion survey conducted during OWG meeting, Stakeholders have given 

priority to the Environmental Issues on the following order: 

1. Air pollution 

2. Water Pollution 

3. River/Lake 

4. Land Pollution 

5. Noise Pollution 

6. Drought 

7. Open space inadequacy in the form of parks / Playgrounds and 

8. Flood 

Figure 11-3 Sector prioritization by the Stakeholders (Environmental Issues) 

Drought 

Floods 

Open space 

Noise Pollution 

Land Pollution 

Water Pollution 

Air Pollution 

River/Lake 

Source : Survey findings 

17.24 

42.07 

43.45 

40.00 

62.07 

71.72 

93.10 

100.00 

0 20 40 60 80 100 

Figure 11-4 Consultation with OWG members in Dharapuram

TNUIFSL 


During the OWG meeting held on 24 th December 2008, the Consultants made a 

presentation on the projects identified, reforms required for implementing the projects 

and the funding pattern for the projects identified under sustainable scenario. 

Comments and suggestions received during the consultation have been incorporated in 

this final report. 

Figure 11-5 OWG consultation for Report Finalisation 

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12 S S W W O O TT 

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Based on Stakeholder’s perception and view points expressed in the OWG meetings 

and on the basis of assessment done by the consultants, an attempt has been made to 

evaluate Strength, Weakness, Opportunities and threats of the city which is shown 

below: 

Weakness 

Town is dependent on distant Cauvery 

river source (at 40 Kms) and TWAD. Per 

capita supply is also low (57 lpcd) 

only 23 % roads are covered by SWDs 

High dependance on external funds 

(around 50 %) 

Strength 

Town lies in-between Cauvery and 

Bhavani confluence. 

City known for Handloom and Carpet 

Manufacturing 

Declared as a tourist centre by 

Government of India (Sangameswarar 

Temple) 

Railway (ERODE) as well as Highway 

(NH -47) link in its proximity. 

E-governance and privatization 

initiatives (Street lights and Solid 

Waste) 

Town has no major Industrial activity 

except one spinning mill. 

BPL population is around 35 %. 

Flood prone area 

Threats 

Inadequate income deters 

Municipality from taking Capital 

Intensive projects 

Opportunities 

Proposed Infrastructure Projects 

such as UGD, Bus stand Extension, 

Compost Yard projects can 

enhance the Infrastructure of the 

town 

Extending the Municipal limits by 

adding Kuruppunaickan palayam, 

Oratchi Kottai, Jeeva Nagar, 

Servarayan palayam, Pudiya and 

Palaya kadayaam patti and 

Thottipalayam. 

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13 CONSOLIDATED CONSOLIDATED ISSUES 

ISSUES 

Water Supply 

Sewerage 

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The issues identified during Rapid Urban Assessment as well as the issues indicated 

by the OWG members were consolidated sector wise and are presented below: 

Table 13-A: Consolidated Issues 

Sector Issues 

Storm water drainage 

Traffic and 


• Per Capita supply is low (57 lpcd during summer) 

• One of the two existing system is old (Amaravathi river 

water supply scheme 1964) 

• Nearly 2 Km existing distribution lines are dilapidated 

which needs replacement 

• Ellish nagar is facing water shortage problem 

• No comprehensive sewerage system as on today 

• Six existing toilets are in worst damaged condition which 

needs maintenance 

• Absence of public conveniences in Kamarajapuram, 

Chithravuthan palayam and Udurnalai Kottapalli palayam. 

• 23 percent of the roads are only covered by Storm water 

drains 

• Flood problem during rainy season 

• SWD works proposed under UIDSSMT is pending due to 

UGD works proposed 

• Widening major links like Erode-Ottanchathram road and 

Pollachi-Dharapuram-Karur road 

• Inadequate Bus parking space and infrastructure 

inadequacies 

• Traffic conflicts in Pollachi road, in Amaravathi bye-pass, in 

five corner junction and in Pookadai junction 

• 2 Km roads are kutcha roads 

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Solid Waste management 


Slums and Urban Poverty 

Social infrastructure 

Urban Finance 

Capacity Assessment 

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• Household segregation of waste hasn’t been adopted in the 

town 

• Absence of energy saving street lighting mechanism 

• Large number of slum pockets (14) 

• 27 percent of the total population is living in slums 

• 35 percent of the total population are living below poverty 

line 

• Inadequate infrastructure facilities in slum areas 

• IHSDP proposed is yet to be implemented due to delay in 

approval and fund constraints. 

• Municipality has only one park developed 

• Town has no Gasifier crematorium 

• Daily market and weekly market have spaces undeveloped 

• Space constraints in Municipal Office building 

• Town has no community hall 

• 16 approved layouts are undeveloped as parks and 

playgrounds 

• NCP school has no water supply arrangements 

• Class room infrastructure inadequacy in four municipal 

schools 

• High dependence on external funds 

• Fluctuating trend in Revenue Income 

• Partially privatisation only in SWM.

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14 SECTORAL SECTORAL STRATEGY STRATEGY AN AND AN ACTION 

ACTION 

PLAN PLAN 

PLAN 

In order to address the issues identified during rapid urban assessment stage and 

during OWG meetings, the sectoral strategies and action plans have been proposed in 

this stage. Such action plans and strategies are converted into projects and are phased 

out based on the priority suggested by the OWG members which is broadly explained 

in the subsequent chapters. 

14.1 Sectoral Strategy 

Action plans for improving the existing situation of various sectoral components as 

well as for creating new infrastructure facilities have been formulated in consultation 

with the Operational Working Group members and are listed below: 

Table 14-A Action Plan for future development of the town 

Sub sector Strategic Plan / Action plan 

Water 

Supply 

• Replacing 2 Km distribution network with 4 inch PVC pipe 

• Constructing OHT at Ellish Nagar 

• Laying additional pumping main – 12 inch AC pipe 

• Providing slow sand filter in Filter house 

• Laying pipe line from Infiltration well to collection well 

• Providing Infiltration well – 4.5 M dia and 6 M depth. 

• Laying distribution network for 24.7 Km by 2012-13, 13.4 Km by 

2017-18 and 15.5 km by 2022-23. 

• Setting up 3 Lakh capacity OHT by 2017-18 and one more 3 lakh 

capacity OHT by 2022-23. 

• Providing feeder line for 3 Km 

Sewerage and • Implementing UGD for Dharapuram before 2017-18. 

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Sanitation 

• Renovating 6 toilets as suggested by OWG members 

Storm water 

drainage 

Solid Waste 

Management 

Traffic and 



Slums and 

Urban Poverty 

• Construction of three new toilets at Kamaraja Puram, Chitravuthan 

Palayam and Udurnalai Kottapalli Palayam. 

• Implementing UIDSSMT proposals – 22.71 kms 

• Constructing 50% of the demand supply gap length between 2017-18 

to 2022-23 i.e. 48.74 Km (50% of 97.48 Km total gap length ) 

• Purchasing segregation bins for each household in Dharapuram 

Municipality with private sponsorship 

• Protective gear for all conservancy workers once in every two years. 

• Constructing new 15.5 Km BT road by 2012-13, 13.4 Km by 2017-18 

and 15.5 by 2022-23. 

• Roads works proposed for a length of 11.48 Km under UIDSSMT has 

to be implemented 

• Resurfacing of roads after Implementing UGD for a length of 27.08 

Km (BT roads - 38.56 Km deducted from 11.48 Km works proposed 

under UIDSSMT) 

• Converting 2 Km earthen road into BT road 

• Relaying existing and newly created Bitumen roads once in every 

three years. 

• Installing Traffic Signal in Amaravathi bye-pass, Pollachi road. 

• Junction Improvement schemes in Pookadai junction, five corner 

junction 

• Managing street lighting mechanism with the help of private 

participation 

• Installing energy saving CFL, TFL lamps, Electronic Chokes, Voltage 

Controller and Timers. 

• Community Toilet construction proposed in IHSDP 

• Dwelling Unit Up gradation proposed in IHSDP

TNUIFSL 



Socio-Economic 


Urban Finance 

Institutional 

Framework 

• Providing Street light arrangements to Kamarajapuram and Devendra street 

as proposed in IHSDP. 

• Upgrading the government hospital by increasing the bed capacity. 

• Improving existing class rooms for four schools. 

• Water supply arrangements to NCP School Area. 

• Developing 16 approved layouts into parks and playgrounds. 

• Setting up Community hall near Travellers Bungalow land at park 

road near Anjeneyar koil. 

• New Office Building. 

• Daily market improvement Scheme. 

• Weekly Market improvement Scheme. 

• Setting Up Gassifier crematorium. 

• Setting up wind mills for energy generation. 

• Setting up New Bus stand 

• Revision in Property Taxes every five years. 

• Periodic revision in monthly charges and deposit charges for water 

supply and sewerage 

• Gradual and phased introduction of User charges for Solid Waste 

Management backed by revision in charges every five years. 

• Achieving close to cent percent collection efficiency in Tax and Non 

Tax revenue. 

• Achieving 85% service coverage in water supply by 2017-18. 

• Achieving 70% service coverage in Sewerage. 

• Privatization and outsourcing of critical services like O & M of Street 

Lighting, Water and Sewerage systems to be introduced gradually. 

• Qualitative computerization and E-Governance of all the modules. 

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

14-3


T 

N 

15 CAPITAL CAPITAL INVESTMENT INVESTMENT PPLAN 

P LAN 

15 

15 

U 

The Capital Investment Plan (CIP) identifies the investment requirement of the town without taking into consideration the financial 

D 

feasibility of the projects, which would be covered in Financial Operating Plan. The investment requirement is Rs 7365.98 lakhs. 

Table 15-A : Consolidated Sector wise Capital Investment requirements 

P 

Rs. in Lakhs 

I 

III 

Project Sector Total Investment 2008-09 to 2012-13 2013-14 to 2017-18 2018-19 to 2022-23 

Water Supply 535.00 495.00 20.00 20.00 

UGD 3672.00 3672.00 0.00 0.00 

Sanitation 17.00 2.00 15.00 0.00 

Storm Water Drainage 1260.90 0.00 375.75 885.15 

Solid Waste Management 281.77 165.46 56.61 59.70 

Roads, Traffic and Transportation 1177.20 260.50 420.25 496.45 

Street Lighting 82.92 30.06 24.48 28.38 

Socio-Economic Infrastructure 339.20 189.20 120.00 30.00 

Final 

Report 

School Building 39.00 39.00 0.00 0.00 

Parks and Playgrounds 80.00 25.00 25.00 30.00 

Community Hall 50.00 0.00 50.00 0.00 

15-1 

Municipal Building 20.00 20.00 0.00 0.00 

Daily and Weekly Market 30.00 30.00 0.00 0.00 

Gassifier 45.00 0.00 45.00 0.00 

IHSDP 75.20 75.20 0.00 0.00 

TOTAL CAPEX 7365.98 4814.22 1032.09 1519.68 

TNUIFSL


T 

Figure 15-1 Sector wise percentage share 

N 



4.6% 


1.1% 

Water Supply 

7.3% 

U 

Roads, Traffic and 


16.0% 

D 

Solid Waste 

Management 

3.8% 

P 

UGD 

49.9% 

Storm Water Drainage 

17.1% 

Sanitation 

0.2% 

I 

15.1 CIP for Physical Infrastructure sectors 

III 

During OWG meetings and on the basis of demand supply gap analysis, various works have been identified under different sectors like 

Water Supply, Sewerage, Solid Waste Management, Storm Water Drains, Roads and Street Lighting which are classified as Physical 

Final 

Report 

Infrastructure sectors. The Budget Estimates for the identified projects have been carried out based on TWAD Board Standard 

Schedule of Rates 2007-08, market rates and with some assumptions on the technical aspects and wherever the estimates are available 

15-2 

with the Municipality the same has been considered for those works 

TNUIFSL


T 

N 

15.1.1 Water Supply 

U 

During OWG meetings and based on demand supply gap various works have been identified under Water Supply Sector. The works 

identified and phase wise investment for the various works are listed in Table 15-B. 

D 

The total estimated cost for the Water Supply Works - Rs. 535.00 lakhs. 

P 

Implementing Agency – Dharapuram Municipality 

Project Manager – Municipal Engineer 

Table 15-B Project List and Budget Estimates for Water Supply Works 

I 

Rs. in Lakhs 

III 

Final 

Report 

15-3 

Phasing 

Project List Remarks Estimated 2008-09 to 2013-14 to 2018-19 to Implementing 

cost 2012-13 2017-18 2022-23 Agency 

Construction of 4.5 m dia Identified during 

20.1 20.1 0.00 0.00 Municipality 

Infiltration well 

OWG meeting 

Supply and laying of 

Identified during 


connecting pipe 

OWG meeting 

Construction of 6X8 m dia 


collection well cum 


OWG meeting 

pumphouse 



OWG meeting 

124 124 0.00 0.00 Municipality 


OWG meeting 

Supply erection of turbine 

pumpset 


pumping and branch mains 

TNUIFSL


T 

Phasing 

Project List Remarks Estimated 2008-09 to 2013-14 to 2018-19 to Implementing 

cost 2012-13 2017-18 2022-23 Agency 

Construction of 5ll service Identified during 


reservoir 

OWG meeting 




distribution system 

OWG meeting 

Provision of obtaining Identified during 


power supply 

OWG meeting 

Setting up 3 lakh capacity Based on Demand 

OHT by 2017 and one more Supply Gap 


of 3 lakh capacity by 2022 Analysis 

Total for Water Supply Works: 535.00 495.00 20.00 20.00 

N 

U 

D 

P 

I 

15.1.2 Sewerage and Sanitation 

III 

Under Sewerage and Sanitation, DPR is prepared by TWAD board for Dharapuram municipal area. Apart from UGD, construction of 

public toilets and maintenance of toilets are identified during OWG meetings. Detailed list of works, costing and phase wise 

implementation is given in Table 15-C. 

Final 

Report 

15-4 

The total estimated cost for the Sewerage & Sanitation Works - Rs. 3689.00 lakhs. 

Implementing Agency – TWAD / Dharapuram Municipality 

Project Manager – Executive Engineers from TWAD / Municipal Engineer 

TNUIFSL


T 

Table 15-C Project List and Budget Estimates for Sewerage and Sanitation Works 

N 

Rs. in Lakhs 

U 

D 

P 

Phasing 

Implementing 

Project List Remarks Estimated 2008-09 to 2013-14 to 2018-19 to Agency 

cost 2012-13 2017-18 2022-23 

DPR 

UGD for Dharapuram 

TWAD / 

prepared by 3672.00 3672.00 0.00 0.00 



TWAD 

Identified 

Maintenance for six toilets during OWG 


meeting 

I 


Identified 

during OWG 

meeting 

III 

Construction of three new 

toilets at Kamarajapuram, 

Chithravuthan palayam and 

Udurnalai Kottapalli 

palayam. 

Total for Sewerage and Sanitation Works: 3689.00 3674.00 15.00 0.00 

15.1.3 Storm Water Drainage 

Final 

Report 

Under Storm Water Drainage Scheme, construction of new closed drains as part of UIDSSMT Scheme and construction of additional 

closed drains identified based on Demand Supply Gap Analysis are considered. The works identified and phase wise investment for the 

various works are listed in Table 15-D. 

15-5 

The total estimated cost for the Storm Water Drainage Works – Rs. 1260.90 lakhs 

Implementing Agency – Dharapuram Municipality 


TNUIFSL


T 

Table 15-D Project List and Budget Estimates for Storm Water Drainage Works 

Rs. in Lakhs 

N 

Implementing 

Agency 

Phasing 

2008-09 to 2013-14 to 

2012-13 2017-18 

Project List Remarks Estimated 

cost 

U 

2018-19 to 

2022-23 

D 


Works 

proposed 

under 

UIDSSMT 

Constructing Storm Water 

Drainage lines proposed for a 

length of 22.71 Kms 

P 


Based on 

Demand 

Supply Gap 

Analysis 

Constructing additional Storm 

water Drainage lines for 97.48 

Km (Considering only 50% of 

the demand for the phase 

year 2017 to 2022 i.e 48.74 

Km 

I 

Total for Storm Water Drainage Works 1260.90 0.00 375.75 885.15 

III 

15.1.4 Solid Waste Management 

Final 

Report Under Solid waste Management, Protective gear for conservancy workers is proposed in such a way that workers would get protective 

gear once in two years (50% workers is planned to be covered each year). In addition, Household segregation bins (2 Nos) are 

proposed for each assessment in Dharapuram Municipality with due consideration given to projected assessments also. Household 

15-6 

segregation bins are proposed to be replaced once in 5 years. Details of costing and phasing of investment is given in Table 15-E. 

TNUIFSL


T 

The total estimated costs for the Solid Waste Management Works - Rs. 281.77 lakhs 

N 

Implementing Agency – Dharapuram Municipality / PPP 


U 

Table 15-E Project List and Budget Estimates for Solid Waste Management Works 

D 

Rs. in Lakhs 

P 

Implementing 

Agency 

2018-19 to 

2022-23 

Phasing 

2013-14 to 

2017-18 

2008-09 to 

2012-13 


cost 

I 

Municipality / 

PPP 

53.55 17.85 17.85 17.85 

Proposal identified 

during OWG 

Protective gear for 

Conservancy worker 

(Workers will get safety 

gear once in two years) 

III 

116.71 36.10 38.76 41.85 Municipality/ 

PPP 

111.51 111.51 0.00 0.00 Municipality/ 

PPP 

Final 

Report 

Procuring Separate bins 

for Waste Segregation at 

Proposal identified 

source for each 

during OWG; 

household (with private 

sponsorship) 

Contribution to Regional 


Municipal Solid Waste 

review meeting 

Management 

Total for Solid Waste Management Works 281.77 165.46 56.61 59.70 

15-7 

TNUIFSL


T 

15.1.5 Roads, Traffic and Transportation 

N 

Under this sector it is proposed to construct new roads, converting earthen road to BT roads, resurfacing of roads after completion of 

UGD Scheme. For budget cost estimates unit rates per km length are considered. The works identified and phase wise investment for 

U 

the various works are listed in Table 15-F. 

D 

The total estimated cost for the Roads, Traffic and Transportation Works - Rs. 1177.20 lakhs (Municipal project cost) 

Implementing Agency –Dharapuram Municipality 

P 

Project Manager –Municipal Engineer 

Table 15-F Project List and Budget Estimates for Roads, Traffic and Transportation Works 

I 

Rs. in Lakhs 

Phasing 

2013-14 to 

2017-18 

III 

Implementing 

Agency 

2018-19 to 

2022-23 

2008-09 to 

2012-13 


cost 


Based on 

Demand Supply 

Gap Analysis 

Constructing new 15.5 Km 

Final 

BT road by 2012, 13.4 Km 

Report 

by 2017 and 15.5 by 2022 

UIDSSMT 102.75 0.00 102.75 0.00 Municipality 

Roads works proposed for a 

length of 11.48 Km 

Resurfacing of roads after 

Implementing UGD for a 

length of 27.08 ( Cost for 

relaying works in Phase I is 

included in the UGD ) 

15-8 


Based on Rapid 

Urban 

Assessment 

TNUIFSL


T 

N 


Converting 2 Km earthen 

road into BT road 

U 


D 


P 



Urban 

Assessment 

Based on 

Demand Supply 

Gap 

Based on 

Demand Supply 

Gap Analysis 

Based on 

Demand Supply 

Gap Analysis 

Relaying BT roads after each 

third year of its 

implementation 2 Kms 

Relaying new roads after 

each third year of its 

implementation15.5 Kms 

Relaying new roads after 

each third year of its 

implementation 13.4 Kms 

I 



OWG meeting 

Traffic Signal in Pollachi 

road 

III 



OWG meeting 

Traffic Signal in Amaravathi 

bye-pass 



OWG meeting 

Junction Improvement in five 

corner junction 

Final 

Report 



OWG meeting 

Junction Improvement in 

Pookadai junction 


15-9 

1177.20 260.50 420.25 496.45 


Setting up New Bus stand 

proposals 

Total for Roads, Traffic and Transportation 

Works 

TNUIFSL


T 

15.1.6 Street Lighting 

N 

Under this sector it is proposed to manage the street lighting and energy saving mechanism through private partnership. The phase wise 

implementation details and costing is given in Table 15-G. 

U 

The total estimated cost for Street Lighting – Rs. 82.92 lakhs 

D 

Implementing Agency –Dharapuram Municipality / PPP 


P 

Table 15-G Project List and Budget Estimates for Street Lighting Works 

Rs. in Lakhs 

I 

Implementing 

Agency 

2018-19 to 

2022-23 

Phasing 

2008-09 to 2013-14 to 

2012-13 2017-18 


cost 

III 


PPP 

70.07 17..22 24.48 28.38 

Based on Demand 

Supply Gap 

Installing 313 energy saving 

CFL lamps by 2012, 445 by 

2017 and 516 by 2022 


PPP 

5.00 5.00 0.00 0.00 


Urban Assessment 

Final Installation of voltage 

Report controller& timers 


PPP 

7.85 7.85 0.00 0.00 


Urban Assessment 

Installation of electronic 

chokes in place of 

conventional copper chokes 

and 36 w tube lights 

15-10 

Total for Street Lighting Works 82.92 30.06 24.48 28.38 

TNUIFSL


T 

N 

15.2 Socio-economic Infrastructure 

Socio-Economic Infrastructure works are identified based on Demand Supply Gap analysis, during OWG meetings and from master 

U 

plan proposals. These works include improving the existing municipal school building, Parks and Playgrounds, construction of 

community hall, slum improvement works, Gasifier, renovation of slaughter house, burial ground, Tourism projects and upgrading the 

D 

daily and weekly markets. Project list and Budget estimates for Socio-Economic Infrastructure works are listed out in Table 15-H. 

P 

With increasing environmental concern, and approaching limits to fossil fuel consumption, wind power has regained interest as a 

renewable energy source. It is increasingly becoming more useful and sufficient in providing energy for many areas of the world. 

Dharapuram has the locational advantage for setting up such wind mills for generating electricity. Such a potential could be tapped 

I 

even by Dharapuram municipality with the help of private participation after undertaking Technical and Financial viability of the 

project and by approaching Tamilnadu Energy Development Agency (TEDA) and other allied government agencies. 

III 

Figure 15-2 : Site visit to existing wind mills around Dharapuram along with Chairman, Vice Chairman and Municipal Engineer 

Final 

Report 

15-11 

TNUIFSL


T 

The total estimated cost for Socio-Economic Works – Rs. 339.20 lakhs 

Implementing Agency –Dharapuram Municipality / PPP 

N 


U 

Table 15-H Project List and Budget Estimates for Socio-Economic Infrastructure works 

D 

(Rs. in lakhs) 

Phasing 

2008-09 to 2013-14 to 

2012-13 2017-18 

P 

Implementing 

Agency 

2018-19 to 

2022-23 


cost 

Health 

department 


OWG meeting 

Upgrading the government hospital by 

increasing the bed quantity from 32 to 

64 

Improving existing class rooms for 

four schools 

Water supply arrangements to NCP 

School Area 

I 



OWG meeting 


OWG meeting 

III 



PPP 

80.00 25.00 25.00 30.00 


OWG meeting 



OWG meeting 

Developing 16 approved layouts into 

Final parks and playgrounds 

Report 

Setting up Community hall near 

Travellers Bungalow land at park road 

15-12 near Anjeneyar koil 



OWG meeting 


proposals 

New Office Building 


PPP 

15.00 15.00 0.00 0.00 

Daily market improvement Scheme 

TNUIFSL


T 

N 

U 

D 

P 

Phasing 

Implementing 

Project List Remarks Estimated 2008-09 to 2013-14 to 2018-19 to Agency 

cost 2012-13 2017-18 2022-23 



Weekly Market improvement Scheme 

15.00 15.00 0.00 0.00 

proposals 

PPP 


Setting Up Gassifier crematorium 


OWG meeting 

Setting up wind mills for energy Identified during 


generation 

OWG meeting 

PPP 

Dwelling Unit Upgradation IHSDP 44.80 44.80 0.00 0.00 Municipality 

Community Toilet construction IHSDP 30.00 30.00 0.00 0.00 Municipality 

I 

IHSDP 0.40 0.40 0.00 0.00 Municipality 

Providing Street light arrangements to 

Kamarajapuram and Devendra street 

Total for Socio Economic Infrastructure Works 339.20 189.20 120.00 30.00 

III 

Final 

Report 

15.3 Consolidated Capital Investment Plan 

15-13 

15.3.1 First Phase Investment Plan (2008-09 to 2012 – 13) 

First Phase investment plan for Dharapuram is given in Table 15-I. The total Estimated Cost for all the Sectors is Rs. 4814.22 lakhs. 

The total estimated cost after considering escalation for I phase is Rs. 5574.03 lakhs which is shown in Table 15-J. 

TNUIFSL


T 

Table 15-I First Phase Capital Investment Plan for Dharapuram Municipality 

Rs. in Lakhs 

N 

Project Sector 2008-09 2009-10 2010-11 2011-12 2012-13 Investment(I Phase) 

Water Supply 0.00 143.45 351.55 0.00 0.00 495.00 

UGD 0.00 1224.00 1224.00 1224.00 0.00 3672.00 

Sanitation 2.00 0.00 0.00 0.00 0.00 2.00 

Storm Water Drainage 0.00 0.00 0.00 0.00 0.00 0.00 

Solid Waste Management 37.75 115.55 4.05 4.06 4.06 165.46 

Roads, Traffic and Transportation 0.00 8.00 0.00 116.25 136.25 260.50 

Street Lighting 8.44 11.29 3.44 3.44 3.44 30.06 

Socio-Economic Infrastructure 5.00 116.80 57.40 5.00 5.00 189.20 

U 

D 

P 

School Building 0.00 37.00 2.00 0.00 0.00 39.00 

Parks and Playgrounds 5.00 5.00 5.00 5.00 5.00 25.00 

I 

Community Hall 0.00 0.00 0.00 0.00 0.00 0.00 

Municipal Building 0.00 0.00 20.00 0.00 0.00 20.00 

III 

Daily and Weekly Makret 0.00 30.00 0.00 0.00 0.00 30.00 

Gassifier 0.00 0.00 0.00 0.00 0.00 0.00 

IHSDP 0.00 44.80 30.40 0.00 0.00 75.20 

TOTAL CAPEX 53.19 1619.09 1640.44 1352.75 148.75 4814.22 

Final 

Report 

15-14 

TNUIFSL


T 

Table 15-J First Phase Capital Investment Plan for Dharapuram Municipality (after considering escalation cost) 

N 

Rs. in Lakhs 

U 

D 

P 

Project Sector 2008-09 2009-10 2010-11 2011-12 2012-13 Investment (I Phase) 

Water Supply 0.00 158.15 406.96 0.00 0.00 565.12 

UGD 0.00 1349.46 1416.93 1487.78 0.00 4254.17 

Sanitation 2.10 0.00 0.00 0.00 0.00 2.10 






I 



III 



Daily and Weekly Market 0.00 33.08 0.00 0.00 0.00 33.08 

Gassifier 0.00 0.00 0.00 0.00 0.00 0.00 

IHSDP 0.00 49.39 35.19 0.00 0.00 84.58 

TOTAL CAPEX 55.85 1785.05 1899.01 1644.27 189.85 5574.03 

Final 

Report 

15-15 

TNUIFSL


T 

15.3.2 Second Phase Investment Plan (2013-14 to 2017 – 18) 

N 

Second Phase investment plan for Dharapuram is given in Table 15-K. The total Estimated Cost for all the Sectors is Rs. 1032.09 

lakhs. The total estimated cost after considering escalation for I phase is Rs. 1554.76 lakhs which is shown in Table 15-L. 

U 

Table 15-K Second Phase Capital Investment Plan for Dharapuram Municipality 

D 

Rs. in Lakhs 

P 

Project Sector 2013-14 2014-15 2015-16 2016-17 2017-18 Investment (II Phase) 

Water Supply 0.00 0.00 0.00 0.00 20.00 20.00 

I UGD 0.00 0.00 0.00 0.00 0.00 0.00 

Sanitation 5.00 5.00 5.00 0.00 0.00 15.00 






Final School Building 0.00 0.00 0.00 0.00 0.00 0.00 

Report 


III 



15-16 


Gassifier 45.00 0.00 0.00 0.00 0.00 45.00 

IHSDP 0.00 0.00 0.00 0.00 0.00 0.00 

TOTAL CAPEX 173.31 144.61 124.08 328.57 261.53 1032.09 

TNUIFSL


T 

N 

Table 15-L Second Phase Capital Investment Plan for Dharapuram Municipality (after considering escalation cost) 

U 

Rs. in Lakhs 

D 

P 

I 

Project Sector 2013-14 2014-15 2015-16 2016-17 2017-18 Investment (II Phase) 

Water Supply 0.00 0.00 0.00 0.00 32.58 32.58 

UGD 0.00 0.00 0.00 0.00 0.00 0.00 

Sanitation 6.70 7.04 7.39 0.00 0.00 21.12 







III 





Final 

Report 

Gassifier 60.30 0.00 0.00 0.00 0.00 60.30 

IHSDP 0.00 0.00 0.00 0.00 0.00 0.00 

TOTAL CAPEX 232.25 203.48 183.32 509.71 426.00 1554.76 

15-17 

TNUIFSL


T 

15.3.3 Third Phase Investment Plan (2018-19 to 2022 – 23) 

N 

Third Phase investment plan for Dharapuram is given in Table 15-M. The total Estimated Cost for all the Sectors is Rs. 1519.68 

lakhs. The total estimated cost after considering escalation for III phase is Rs. 2880.78 lakhs which is shown in Table 15-N. 

U 

Table 15-M Third Phase Capital Investment Plan for Dharapuram Municipality 

Rs. in Lakhs 

D 

Project Sector 2018-19 2019-20 2020-21 2021-22 2022-23 Investment (III Phase) 

P 

Water Supply 0.00 0.00 0.00 0.00 20.00 20.00 

UGD 0.00 0.00 0.00 0.00 0.00 0.00 

Sanitation 0.00 0.00 0.00 0.00 0.00 0.00 


I 



III 




Final 

Report 




15-18 


Gassifier 0.00 0.00 0.00 0.00 0.00 0.00 

IHSDP 0.00 0.00 0.00 0.00 0.00 0.00 

TOTAL CAPEX 304.83 295.59 255.41 334.64 329.20 1519.68 

TNUIFSL


T 

Table 15-N Third Phase Capital Investment Plan for Dharapuram Municipality (after considering escalation cost) 

N 

Rs. in Lakhs 

U 

D 

P 

Project Sector 2018-19 2019-20 2020-21 2021-22 2022-23 Investment (III Phase) 

Water Supply 0.00 0.00 0.00 0.00 41.58 41.58 

UGD 0.00 0.00 0.00 0.00 0.00 0.00 

Sanitation 0.00 0.00 0.00 0.00 0.00 0.00 






I 



III 




Gassifier 0.00 0.00 0.00 0.00 0.00 0.00 

IHSDP 0.00 0.00 0.00 0.00 0.00 0.00 

TOTAL CAPEX 521.37 530.84 481.62 662.56 684.39 2880.78 

Final 

Report 

15-19 

TNUIFSL


T 

N 

16 RISK RISK ANALYSIS 

ANALYSIS 

16 

16 

U 

D 

P 

I 

III 

Final 

Report 

16-1 

TNUIFSL

CHAPTER 16 : RISK ANALYSIS OF IDENTIFIED NEW PROJECTS FOR DHARAPURAM 

CHAPTER 16 : RISK ANALYSIS OF IDENTIFIED NEW PROJECTS 

DHARAPURAM MUNICIPALITY 

Project list 

Land Acquisition / 

Availability (LA) 

Manpower 

availability 

(Skilled) 

Environmental 

clearance 

Financial 

availability with the 

local body 

R & R risk 

ULBs ability to 

fund any cost 

overrun 

Water Supply 

Replacement of Distribution Line; 4" 

PVC 2000m length 

2L liter capacity 40 fee head OHT at 

Available Available Not required Constraint NA Minimal Currently Stable NA 

Ellish Nagar 

Additional Pumping Main - 12 AC 


pipe 

Fliter House - Slow Sand Filter - 2 


Bed 

Infiltration well to collection well pipe 


line laying - 300mm dia; 2 m depth LA may be 

90 x 2010 

required Available Not required Constraint NA Minimal Currently Stable NA 

Providing infiltration well - 4.5 M dia LA may be 

and 6 M depth 


Providing feeder line 3000m PVC LA may be 

Pipe - Rs. 150 

Laying distribution network for 24.7 

Km by 2012-13, 13.4 Km by 2017-18 


and 15.5 Km by 2022-23 

Setting up 3 lakh capacity OHT by 

2017-18 and 6 lakh capacity OHT by 

NA Available Not required Constraint NA Minimal Currently Stable NA 

2022-23 Available Available Not required Constraint NA Minimal Currently Stable NA 

Sewerage and Sanitation 

UGD for Dharapuram Municipality 

LA required 

Depende 

nt on 

TWAD Required 

Severe 

Constraint NA 

Political stability 

Natural barriers 

Very much 

minimal Currently stable NA 

Maintenance for six toilets 

Construction of three new toilets at 

Kamarajapuram, Chithravuthan 

palayam and Udurnalai Kottapalli 


Palayam. Available Available Not required Constraint NA Minimal Currently Stable NA 

Time delay 

Financial 

Constraint to meet 

O & M Costs 

Multiplicity of 

organisation 

Public Litigation 

Depends on fund 

availability 


Yes No No 

availability 


Yes No No 

availability 


Yes No No 

availability Yes No No 


availability 


Yes No No 

availability 


Yes No No 







availability, 

approval and 

sanction Constraint 

Yes 

(TWAD) Possible 




availability Yes No No

Project list 




Manpower 

availability 

(Skilled) 

Environmental 

clearance 

Financial 


local body 

R & R risk 


fund any cost 

overrun 


Constructing Storm Water Drainage 

lines proposed for a length of 22.71 

Kms 

Constructing additional Storm water 

Drainage lines for 97.48 Km 

(Considering only 50% of the 

demand for the phase year 2017-18 


to 2022-23) i.e 48.74 Km NA Available Not required Constraint NA Minimal Currently Stable NA 

Roads 

Constructing new 15.5 Km BT road 

by 2012-13, 13.4 Km by 2017-18 and 

15.5 by 2022-23 

Roads works proposed for a length 

LA may be 


of 11.48 Km 

Resurfacing of roads after 

Implementing UGD for a length of 

27.08 (BT roads - 38.56 Km 

deducted from 11.48 Km works 


proposed under UIDSSMT) Available Available Not required Constraint NA Minimal Currently Stable NA 

Converting 2 Km earthen road into 

BT road 

Relaying BT roads after each third 

year of its implementation 2 Kms 


NA Available Not required Constraint NA Minimal Currently stable NA 



Time delay 

Financial 


O & M Costs 


organisation 







availability 


Yes No Possible 



availability & 

Completion of 

UGD 


availability & 

Completion of 

Yes No No 

UGD 


availability and 

Yes No No 

approval Yes No No

Project list 

Relaying new roads after each third 

year of its implementation15.5 Kms 

Relaying new roads after each third 

year of its implementation 13.4 Kms 

Traffic and Transportation 




Manpower 

availability 

(Skilled) 

Environmental 

clearance 

Financial 


local body 

R & R risk 


fund any cost 

overrun 



Traffic Signal in Pollachi road 

Traffic Signal in Amaravathi bye- 

NA NA Not required NA NA Minimal Currently Stable NA 

pass 

Junction Improvement in five corner 

NA NA Not required NA NA Minimal Currently Stable NA 

junction 

Junction Improvement in Pookadai 

Available NA Not required NA NA Minimal Currently Stable NA 

junction Available NA Not required NA NA Minimal Currently Stable NA 


Solid Waste Management 

Protective gear for Conservancy 

worker (Workers will get safety gear 

once in two years) NA NA Not required 

Procuring Separate bins for Waste 

Segregation at source for each 

household (with private sponsorship) 


NA NA Not required 



Not a 

Constraint NA Minimal Currently stable NA 

Not a 

Constraint NA Minimal Currently stable NA 

Time delay 

Financial 


O & M Costs 


organisation 




approval Yes No No 



approval Yes No No 


availability 


NA No No 

availability 


NA No No 

availability 


NA No No 

availability 


NA No No 




approval NA No No 



approval NA No No

Project list 

Street Lighting and Energy 

saving Mechanism 

Installing 313 energy saving CFL 

lamps by 2012-13, 445 by 2017-18 

and 516 by 2022-23 

Sector - Socio-Economic 





Manpower 

availability 

(Skilled) 

Environmental 

clearance 

Financial 


local body 

R & R risk 


fund any cost 

overrun 




Time delay 

Financial 


O & M Costs 


organisation 




Upgrading the government hospital 

by increasing the bed quantity from 

32 to 64 

Available NA Not required NA NA NA Currently Stable NA NA NA No No 

Improving existing class rooms for 


four schools Available Available Not requiredNot a Constraint NA Minimal Currently Stable NA availability Yes No No 

Water supply arrangements to NCP 


School Area NA Available Not required Constraint NA Minimal Currently Stable NA availability 


Yes No No 

Developing 16 approved layouts into 


parks and playgrounds 

response from 

Setting up Community hall near 

Available Available Not required Constraint NA Minimal Currently Stable NA private sector Yes No No 

Travellers Bungalow land at park 


road near Anjeneyar koil Available Available Not required Constraint NA Minimal Currently Stable NA availability Yes No No 









Weekly Market improvement 


Scheme Available Available Not required Constraint NA Minimal Currently Stable NA availability Yes No No 


Available Available Required Constraint NA Minimal Currently Stable NA 



Setting up wind mills for energy 

generation 

Available NA Required NA NA NA Currently Stable NA NA 


NA No No 

Dwelling Unit Upgradation Available Available Not required Constraint NA Minimal Currently Stable NA availability 


Yes No No 

Community Toilet construction 

Providing Street light arrangements 

Available Available Not required Constraint NA Minimal Currently Stable NA availability Yes No No 

to Kamarajapuram and Devendra 


street NA Available Not required Constraint NA Minimal Currently Stable NA availability Yes No No 

NA - Not applicable

17 

17 

17 ASSET ASSET MANAGEMENT MANAGEMENT PLA PLAN PLA 

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Asset Management Plan involves maintenance management for preventive and 

predictive maintenance, equipment recording and tracking, replacement parts 

inventory, and maintenance labor scheduling. The goal of asset management is to 

optimize asset use and manage all maintenance efforts involved in making assets as 

reliable, accurate, and efficient as possible. Asset management Plan is the plan 

developed for one or more physical assets within the municipality that combines multi 

disciplinary management techniques including technical and financial over the life 

cycle of the asset to a specified level of service in a most cost effective manner. The 

key aspects of asset management plan therefore involve asset inventory, information 

of assets owned by the municipality and appropriate strategy to manage the assets and 

increase the productivity of the same. The asset management plan is therefore critical 

for maintaining, upgrading and operating physical assets in a cost effective manner. 

Dharapuram municipality has several assets that require regular maintenance for 

sustenance of reasonable service delivery levels. Given the high impact of the O&M 

expenses on the finances of the municipality, it is prudent to undertake a proper 

review of the assets under its control. This would aid in identifying the revenue 

generating assets as well as the ones that are causing a drain on municipal revenues. A 

comprehensive asset management plan aids in achieving the same. 

17.1 List of Assets: 

The assets of Dharapuram municipality can be classified as assets relating to basic 

physical infrastructure such as water supply, roads, storm water drains, street lights, 

light and heavy vehicles etc and those relating to social infrastructure which include 

shops, markets, parks, bus stand commercial complexes, slaughter house, maternity 

centres, burial grounds etc. Among basic physical infrastructure only water supply 

services can be considered revenue generating as the municipality is able to collect 

taxes, connection charges, initial deposit charges and metering/tap rate charges and 

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hence expenses are met mainly through dedicated water supply fund set up for the 

purpose. With regard to social infrastructure, only markets, commercial complexes 

and shops, bus stand, toilets (pay and use) etc are revenue generating and hence can be 

considered remunerative and others such as burial grounds, community hall, slaughter 

house, parks, public toilets, maternity centre etc; are not revenue generating or 

revenue generation is extremely nominal and may not be self sustaining. Some of the 

social infrastructure is required to be provided by the municipality as the functions 

remain obligatory functions of the municipality and also help to fund the non 

remunerative activities of the municipality. These are also required to maintain the 

cleanliness and sanitation of the city. 

The various physical and social infrastructure of the municipality are listed below: 

Table 17-A : Details of various social & physical infrastructure assets 

Particulars Unit Details 

REMUNERATIVE ASSETS – SOCIAL INFRASTRUCTURE 

Bus Stand 1 

Commercial Complexes/shops 

Markets-Within Local Body 

Limits-Daily 

Markets-Within Local Body 

Limits-Weekly 

Grade B bus stand near Bye pass road. It 

houses 24 bus bays, shops of municipality, 

Vegetarian hotel (building of municipality) 

+waiting shed. 

Area- 3 acres 

21 shops in weekly market, 86 shops in bus 

stand, 18 shops in the commercial complex 

, 10shops located in chinna kadai veedhi 

side & in daily market there are 22 shops 

1 Old Bus stand @ 1.36 acres 

1 6.98 acres @ Solai Kadai Veedhi 

Pay and Use Latrines 6 No of seats 57 

Slaughterhouse 1 

1519 sq meters @ Located at Udumalai 

Road

Community Hall Nil 

Ulzhlavar Santhey 1 

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SOCIAL INFRASTRUCTURE -NON REMUNERATIVE INFRASTRUCTURE 

School Buildings 6 

Maternity Centres 2 

Hospitals & Dispensary 1 

Noon Meal Centres 6 

Parks & Play Grounds 3 

Ward Office 1 

Burial Ground 4 

PHYSICAL INFRASTRUCTURE ASSETS 

Water supply 

Overhead Tank 8 

Length of Distribution lines 49.02 Km 

Pumping main 6.92 km 

Storm water drains 13.121 Km 

Roads 58.2 

3 elementary schools, 2 middle schools and 

one Higher secondary school 

Ayurvedic dispensary located in church 

road 

1 -Theevuthidal road, 1 Solaikadai veedhi 

& 1 Housing unit park 

1 No (1.29 acres)- Palayapalam area, 2 (1.6 

acres) Palya Kovai Road, 3 (1.3 acres) 

Thirupur Road & 4- (3.18 acres )alangein 

Road 

1. Old Bus stand -10 lakhs 2. Old Bus 

stands 5.86 lakhs 3.Anna Nagar 2.50 lakhs 

4. Poolavadi Road 3 lakhs 5.Upputhurai 

Palayam -3 lakhs 6.Housing Unit -3 lakhs 

& TWAD Cauvery Water Supply OHTs 

CC road - 17.37 Km 

BT Road - 38.56 Km 

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Street Lights 2144 


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WBM Road - 0.35 Km 

Eaethen/Gravel Road - 1.92 Km 

Compost Yard 10.18 acres Nanjayampalayam 

Vehicles 5 


Lorry - 3 

Dumper placer - 2 

17.2 Operations and Maintenance 

The revenue generation and the operations and maintenance activities currently being 

followed and suggestions for comprehensive Asset Management including ways and 

means to meet the expenses involved & make it a self sustaining for various assets 

are listed below:- 

17.2.1 O&M of social infrastructure assets 

Asset 

Daily and 

weekly 

Market 

Average 

Annual 

income 

Rs. 11.18 

Lakhs 

Table 17-B: O&M and Revenue generation 

Current 

O&M 

practice 

Adhoc basis. 

Recommendations 

-Periodic inspection and 

maintenance is required. 

- About 2-3 % of the income 

earned from this asset can be 

invested annually on maintaining 

and upgrading the facilities. 

-Private party to whom the 

Area/facilities are leased can meet 

the expenses related to the 

maintenance of the asset partially. 

-Municipality to clear 

unauthorized encroachments to

Shops/Comm 

ercial 

Complex 

Slaughter 

House 

Parks & 

Playgrounds 

TNUIFSL 

Rs.20.34 

Lakhs 

Rs. 

0.12Lakhs 

Nil 

Bus Stand 11.06 


use additional space for revenue 

generation 

-Additional Income generating 

activities such as pay & use toilets 

and parking lots if found viable 

can be considered 

Ad hoc basis Same as above 

Ad hoc basis 

Improvement 

scheme under 

Part II 

scheme is 

currently 

underway at 

a cost of Rs.9 

lakhs 

Ad Hoc basis 

Can be maintained jointly with 

private sector (companies/clubs 

etc) or maintained exclusively by 

the private sector on sponsorship 

basis 

-Periodic annual maintenance is 

required 

-Additional Income generating 

activities such as pay & use 

toilets, advertisements/hoarding 

and paid parking lots if found 

viable can be undertaken 

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Public 

Toilets/Pay & 

Use 

Burial 

Ground 

School 

Building 

Maternity 

Centre 

TNUIFSL 

Rs.11.47 

lakhs 

NIL 

Ad hoc basis 

Ad hoc basis 

Improvement 

of Thirupur 

burial 

grounds at a 

cost of 

Rs.10.5 lakhs 

under Part II 

scheme is 

undertaken 

NIL Ad hoc basis 

NIL 

Improvement 

work 

currently 

being 

undertaken at 

a cost of Rs.7 

lakhs under 

Part-II 

Scheme 


Can explore the possibility of 

converting some of the public 

toilets to pay and use in some 

commercial areas and some of 

maintenance can be handed over 

to SHGs with only major 

maintenance/new work to be 

taken up by the ULB 

Periodic annual maintenance can 

sustain the quality of the asset 

Gassifier funded through 

government schemes can reduce 

the burden of maintaining existing 

burial grounds 

O & M can be met through funds 

from elementary education fund 

Source: Analysis based on Information provided by Dharapuram Municipality

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17.2.2 O&M for Physical infrastructure assets 

Operation and Maintenance of the assets related to Physical and socio-economic 

infrastructure is divided under two heads; 

• To maintain the existing assets for the next five years and 

• To maintain the assets proposed to be created under various capital 

works proposed. 

Since the O & M of the existing assets related to Socio- Economic Infrastructure has 

already been assessed in the above sections of this chapter, the O & M of the existing 

physical Infrastructure assests and the proposed O & M for the capital works 

identified is broadly discussed in this section. Key growth rates assumed for 

forecasting O & M of the existing assets and of the capital works proposed are 

tabulated below: 

Table 17-C Key assumptions for forecasting O & M for the existing and proposed 

assets 

Description 

FOR EXISTING ASSETS 

Water Supply 

Current level Assumption 

Operating Expenses 52% Assuming 3% increased rate 

Repairs & Maintenance 

expense for Water Supply Works 

-46% Assuming 6% increased rate 


Repairs and Maintenance 

for heavy vehicles 

40% 

Assuming 5 % increased rate in heavy 

vehicle exp 


Maintenance Expense 

for Street Lights 

-100% Assuming 10% growth rate 


Street Lights 

For capital works 

21% Assuming 5% growth rate 

Water Supply NA 6% of the project cost 

Sewerage & Sanitation NA 4% of the project cost 

Roads and Traffic Management NA 3% of the project cost 

Storm Water Drainage NA 2% of the project cost 

Solid Waste Management NA 10% of the project cost 

Street Lighting NA 5% of the project cost 

Slum up gradation NA 1% of the project cost 

Others NA 2% of the project cost 

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17.2.2.1 O & M for Existing Physical Infrastructure Assets 

Based on the aforesaid assumptions, the operation and maintenance expenses for 

existing physical infrastructure assets have been worked out based on the past trends 

and based on the availability of the data / information available with the Municipality. 

Table 17-D O & M for existing physical Infrastructure assets (Short – term) 

Rs in Lakhs

17.2.2.2 O & M for proposed capital works 

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Based on the aforesaid standards / assumptions, the operation and maintenance 

expenses for proposed capital works for the first phase have been worked out and are 

listed below: 

Table 17-E O & M for proposed capital works 

Rs. in lakhs 

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Dharapuram Rs.in Lakhs 

Sectors - Physical 


Water Supply 

CAGR 

(past 

expenses 

2003-03 to 

2006-2007) 2008-2009 

2009-2010 

Table 17 D O & M for existing physical Infrastructure assets 

2010-2011 

2011-2012 

Operating Expenses 52% 50.68 52.20 53.76 55.38 57.04 58.75 60.51 62.33 64.19 66.12 68.10 70.15 72.25 74.42 76.65 

Repairs & Maintenance expense 

for Water Supply Works -46% 31.47 33.36 35.36 37.48 39.73 42.12 44.64 47.32 50.16 53.17 56.36 59.74 63.33 67.13 71.15 


Repairs and Maintenance for 

heavy vehicles 40% 6.56 6.89 7.24 7.60 7.98 8.38 8.79 9.23 9.70 10.18 10.69 11.22 11.79 12.37 12.99 

Safety and Health related 

expenditure 3.57 3.75 3.94 4.13 4.34 4.56 4.78 5.02 5.27 5.54 5.82 6.11 6.41 6.73 7.07 


Maintenance Expense for Street 

Lights -100% 8.80 9.68 10.65 11.71 12.88 14.17 15.59 17.15 18.86 20.75 22.82 25.11 27.62 30.38 33.42 

Power Charges for Street Lights 21% 30.45 31.97 33.57 35.25 37.01 38.86 40.81 42.85 44.99 47.24 49.60 52.08 54.68 57.42 60.29 

2012-2013 

2013-2014 

2014-2015 

2015-2016 

2016-2017 

2017-2018 

2018-2019 

2019-2020 

2020-2021 

2021-2022 

2022-2023

Table 17 E O & M for proposed capital works 

For Dharapuram Investment Requirements 

Rs.in Lakhs 

Project Sector 

Total 

Investment 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 

Water Supply 639.27 0.00 158.15 406.96 0.00 0.00 0.00 0.00 0.00 0.00 32.58 0.00 0.00 0.00 0.00 41.58 

UGD 4254.17 0.00 1349.46 1416.93 1487.78 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Sanitation 23.22 2.10 0.00 0.00 0.00 0.00 6.70 7.04 7.39 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Storm Water Drainage 2229.53 0.00 0.00 0.00 0.00 0.00 100.71 105.74 111.03 116.58 122.41 302.78 317.92 333.82 350.51 368.03 


without bins and gear 122.94 0.00 122.94 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Roads, Traffic and Transportation1928.24 0.00 8.82 0.00 141.30 173.89 0.00 70.36 43.51 293.08 247.39 125.31 184.46 117.87 280.58 241.68 

Street Lighting 123.77 8.87 12.45 3.99 4.18 4.39 6.56 6.89 7.23 7.59 7.97 9.71 10.19 10.70 11.24 11.80 

Socio-Economic Infrastructure 443.63 5.25 128.77 66.45 6.08 6.38 67.00 7.04 7.39 85.32 8.14 17.10 8.98 9.43 9.90 10.39 

TOTAL CAPEX 9764.78 16.22 1780.59 1894.33 1639.34 184.67 180.97 197.06 176.55 502.58 418.50 454.90 521.55 471.82 652.22 673.48 

O & M Cost for New Infrastructure Works 

Sector - Physical 


Total O&M 

2008- 

09 

2009-10 2010-11 2011-12 2012-13 2013-14 

O & M Expenses 

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 

Water Supply 602.12 0.00 0.00 9.49 34.48 36.54 38.74 41.06 43.53 46.14 48.91 53.79 57.02 60.44 64.07 67.91 

UGD 2294.93 170.17 176.97 184.05 191.41 199.07 207.03 215.32 223.93 232.89 242.20 251.89 

Sanitation 9.30 0.00 0.08 0.09 0.09 0.09 0.10 0.37 0.67 0.99 1.03 1.07 1.11 1.16 1.20 1.25 

Storm Water Drainage 146.67 0.00 0.00 0.00 0.00 0.00 0.00 2.01 4.17 6.47 8.93 11.56 17.85 24.56 31.73 39.38 


without bins and gear 

301.47 0.00 

0.00 12.29 13.52 14.88 16.36 18.00 19.80 21.78 23.96 26.35 28.99 31.89 35.08 38.58 



291.70 0.00 

0.00 0.26 0.27 4.52 9.87 10.17 12.58 14.27 23.49 31.61 36.32 42.94 47.77 57.62 

Street Lighting 48.61 0.00 0.44 1.09 1.34 1.62 1.92 2.34 2.80 3.31 3.85 4.44 5.15 5.92 6.75 7.65 



42.68 0.00 

0.05 1.34 2.02 2.10 2.18 2.88 2.98 3.08 3.96 4.08 4.30 4.43 4.57 4.71 

Total O & M expenditure 3737.49 0.00 0.58 24.56 51.72 229.92 246.15 260.89 277.94 295.10 321.16 348.23 374.66 404.23 433.36 468.99

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17.3 Asset Management Plan- 

Recommendations 

The following are some of the suggestions with regard to formulation and implementation 

of a comprehensive Asset Management Plan:- 

17.3.1 Asset Register 

A comprehensive Asset register needs to be maintained containing details of the list of assets, 

year and cost of acquisition, particulars such as the location, size of the area/building, 

ownership records and all supporting documents required for the same. These details are 

required for assessing the condition of the asset. The reform programme under TNUDP has 

initiated the process of computerizing and digitalizing the asset inventory for all municipalities 

in Tamil Nadu. Computerization of asset register is required with focus on proper designing, 

testing, installing a database management system for municipal assets. Data thus compiled 

would need to be classified on the basis of sector specific infrastructure facilities, land and 

properties etc 

17.3.2 Asset Value and Life Cycle Management 

The Municipality needs to determine the value of various assets in regular intervals. As all 

assets have a limited life expectancy, concerted efforts need to be undertaken by the 

municipality on regular basis before investing further in a new asset or up gradation of the 

existing assets. In case of an asset ( service) that is handed over to a private contractor for 

O&M, periodic review and inspection needs to be made to prevent misuse and damage to the 

assets.

17.3.3 Sustainability 

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Sustainable management of assets is an important element of asset management plan. 

Sustainable development has been defined as “meeting the needs of present generation 

without compromising the ability of future generations to meet their own needs”. A long term 

financial plan to provide necessary resources to operate, rehabilitate and ultimately replace the 

asset at the optimal time to achieve lowest life cycle cost is required. Preventive and 

operational maintenance at regular intervals can prevent higher cost associated with the full 

replacement of the asset. Such a plan would ensure that the current users pay a fair share for 

the service they receive so the future users do not have the burden to pay a higher cost for the 

same level of the service. Sustainable management calls for a contribution from the users to 

meet partially or fully the O&M cost associated with the utilization of assets. Hence user 

charges and fees is critical for a sustainable and a successful asset management programme 

17.3.4 Integration of Technical and Financial Plans 

An integrated plan combining technical aspects ( to minimize life cycle cost & reduce the risk 

level) and financial aspects (Financial plan) are required to quantify the level of service and 

the cost associated with the same. The technical and financial plans need to be flexible enough 

to suit the changing requirements of the public. 

17.3.5 Condition Assessment Survey (CAS) 

The municipality could look to undertake CAS for various assets owned by the ULB, which 

could bring to light the deficiencies in a system or a component, the extent of defects, 

estimated cost of repairs and the prioritizing the work to be undertaken. This systematic 

review could enhance the life of the asset and minimize huge capital outlay on account of 

delay in taking remedial actions. 

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17.3.6 Risk Assessment 

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Asset management needs to take into account various risk factors such as financials, 

environmental, regulatory, legal, public health and safety. The risk assessment has been 

elaborated in the Chapter 16 of this report. 

17.3.7 Monitoring and Evaluation 

To optimize an asset management plan, performance of the assets and rehabilitation strategies 

should be monitored regularly, and adjustments made at the appropriate stage in the asset life 

cycle to achieve an acceptable balance between cost and the performance (Level of service). It 

is also imperative to monitor and take damage control measures when the municipality takes 

up any development works to prevent damage to the other assets of the municipality. 

Prioritizing the works to be undertaken can prevent unnecessary maintenance and capital cost. 

17.3.8 Budgeting 

A regular budgeting exercise regarding the possible O&M cost for various assets needs to be 

undertaken by the municipality. There should be a clear link to the financials plans and the 

budgeting exercise undertaken by the municipality. An Asset Management Plan should 

incorporate expenses relating to maintenance, renewal and augmentation of the asset of the 

municipality. 

17.3.9 Training in Database management 

All the above requires proper training to the concerned staff. Training would involve various 

issues such as methods of simplified updation of data, methods of monitoring and follow up 

and training in issues relating to infrastructure facilities management, land use, litigation, 

encroachment etc

18 

18 

18 REFORMS REFORMS AND AND RESOURCE 

RESOURCE 

MOBILIZATION 

MOBILIZATION 

18.1 Overview 

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Urban reforms are the main focus of good governance and service delivery to the 

inhabitants of the urban area. Several initiatives and reforms have been taken up at the 

national level and state level. These reforms need to be replicated and implemented by 

the ULBs completely in a time bound manner. The State Government and the Urban 

Local Bodies have executed a Memorandum of Agreement with the Government of 

India, committing to implement the reform programs. 

Under the Urban Local Bodies level, reforms committed viz., E-Governance, shift to 

Accrual based double entry accounting, property tax (85% coverage), property tax 

collection efficiency (90%). 100% cost recovery for water supply and solid waste 

services have been committed to be achieved in the year 2012. Internal earmarking of 

funds for services to Urban Poor has been done and provision of Basic services to 

urban poor has been committed to be achieved in the year 2012. Encouragement of 

Public Private Partnership to be carried on through outsourcing in solid waste 

management, street light maintenance, pumping station maintenance, STP 

maintenance and hiring of vehicles. Many of the suggested reforms have been 

implemented to some extent though at the ULB level further refinement and 

qualitative implementation needs to be carried out. Besides these mandatory reforms 

the ULBs have initiated Institutional Strengthening, Capacity building for 

administrative and elected representatives under various reform programs of TNUDP 

and State Government. 

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18.2 Reform measures of Dharapuram 


The reform measures to be undertaken by the municipality can be broadly classified 

into 3 broad heads: 

Financial and Accounting Reforms 

Institutional reforms 

Reforms in physical infrastructure 

18.2.1 Financial & Accounting reforms 

18.2.1.1 Financial Reforms 

As a part of financial reforms, reforms in tax and non tax collection needs to be taken 

up for improving the financial position of the municipality. The reform process of tax 

collection should be comprehensive and should focus on structural and systematic 

changes so that the increase in efficiency is sustained. This is vital for achieving self- 

sufficiency and improving its financial health to make it possible for the ULB to 

undertake various projects for the welfare of the people. 

The revenue department of Dharapuram Municipality is responsible for collection of 

various taxes and charges from its citizens including raising the demand for key 

revenue items like property tax, profession tax, water charges etc., follow up on 

outstanding payment and prepare the Demand Collection Balance (DCB) statement. 

There is 1 revenue inspector, 6 revenue assistants and 1 office assistant for revenue 

collection and all the posts are filled up. 

One of the most important yard stick for measuring the robustness of tax collection is 

collection efficiency. The Collection Efficiency of important revenue sources of 

Dharapuram Municipality for the last 3 years is given as under:

TNUIFSL 


Table 18-A: Collection Efficiency of key revenue sources 

Particulars 2004-05 2005-06 2006-07 

I. PROPERTY TAX 

Arrears 62% 49% 100% 

Current 96% 92% 100% 

Total 93% 88% 100% 

II. PROFESSIONAL TAX 

Arrears 77% 52% 100% 

Current 96% 95% 100% 

Total 95% 93% 100% 

III. WATER CHARGES 

Arrears 66% 54% 100% 

Current 91% 88% 100% 

Total 86% 84% 100% 

Source: DCB of Dharapuram Municipality 

Particulars 

Table 18-B: Efficiency parameters of key taxes and water charges 

Current 

Collection 

efficiency 

(2005-06) 

Arrears 

Collection 

efficiency 

(2005-06) 

CAGR in no of 

assessments (%) 

for the past 6 

years. 

CAGR in 

the terms of 

value (%) 

Last 5 

Years 

Property taxes 92% 49% 0.67% 4.09% 

Profession 

Taxes 

95% 52% N.A 12.57% 

Water Charges 88% 54% 2.63% 2.03% 

Source: Data Analysis of Dharapuram Municipality 

18.2.1.1.1 Property taxes: 

Property taxes are one of the important sources of revenue for Dharapuram 

Municipality accounting for more than 80% of the tax income of the municipality The 

current and arrear collection efficiency of property taxes stands at 92% and 49% 

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respectively as on 31.03.2006. Though the current collection efficiency appears 

satisfactory at over 90%, the CAGR of no of assessments (0.74%) and in value terms 

(5%) reveals in stagnancy in identifying under assessed and un assessed properties. 

This needs to be addressed on priority basis. Hence there is an urgent to need to 

identify more assessments and also further revise property taxes to generate sufficient 

revenue to fund its development programs. 

Robust growth in Taxes is required to meet the fund the projects. Proper 

implementation of reforms is a pre-requisite for healthy revenue generation. In the 

light of the revision in property taxes announced by the State government and based 

on our discussions with the municipality, a 25% growth in property taxes has been 

envisaged every 5 year period starting from 2008-09. Healthy growth in number of 

assessments, updated tax demand, periodic revisions and high collection efficiency is 

important for strong growth in property tax collection. 

Some of the possible means of enhancing the property tax collection are given below: 

Table 18-C: Reforms in property Taxes 

Suggested Property taxes Reforms 

Mandatory Implementation of Revision of Property Tax once in every five years is 

required. 

Digitization of the property maps through GIS to identify un -assessed and under assessed 

properties is required. GIS based mapping system is advisable for each property identified 

on GIS (Whether it is residential, commercial or industrial).The above database can be 

crossed checked with the data from various governmental authorities/sources such as 

Income Tax, Profession Tax, and Electricity Bills etc. Such database also would help the 

ULB to verify the utility of the property against the purpose for which permission was 

taken. A cost benefit study should be conducted to evaluate the possibility of the 

introduction of remote sensing/GIS. 

Computerization of records of encroached properties, action taken, list of encroachers 

through MIS would enable linking the same with GIS. 

Making the payment of property tax more convenient for the assessee through the use of 

various alternative modes can be explored:

o Through banks 

o Through online payment 

o Through ECS/ EFT 

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Suggested Property taxes Reforms 


Using special schemes and incentives to encourage people to make the payment of 

property tax before the lapse of the due date can be considered. Rebates can be offered for 

advance payment of property taxes 

Collection of arrears through innovative means such as community participation and fast 

track litigation methods need to be attempted. Law enforcement powers should be given to 

the municipality to compel payment of taxes and other charges levied by them. 

Improve enforcement against defaulters by modifying byelaws with adequate recourse to 

ULB within the current framework for enforcing disconnections on defaulters. 

PSP involvement in computerization, billing, collections and survey of properties can be 

explored. 

Rewarding collection efforts of the employees to encourage more aggressive collection. 

List of consistent major defaulters can be published in the notice board of the municipality 

office. This can be resorted in the case of extreme default. 

Suitable legislation at state level to ensure that in the case of disputed property tax the 

assessee should first pay the tax under protest and then can take the necessary legal 

recourse as done in customs/excise duties can be considered. 

Late payment of property tax after the grace period can be penalized with nominal charges 

as being done in the case of insurance payments etc 

18.2.1.2 Accounting reforms 

The administrative section is responsible for maintenance of all income and 

expenditure statements, payment, preparation and implementation of budget. The 

system of accounting has undergone a transformation from cash based accounting 

system to accrual accounting system in line with the State government’s reforms 

initiative. 

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Table 18-D: Accounting Reforms 

Suggested Accounting Reforms 


As on date Dharapuram municipality has audited accounts only upto FY 2005-06. 

Therefore there is an urgent need for the ULB to update it accounts to the latest year to 

provide a complete, updated details on the financial health of the ULB. Hence accounts 

needs to be finalized within the year itself instead of couple of years later as seen currently. 

This would enable the ULB to identify the revenue gaps, financial commitments and costs 

of various services and take remedial measures to regain its financial health. 

Zero based budgeting would need to be carried out for continual monitoring of budgets 

and cash flow management. 

As a part of a larger accounting reform process at the State level, it is suggested that the 

ULB can include disclosures in its Annual Accounts and other published documents 

details on cost recovery of essential services through direct “user charges”, indirect “taxes” 

and Environmental status report. This information can be made available to the public 

through various channels (Such as hosted the details on the website, distribution of 

pamphlets, Involving SHGs/NGOs/Woman Groups for spreading awareness, Public 

announcements etc) in simple effective language to facilitate substantial/full recovery of 

O&M costs of the various essential services such as Water Supply, Solid Waste 

Management, etc. The awareness creation at various levels will increase the “willingness 

to pay” actions of the citizens of the area. 

The audited annual accounts can contain ULB Discussion and Analysis Report (UDAR) 

providing a holistic view on the financial health, quality of service level rendered, 

initiatives taken/proposed by the ULB to improve the city, areas of concern, targets and 

action plan to achieve the same etc. This report along with the Urban Performance 

indicators can provide a qualitative edge to the accounting and financial reporting system 

that can go a long way towards achieving high levels transparency, accountability and easy 

and smoother facilitation of the reform process required. Thus the support from the stake 

holders of the city would become easier if the awareness is created with these qualitative 

reports being prepared and shared with the key stake holders of the city.

18.2.2 Institutional Reforms 

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The Institutional reforms suggested for Dharapuram municipality can be 

broadly divided into the following heads: 

Training and Capacity Building for administrative staff and elected officials 

Private Sector Participation 

User charges 

MIS and E Governance 

18.2.2.1 Training and Capacity Building for administrative staff 

and elected officials 

Both the elected and administrative member has undergone periodic training under the 

TNUDP and other programs of the state government. For the administrative staff 

training has been given at various levels in the areas of Technical issues, Accounts, 

Human Resources, Computer etc. 

The various training undergone by the staff of Dharapuram Municipality has been 

elaborated as under: 

Training 

Training to the staff are provided in the areas of Human Resource development & 

Training, Sectoral Training, Accounts and Computerisation and E-governance 

depending upon the need under TNUDP III Programmes and other programmes 

organized by CMA 

Some of the details of latest training undergone by the staff are as below: 

HRD training & General Training was imparted to Manager, Junior Accountant, and 

Accountant under TNUDP III Program conducted by Tamil Nadu Institute of Urban 

Studies, Coimbatore. 

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Comprehensive Computer Training for the staff of ULB was imparted to Oversear, 

Revenue Assistant, Town Planning Inspector and Junior Assistant and also Basic 

Concepts on Networking Components Training was imparted to the Assistant 

Programmer. 

Accrual Based Accounting Training was imparted to Junior Assistant in the 

municipality under TNUDP III Program. 

Technical Training: 

a) Filter Operation, Care and Use of Chlorinators Training was imparted to 

Overseer and Junior Engineer 

b) Quality Control in Bituminous Construction and Maintenance including 

latest developments Training was imparted to the overseer. 

c) Maintenance and Management related to Municipal Water Works 

Training was imparted to Junior Engineer 

d) Comprehensive Training in Urban Engineering and Management Training 

was imparted to the Work Inspector 

e) Skill Development for staff in Engineering Department of ULB Training 

was imparted to the Work Inspector 

f) New Development in Water Treatment Training was imparted to the 

Municipal Engineer 

• Public Grievance Redressal Mechanism 

Grievances from the public are received from various sources such as 

the CM Cell, Collectorate, Elected Councilors and direct complaints 

in the complaint register. 

The redressal response time has been fixed for various grievances 

Most of the complaints pertains to Water Supply 

It is recommended that the periodicity of the training can be enhanced coupled with 

more qualitative in-depth focus on the type of training offered. This would result in 

increased awareness among the administrative staff on various issues there by 

enhancing their productivity and creating awareness about their responsibility 

towards the public. For both elected and administrative members educational and 

awareness tours can be organized to understand the best practices in various services 

of other ULBs.

18.2.2.2 Private Sector Participation 

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Government of Tamil Nadu (GoTN) has laid down a policy clearance order for the 

ULBs in the State, indicating the areas of privatization in the sectors of Solid Waste 

Management, Water Supply, Sewerage, Drain Cleaning, Public Toilets, Road 

Maintenance, Street Lighting, Parking lots, parks and play grounds, and vehicle 

maintenance. The GoTN states that this list is indicative and local bodies are free to 

investigate other areas of privatization. The local body would be saving the indirect 

cost towards pension, gratuity, etc if privatization efforts are initiated and effective 

monitoring and evaluation on the delivery of services of private contractor is adopted. 

Table 18-E: Areas of Privatization/outsourcing 

Areas of privatization/Outsourcing Details 

SECTOR CURRENTLY PRIVATISED SOLID WASTE MANAGEMENT 

Contract period 2006 

Contractor Rajeshwaran Mahalingam, Pollachi 

Coverage 9 out of 30 Wards (Ward no.19 to 27) 

Amount paid to the contractor Rs.132250/- Per Month 

Other areas of privatization 

18.2.2.3 User Charges 

Complete Privatization of Solid Waste 

Management may not be an immediate 

possibility considering the current strength 

of conservancy workers in the payroll of 

the municipality. 

There is a need to introduce in phases “User Charges” for various infrastructure 

amenities provided by the municipality. Cross subsidization of tariff, Innovative 

product structuring and community participation are some of the measures which 

could be explored to provide services for the urban poor. 

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Currently only for water supply the ULB is able to generate direct revenue in the form 

of water charges, initial deposit and connection charges and indirectly through water 

tax which is a component of property tax. For other services the ULB depends on its 

taxes and external funds to fund its activities. As these are inadequate the municipality 

is facing continuous deficits even in meeting its obligatory commitments and are 

unable to initiate any major improvement scheme for development of the city. In the 

light of the above limitations, the ULB needs to explore the option of introducing user 

charges in other areas too. For the proposed UGD collection of user charges for 

meeting O & M expenses becomes imperative. 

Some of the suggested areas are user charges from commercial entities and 

institutions for solid waste management to be extended to residential areas in phases 

after proper awareness is created at all levels. However as per our discussions with the 

OWG, immediate introduction of user charges may not be possible. 

To enhance its revenue the municipality would need to increase the deposit charges 

for new connections and can explore the option of increasing the water charges. This 

backed by higher collection efficiency and enhanced service coverage of water 

connections can minimize revenue leakages from water sources. It is recommended 

that service coverage to be improved from the current 52.40% to 85% over a 

stipulated time period. This could also minimize unauthorized/illegal connection. 

However in the absence of records in these aspects, the revenue loss from water 

supply cannot be quantified accurately. 

18.2.2.4 E-Governance & Computerization 

There is a data entry operator for attending to information and MIS requirements. 

This activity has come under the limelight after a significant computerization activity 

was undertaken under TNUDP programs. The municipality also has an E-mail address 

and any complains or suggestions can be received on this.

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Table 18-F: E-Governance status 


Module Category 

Status of 

Modules Online 

Birth & Death Yes 

Property Tax Yes 

Non-Tax Yes 

Water Charges Yes 

Building Plan Yes 

F.A.S Yes 

Vehicle Maintenance Yes 

Pay Roll Yes 

Professional Tax Yes 

D&O Yes 

Movable& immovable Yes 

Stores and Inventory Yes 

Family Enumerator No 

Hospital Mgt No 

Census Record No 

Electrol Roll No 

Solid Waste Management Yes 

Grievance Records Yes 


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18.2.3 Reforms in Physical Infrastructure 

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Table 18-G: Reforms in Physical Infrastructure 

Sectors Suggested Reforms 

Water Supply 

Service coverage of water connections to be increased from current 52.40 

% to 85% by 2017-18. 

Water supply charges and connection charges need to be revised on 

periodic basis ie once in 5 years to fund its future investments in water 

supply. 

Monthly service charges for the consumers can be increased minimum of 

25% every 5 years. 

For funding its investments in water supply, the municipality can 

consider alternative payment structures for water. It could offer one-time 

payment options, where the connection fee is bundled with usage fees for 

a number of years. The packages could be made attractive by offering 

suitable levels of discounts. This could result in reduction in collection 

risk and reduced cost of billing and collections. The same could be used 

for other services, where the collection requires the effort of the 

municipal staff. 

To improve the collection levels, the municipality could look at 

providing an incentive and penalty structure for payment of water taxes 

and charges. 

For reducing operating and maintenance costs, water leakage audit, 

installation of leak detection equipment and replacement of pipes needs 

to be done on regular basis. 

Currently there is no record maintained for Unaccounted for Water 

(UFW). 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. There is need for maintaining such a record for 

reducing the possibilities of revenue leak through unauthorized/illegal 

connections. 

Pumps, motors and distribution network which undergo severe wear and 

tear impact power costs of the municipality besides reducing operational

Sewerage 

services 

Solid Waste 

Management 

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efficiency. Hence periodic maintenance of the system with regular 

investments in up gradation and replacement of pipelines, motors and 

pumps needs to be followed to avoid huge one time expenditure to the 

maximum extent possible. 

Privatization in routine maintenance relating to water supply such as 

hand pumps can be considered 

Periodic technical training to its engineering cell is required. 

Privatization of maintenance of sewerage system can be considered to 

reduce the establishment charges of municipality and O&M Charges. 

Sewer Connection charges to the users can be increased once in five 

years for better revenue generation. 

Monthly service charges for the consumers can be increased 

minimum of 25% every 5 years. 

To improve the collection levels of monthly charges, the municipality 

could look at providing an incentive and penalty structure for 

payment of charges and privatize the collection system. 

Pumps, motors in sewage pumping stations undergo severe wear and 

tear and impacts power costs of the municipality besides reducing 

operational efficiency. Hence periodic maintenance of the system 

with regular investments in up gradation and replacement of 

pipelines, motors and pumps needs to be followed to avoid huge one 

time expenditure to the maximum extent possible. 

Annual Maintenance Contract for Sewage Pumping Stations and 

Sewage Treatment Plants can be adopted. 

Periodic technical training to its engineering cell is required in O&M 

of Sewage Treatment Plant, Pumping Stations and Sewer Networking 

System. 

Door to door collection of garbage at household level and segregation 

of waste at source need to be implemented after creating suitable 

awareness level 

Gradual and phased introduction of user charges initially for 

commercial areas later to be extended to residential zones can be 

considered in later years after proper awareness is created among 

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various stake holders. 


Private sponsorship of bins for waste segregation at house hold level 

can be looked into 

Vehicles used in SWM and conservancy activities such as tipper 

lorrys, tractors; dumper blazer etc can be maintained through 

outsourcing arrangement with reputed contractors. The Annual 

Maintenance Contract should be all comprehensive covering various 

critical clauses in order to protect the municipality from possible 

claims from the Ways to improve the revenue from charges that are 

being collected from different commercial establishments like hotels 

including kiosks, eating houses, restaurants, star hotels and retail 

markets should be studied. 

The municipality can identify the ways to generate revenue from 

Solid Waste by selling compost at market. 

The municipality can auction to the private parties for disposal of 

recyclables. 

Potential for getting carbon credit benefit through the Clean 

Development Mechanism (CDM) need to be studied in making a 

comprehensive solid waste management scheme. 

Complete Privatization of services for the following activities can be 

undertaken to reduce the establishment charges and O&M charges of 

Municipality: 

o Door to door collection of domestic waste 

o Door to door collection of commercial waste, construction waste 

and Market waste. 

o Setting up and operation and maintenance of waste treatment 

plants. 

o Supplying vehicles on rent 

o Transportation of waste on contract basis. 

Delegation of powers and fixing accountability should be done for 

better management of the system. . 

Human Resources Development 

Special training to unqualified staff

Street lights 

Roads 

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Refresher courses for all levels of staff about 

advances in the field of SWM 

Exposure to elected members 

Design of SWM course to Public Health staff 

Meeting the norms of one pole per 30 meters by 2012 

Energy Audit needs to be conducted periodically. 

Private parties can be involved for financing, operation and 

maintenance of energy efficient street light projects to reduce the cost 

incurred for the same. 

Relaying Bitumen roads once in three years with patch works to be 

undertaken based on the need in between years 

Future roads to be laid with dedicated service lanes. 

Relaying roads with recyclable materials like fly ash, can be explored 

18.3 Additional Resource Mobilization 

As discussed in detail in earlier chapter that the revenue of the municipality is 

inadequate to meet its service obligations and hence faces resource constraint in 

initiating major development works which require sustainable investments. Hence 

both the traditional and non-traditional alternatives for resource mobilization need to 

be evaluated in light of the huge investments required for many projects identified. 

Resource Mobilization efforts need to be directed towards generating additional 

revenue from existing avenues such as property taxes, profession tax, water charges, 

service charges and fees and remunerative assets of the municipality. Besides this the 

municipality would need to take measures to control expenditure in water supply, 

solid waste management, street lighting etc. Additional resource mobilization options 

such as enhancing revenues of remunerative assets, non-tax revenue options such as 

advertisement and parking fees for the municipality are discussed in detail in 

subsequent paragraphs. 

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18.3.1 Additional revenue from Social Remunerative 

assets 

Table 18-H: Revenue from Social Assets 

Rs.in Lakhs 

Particulars 2005-2006 2006-2007 2007-2008 

Daily and weekly market 11.23 13.62 8.68 

Entry fee 13.23 14.05 16.61 

Bus stand murukku, murappa 

selling 

1.10 1.45 2.18 

Bus stand flower / cucumber sale 1.76 1.90 2.13 

Bus stand Tender coconut 1.49 1.63 1.76 

Bus stands pay and Use (2 Nos.) 5.64 8.46 8.07 

Poultry market fee 0.37 0.27 0.35 

Mutton / fish shops 0.26 0.27 0.44 

Slaughter house 0.12 0.26 0.30 

wood entry fee 0.51 0.74 1.06 

Old Bus stand pay and use 1.74 1.61 1.21 

Solai Kadai Veedhi Pay and Use 0.33 0.34 0.34 

Bus stand Urinals NA NA 2.22 

Lorry terminal 0.10 0.00 0.10 

Advertisement through loud 

speakers 

0.07 0.00 0.06 

Weighing machine 0.05 0.00 0.04 

road side tree leasing 0.03 0.05 0.05 

Total shop income 17.11 24.68 19.21 

Income from remunerative social 

assets 

Source: Dharapuram municipality 

55.14 69.33 64.81 

As seen from the above table, the municipality earns more than Rs.60 lacs from 

remunerative assets including daily market, shops, pay and use toilets, entry fee for 

bus etc. The municipality is following the norms of tender cum auction system for 

leasing out the remunerative assets. The lease is either annual/monthly basis. In line 

with the practice of all municipalities, there would be a 15% revision in charges from 

these assets in three years after the expiry of lease. As per our discussions with

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OWG, no renovation is required for the markets both weekly and daily. Hence a 

nominal increase in income from existing remunerative social assets is estimated for 

future years in line with the norms set by the government for rental lease of 

remunerative assets. 

18.3.2 Advertisement & Parking Fees 

Currently the Advertisement Fees and parking fees being collected by the 

municipality is very nominal. Possibilities of significant revenue from this source are 

limited in the near future (2-3 years) as awareness levels needs to be created first on 

the importance of this additional revenue for development of the town. 

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19 FINANCIAL FINANCIAL OPERATING 

OPERATING OPERATING PLAN 

PLAN 

19.1 Background- need for an FOP 

The Financial Operating Plan (FOP) assesses the financial strength of the municipality 

to implement the identified investments. The Financial Operating Plan (FOP) 

forecasts the municipal finances on the basis of certain assumptions on income and 

expenditure. The primary objective of the FOP is to ascertain the investment 

sustenance capacity of the municipality under different scenarios of revenue 

enhancement and expenditure control. 

In the FOP four scenarios are envisaged 

Scenarios Details 

Base Case Scenario No New Projects without Reforms 

Full Project Scenario 


Sustainable Project Scenario 

Implementation of all Projects required for 

the next 15 years without Reform 

implementation 

Implementation of all Projects required for 

the next 15 years with Reform 


Implementation of key Projects required for 

the next 15 years with Reform 


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The key reforms are highlighted in Table below. The total reforms suggested have 

been elaborated in Reforms Implementation Schedule (Figure 19-1 

Key reforms 

Particulars Current practice Reform suggested 

Revision in 

Property tax rates 

Service level 

Coverage (Water 

Supply- Number of 

assessments) 

Revision in Initial 

Deposit for New 

Water Connections 

Revision in Water 

Charges 

Revision in Initial 

Deposit for New 

UGD Connections 

Revision in 

Monthly user 

charges for UGD 

User Charges for 

Solid Waste 

Management 

Revision once in 10 years 

53% 

Adhoc revision 

25% increase in every 5 

years 

3% to 4% increase every 

year achieving 85% 

coverage by 2017-18 

Rs.2000 increase every 5 

years for each new 

connection 

Adhoc revision 25% increase every 5 years 

No UGD currently 

Rs.2000 increase every 5 

years for each new 

connection 

No UGD currently 25% increase every 5 years 

Not Charged 

Rs.40 per month from Non- 

Domestic assesses from the 

year 2011-12 and Rs.20 per 

month from Domestic 

assesses from the year 2013- 

14. A 25% increase every 5 

years in the user charges has 

been proposed.

19.2 Financial Sustainability 

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The financial sustainability Analysis is carried out with the basic assumption that the 

municipality will carry out reforms and projects envisaged under various scenarios. 

The Financial Operating plan prepared for Dharapuram Municipality evaluates the 

municipality’s financial position based on the three scenarios described below: 

19.2.1 Base Case Scenario 

In the base case scenario, the finances of ULB are forecast for next 15 years without 

taking into consideration any new projects envisaged in Capital Investment Plan. 

Additional resources mobilized through various initiatives such as resource 

mobilization through enhanced revision of property tax rates and no of assessments 

(based on projected population increase), increased revenue realization through faster 

growth in service charges and fees including revision of user charges and connection 

charges for water supply, other income (mainly Lease rental income) etc are loaded to 

the FOP in the base case scenario. Routine revenue expenses including Operations and 

Maintenance of existing assets have also been considered and loaded to the FOP. 

Revenue surplus thus generated indicates ULBs capacity to service the usual capital 

expenditure in the normal course of running its operations. 

19.2.2 Full project Scenario 

Full Project scenario for Dharapuram has been worked out based on estimated 

demand supply analysis of various physical and social infrastructure requirements of 

the city and feedback of OWG members on the city’s needs for the next 15 years. The 

financial mix for funding these projects has been based on prudent financial norms 

and existing practices currently being followed today. The projects identified are vital 

for meeting the basic requirements of the town as per the infrastructure standards. 

Furthermore all the projects identified fall under the obligatory functions under the 

12 th Schedule. In the event of the town not undertaking the project, the key problems 

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would be poor infrastructure resulting in poor service delivery and loss of potential 

revenue from new revenue streams like UGD. To overcome these issues the 

framework for FOP is developed taking into account existing strengths of the town 

and also reducing the inefficiencies in the system. 

Phasing of the identified projects is done based on the possible year of construction, 

demand supply gap analysis and investment priority of the OWG members. 

Implications of the investments worked out in terms of external borrowing required, 

the resulting debt servicing commitments, external support in form of grants and 

additional operation and maintenance expenditure anticipated due to the new projects 

identified have been worked out for the next 15 years. Debt servicing capabilities, 

gaps in required investments from ULB for the said projects vs the actual availability 

with the municipality for the ULB’s contribution for the said projects has been worked 

out to estimate the extent of ULB’s capability to meet its contribution for financing 

the new projects identified under Capital Investment Plan. 

The implications on the investment and borrowing capability of the ULB for all the 

identified projects is worked out under two scenarios 

A) Without suggested reforms 

B) With suggested reforms 

19.2.3 Sustainable Project 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 with external support and borrowings.

19.3 Assumptions for FOP 

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This FOP is based on a whole range of assumptions related to income and 

expenditure. These are critical to understand the financial projections worked out, 

sustenance of the projected increase in revenue and expenditure under various 

scenarios and surplus thus generated. Assumptions regarding interest rates, repayment 

terms and conditions, financing pattern have also been explained in subsequent 

paragraphs. Assumptions regarding additional Operation and Maintenance Expenses 

for the new projects identified have also been provided. The assumptions would help 

in understanding the extent of investment sustenance for future projects envisaged. 

19.3.1 Revenue Income 

In case of taxes and non tax revenue such as property taxes, water charges and 

sewerage charges where the base and basis of revenue is fairly well known and 

predictable the likely revenue is forecast based on certain assumptions regarding 

growth in number of assessment, revision in average revenue per property (for 

property taxes), revision in charges/Tariffs (water charges and sewerage). Table 

19-A, Table 19-B, Table 19-C lists out the assumptions with regard to forecasting 

income from property tax, water charges and sewerage charges respectively. 

Assumptions regarding other sources of revenue income have been given in Table 

19-D. Tables indicate the assumptions in revenue income in base case scenario and 

investment scenario. 

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19.3.1.1 Property Taxes 

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Table 19-A : Key assumptions for forecasting income from Property Taxes 

Description Current Level Base Case Scenario Investment Scenario 

Annual Growth in 

Number of 

Assessment 

Periodic Increase 

in Average 

Revenue per 

property (%) 

Source: Analysis 

19.3.1.2 Water Charges 

0.67% 

(CAGR from 2002-03 

till 2007-08) 

Projected based on 

the estimated increase 

in population of the 

city + 1% of the 

projected property 

assessment for un- 

assessed Properties 

25% increase in every 

5 years 

Projected based on the 

estimated increase in 

population of the city 

+ 1% of the projected 

property assessment 

for un-assessed 

Properties 

25% increase in every 

5 years 

Table 19-B: Key assumptions for forecasting income from Water Charges 

Description 

Current 

Level 

Base Case 

Scenario 

Investment 

Scenario 

% OF WATER CONNECTIONS TO PROPERTY TAX ASSESSMENT 

2008-09 52.40% 

2012-13 65% 65% 

2017-18 85% 85% 

INITIAL DEPOSIT FOR NEW WATER SUPPLY CONNECTIONS ( Rs. per 

connection) 

Domestic (Rs.) 

From 2008-09 till 2012-13 Rs.5000 

From 2013-14 till 2017-18 Rs.7000 Rs.7000 

From 2018-19 till 2022-23 Rs.9000 Rs.9000

Non-Domestic (Rs.) 

From 2008-09 till 2012-13 Rs.10000 

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From 2013-14 till 2017-18 Rs.12000 Rs.12000 

From 2018-19 till 2022-23 Rs.14000 Rs.14000 

WATER CHARGES (per month) 


From 2008-09 till 2012-13 Rs.50 

From 2013-14 till 2017-18 

From 2018-19 till 2022-23 


From 2008-09 till 2012-13 Rs.150 

From 2013-14 till 2017-18 

From 2018-19 till 2022-23 


19.3.1.3 Sewerage Charges 

Rs. 63 (25% 

increase) 

Rs.78 (25% 

increase) 

Rs.188 (25% 

increase) 

Rs.234 (25% 

increase) 

Rs. 63 (25% 

increase) 

Rs.78 (25% increase) 

Rs.188 (25% 

increase) 

Rs.234 (25% 

increase) 

Table 19-C : Key assumptions for forecasting income from Sewerage Charges 

Description 

Number of UGD Connections 

Ratio of Domestic and Non-Domestic to the 

total UGD Connections (This is based on the 

current % of Domestic and Non-Domestic of the 

total Property tax assessments) 

MONTHLY USER CHARGES 

(Note: Monthly User charges would be collected 

after the UGD Project is completed) 

Current 

Level 

Base Case 

Scenario 

Investment 

Scenario 

70% of Total 

Number of Property 

tax assessment 

75:25 

Domestic (Rs./Month.) 

From 2011-12 till 2015-16 Rs.75 

From 2016-17 till 2020-21 Rs.94 (25% increase) 

From 2021-22 till 2022-23 

Rs.117 (25% 

increase) 

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-7

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-8 

Non-Domestic (Rs./Month.) 

From 2011-12 till 2015-16 Rs.175 

From 2016-17 till 2020-21 

From 2021-22 till 2022-23 

DEPOSIT FEE /CONNECTION 


From 2008-09 till 2012-13 Rs.9000 

TNUIFSL 


Rs.218.75 (25% 

increase) 

Rs.273 (25% 

increase) 

From 2013-14 till 2017-18 Rs.11000 

From 2018-19 till 2022-23 Rs.13000 


From 2008-09 till 2012-13 Rs.14000 

From 2013-14 till 2017-18 Rs.16000 

From 2018-19 till 2022-23 Rs.18000 


19.3.1.4 Other sources of Revenue income 

Particulars 

Profession Tax 

External Sources 

(Assigned 

Revenue+ 

Devolution 

Funds+ Grants & 

Contribution) 

Table 19-D : Assumption for Income 

Current Growth 

Rates (CAGR-%) 

12.57% (2002-03 

till 2006-07) 

Assigned 

Revenue- 

Declining Trend & 

Devolution Funds- 

Inconsistent trend 

Projected 

growth Rates 

(%) 

5.00% 

5% 

Notes 

Since there is a 

declining trend shown 

in assigned revenue 

and a inconsistent 

trend in devolution 

fund a secular long 

term growth trend of 

5% is assumed.

Service Charges 

& fees(Excluding 

Water Charges) 

Other Income 

User Charges for 

Solid Waste 

Management 

TNUIFSL 

0.78% 5% 

Inconsistent 

Trend. 


5% 

Includes Bus stand Fee 

( 8% growth rate 

assumed on account of 

Bus Stand 

Improvement), 

Slaughter House Fees, 

Building license Fees 

and Other Fees 

As there is a huge 

deviation in the 2007- 

08 budgeted estimates, 

2006-07 is taken as a 

base for projections @ 

5% growth rate. 

Rs.40 per month from 

Non-Domestic 

assesses from 2011-12 

and Rs.20 per month 

from Domestic 

assesses from 2013-14. 

A 25% increase every 

5 years in the user 

charges has been 

envisaged. 

Source: Analysis based on past financials provided by Dharapuram Municipality 

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-9

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-10 

19.3.2 Revenue Expenditure 

19.3.2.1 Current Revenue Expenditure 

TNUIFSL 


Table 19-E: Assumption for Revenue Expenditure 

Particulars (CAGR-%) 

Salaries- 6.70% 

Projected Growth Rates (%) 

Personnel Cost & Retirement 

Benefits ( Salaries) 

(2002-03 till 

2006-07) 

Retirement Benefits- 

Inconsistent trend 

Operating Expenses 17.06% 6% 

Repairs & Maintenance Increasing trend 

6% 

6%. This Includes the Maintenance expense 

for water supply works which has been 

projected based on the supply from TWAD 

to the ULB @ 90 LPCD per person for 6 

months mainly in summer. 

Programme & AdminExpenses Increasing Trend 5% 

Source: Analysis based on past financials provided by Dharapuram Municipality 

19.3.2.2 Future Debt obligations 

Table 19-F: Key assumptions for forecasting future debt obligations 

Sector Tenure Moratorium Rate of Interest (%) 

Water Supply, UGD 20 5 9.00 

Roads, Storm Water Drains 10 2 8.50 

Others 5 NIL 9.00 


19.3.2.3 Additional O&M Expenditure due to sub-projects 

This has already been covered in Chapter 17: Asset Management Plan: Table 17-E O 

& M for proposed capital works

19.3.3 Funding Mechanism 

TNUIFSL 


Table 19-G : Financing Pattern for Proposed projects 

Particulars Loan Grant 

ULB 

Share/Public 

Contribution 

Notes 

Water Supply 50 30 20 

UGD 50 30 20* 

*Public 

Contribution 

Sanitation 50 50 

Storm Water Drainage 60 30 10 

Solid Waste Management 50 50 



60 30 10 


Socio-Economic Infrastructure 

100 

School Building 100 Education Fund 

Parks and Playgrounds 50 50 

Community Hall 50 50 

Municipal Building 50 50 

Daily and Weekly Market 90 10 

Gassifier 50 50 

IHSDP 80 20** 


**Equal Contribution 

from ULB and 

beneficiaries 

T 

N 

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D 

P 

I 

III 

Final 

Report 

19-11

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-12 

TNUIFSL 


19.4 Outcome of Financial Operating Plan 

19.4.1 Base Case Scenario (“Business as Usual 

Scenario”) 

In the Base Case Scenario, the finances of ULB are forecast for the next 15 years without 

taking into consideration any new projects envisaged in Capital Investment Plan (CIP). The 

past trends in growth rates in revenue income and expenditure are assumed to continue over 

the next 15 years. No new revenue sources such as user charges for UGD, SWM are 

envisaged under this scenario. Revenue surplus thus generated indicates ULB’s capacity to 

service the usual capital expenditure in the normal course of running its operations. Table 

19-H indicates the revenue surplus position of the ULB over the 15 year period. 

The following are the outcome under this scenario:- 

The projected cumulative revenue surplus (Closing Balance) of the ULB shows a 

healthy surplus position over the 15 year period with a revenue surplus touching 

Rs.1254.59 Lakhs in the year 2022-23 with a comfortable debt repayment 

position.

Dharapuram 

Table 19 H :Financial Operating Plan - No Projects,No REFORMS- Base Case Scenario 

2008-09 

2009-10 

2010-11 

2011-12 

Projections Rs.in Lakhs 

2012-13 

2013-14 

Particulars 

Revenue Income 

Opening Balance 89.30 142.18 184.71 224.71 261.67 295.55 350.07 407.28 465.32 534.78 602.14 731.84 861.36 991.23 1122.07 

Property Tax 153.51 155.63 157.77 159.95 162.15 164.47 166.83 169.22 171.65 174.11 221.05 224.46 227.93 231.45 235.03 

Other Tax 16.76 17.60 18.48 19.40 20.37 21.39 22.46 23.58 24.76 26.00 27.30 28.66 30.09 31.60 33.18 

External Sources 197.56 207.44 217.81 228.70 240.13 252.14 264.75 277.98 291.88 306.48 321.80 337.89 354.78 372.52 391.15 

Service Charges and Fees 94.29 94.38 101.45 105.90 110.62 131.27 136.93 142.98 149.43 156.32 183.39 191.62 200.46 209.89 219.97 

Sale & Hire Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Other Income 72.00 79.20 87.12 95.83 105.42 115.96 127.55 140.31 154.34 169.77 186.75 205.42 225.97 248.56 273.42 

Revenue Income (A) 534.12 554.24 582.62 609.78 638.69 685.22 718.52 754.07 792.06 832.67 940.28 988.05 1039.23 1094.03 1152.75 

Revenue Expenditure 

Personel Cost I (Salaries) 197.12 208.94 221.48 234.77 248.86 263.79 279.62 296.39 314.18 333.03 353.01 374.19 396.64 420.44 445.66 

Personel Cost II (Others) 5.35 5.41 5.46 5.52 5.57 5.63 5.68 5.74 5.80 5.85 5.91 5.97 6.03 6.09 6.15 

Terminal and retirement benefits 67.15 71.18 75.45 79.98 84.78 89.86 95.25 100.97 107.03 113.45 120.26 127.47 135.12 143.23 151.82 

Operating Expenses 84.55 89.62 95.00 100.70 106.74 113.14 119.93 127.13 134.75 142.84 151.41 160.49 170.12 180.33 191.15 

Repairs & Maintenance 79.18 83.93 88.97 94.31 99.97 105.96 112.32 119.06 126.20 133.78 141.80 150.31 159.33 168.89 179.02 

Programme Expenses 4.34 4.56 4.78 5.02 5.28 5.54 5.82 6.11 6.41 6.73 7.07 7.42 7.79 8.18 8.59 

Administrative Expenses 19.11 20.06 21.06 22.12 23.22 24.38 25.60 26.88 28.23 29.64 31.12 32.68 34.31 36.03 37.83 

Debt Repayment for existing loans 24.44 28.02 30.41 30.41 30.41 22.39 17.08 13.76 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Revenue Expenditure(B) 481.24 511.72 542.62 572.82 604.82 630.70 661.31 696.04 722.60 765.32 810.58 858.54 909.35 963.19 1020.23 

Revenue Surplus/Deficit(A-B) 52.88 42.52 40.01 36.96 33.87 54.53 57.21 58.04 69.46 67.36 129.70 129.52 129.88 130.84 132.52 

Closing Balance (C+X)=D 142.18 184.71 224.71 261.67 295.55 350.07 407.28 465.32 534.78 602.14 731.84 861.36 991.23 1122.07 1254.59 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

TNUIFSL 


19.4.2 Full Project Scenario WITHOUT Reforms 

Under this NO REFORM Scenario, the FOP for full project has been worked out as 

under: 

• Funding pattern as per Prudent Financial norms 

The same has been elaborated under heading 19.4.2.1 

19.4.2.1 Full Project Scenario WITHOUT Reforms and Funding 

pattern for the new projects based on prudent financial 

norms 

The Full project investment scenario is based on projects identified for Dharapuram 

Municipality and the investment required for upgrading the town’s infrastructure. The 

projects have been identified based on estimated demand supply analysis of various 

physical and social infrastructure requirements of the city and feedback obtained from 

OWG members on the city’s needs for the next 15 years. The financial mix for 

funding these projects has been based on prudent financial norms and existing 

practices currently being followed. The projects identified are vital for meeting the 

basic requirements of the city as per the infrastructure standards and norms. 

The cash flows from the new projects is given in Table 19 I and the adverse financial 

impact in implementing these projects without undertaking the reforms suggested is 

shown in Table 19 J. 

The following is the outcome under this scenario:- 

Without reforms, the ULB would not be able to meet O&M expenses of new Projects 

year on year and cumulatively the Net surplus is very minimal for the next 15 years. 

Hence with ULB’s financial position, no borrowings would be possible for funding the 

projects identified. 

The ULB would not be able to contribute its share in the total project funding. 

As seen from Table 19 K the ULB faces serious constraints in meeting the O&M of new 

projects without undertaking the reforms. Hence the only solution for the ULB for 

implementing all the identified projects is to undertake all the reforms suggested. The same 

has been elaborated under heading 19.4.3 

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-13

Dharapuram 

Table No 19 I: Full Project Cash Flow , Full Project ,WITHOUT REFORMS - As per Prudent Financial norms 

Particulars 2008-09 

2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

Opening Balance (A) -3.11 -67.98 -206.76 -385.72 -633.92 -917.41 -1257.61 -1658.30 -2195.29 -2785.53 -3446.13 -4181.41 -4982.43 -5855.13 

A Sources of Funds 

1 Debt Drawn Down 34.60 709.79 708.47 879.56 157.77 90.86 137.62 107.50 245.80 221.88 301.79 348.61 289.87 378.65 365.82 

2 ULB Own Contribution 46.20 128.82 26.63 44.17 48.94 91.30 47.53 39.37 94.79 52.78 112.28 88.44 73.03 84.47 83.42 

3 External Support 44.25 513.45 470.05 524.76 90.01 110.97 82.25 66.00 169.13 118.76 197.17 188.16 156.43 199.44 193.56 

4 Public Contribution 0.00 274.83 286.91 297.56 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Monthly User Charges from 

5 UGD 0.00 0.00 0.00 0.00 122.50 124.26 126.04 127.85 129.68 131.54 133.57 135.63 137.73 139.86 177.53 

Initial Deposit from 

6 Additional UGD Connections 0.00 0.00 13.84 14.06 14.20 15.00 15.22 15.44 15.65 15.87 17.39 17.61 21.39 21.74 22.08 

Total Inflow (B) 125.05 1626.89 1505.89 1760.11 433.42 432.38 408.66 356.15 655.04 540.83 762.20 778.45 678.45 824.16 842.42 

B Disposition of Funds 

1 Project Capex 125.05 1626.89 1492.05 1746.05 296.72 293.12 267.40 212.86 509.71 393.42 611.24 625.20 519.33 662.56 642.81 

2 O&M For New Project 0.00 0.58 24.56 51.72 229.92 246.15 260.89 277.94 295.10 321.16 348.23 374.66 404.23 433.36 468.99 

Debt Servicing (Principal + 

3 Interest) 3.11 64.29 128.05 141.30 154.98 176.60 220.57 266.03 387.22 416.48 463.34 513.85 555.91 600.94 638.58 

Total Outflow ( C ) 128.1671 1691.761 1644.667 1939.0767 681.616199 715.868509 748.855968 756.836732 1192.0355 1131.067657 1422.80542 1513.723223 1479.472641 1696.864106 1750.375748 

Net Cash Flow (B-C)= D -3.11 -64.87 -138.77 -178.97 -248.19 -283.49 -340.20 -400.69 -536.99 -590.24 -660.60 -735.27 -801.02 -872.71 -907.96 

Closing Balance (A+D)=E -3.11 -67.98 -206.76 -385.72 -633.92 -917.41 -1257.61 -1658.30 -2195.29 -2785.53 -3446.13 -4181.41 -4982.43 -5855.13 -6763.09 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Dharapuram 

Table No 19 J. : Financial Operating Plan- With FULL PROJECT WITHOUT REFORMS- As per Prudent Financial Norms 

2008-09 

2009-10 

2010-11 

2011-12 


2012-13 

2013-14 

Particulars 



Property Tax 153.51 155.63 157.77 159.95 162.15 164.47 166.83 169.22 171.65 174.11 221.05 224.46 227.93 231.45 235.03 

Other Tax 16.76 17.60 18.48 19.40 20.37 21.39 22.46 23.58 24.76 26.00 27.30 28.66 30.09 31.60 33.18 




Other Income 

User Charges from SWM 

72.00 79.20 87.12 95.83 105.42 115.96 127.55 140.31 154.34 169.77 186.75 205.42 225.97 248.56 273.42 

User Charges from UGD 0.00 0.00 0.00 0.00 122.50 124.26 126.04 127.85 129.68 131.54 133.57 135.63 137.73 139.86 177.53 

Initial deposit for new UGD Connections 0.00 0.00 13.84 14.06 14.20 15.00 15.22 15.44 15.65 15.87 17.39 17.61 21.39 21.74 22.08 














Total Net Project Cash Flow (E) -49.31 -200.96 -246.30 -413.21 -763.32 -1071.11 -1349.15 -1726.03 -2302.87 -2834.64 -3503.96 -4166.81 -4911.70 -5752.84 -6651.25 

Overall Closing Balance (D+E)=F 92.87 13.11 51.72 -30.34 -172.22 -237.92 -263.90 -380.47 -677.98 -924.74 -1279.62 -1625.44 -2046.52 -2559.87 -3090.25 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Table No 19 K : Calculation of Net Surplus after meeting the O&M on account of New Projects- Full project WITHOUT Reforms 

Dharapuram 

YOY Rs.in lakhs 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

Revenue Surplus before meeting the 

debt obligations 77.32 99.90 114.36 115.26 238.64 264.49 269.14 274.07 279.34 285.01 314.44 317.03 323.81 327.79 368.03 

O&M on New projects 0.00 0.58 24.56 51.72 229.92 246.15 260.89 277.94 295.10 321.16 348.23 374.66 404.23 433.36 468.99 

Revenue Surplus after meeting New 

O&M 77.32 99.32 89.80 63.54 8.72 18.34 8.25 -3.87 -15.76 -36.15 -33.80 -57.63 -80.42 -105.57 -100.96 

Cumulative 

Cumulative revenue Surplus before 

meeting the debt obligations 166.63 266.53 380.89 496.15 734.79 999.28 1268.41 1542.48 1821.82 2106.82 2421.26 2738.29 3062.10 3389.89 3757.93 

Cumulative O&M on New Projects 0.00 0.58 25.14 76.87 306.79 552.93 813.82 1091.76 1386.86 1708.02 2056.25 2430.91 2835.14 3268.50 3737.49 

Cumulative revenue Surplus after 

meeting the New O&M 166.63 265.95 355.74 419.28 428.00 446.34 454.60 450.73 434.96 398.81 365.01 307.38 226.96 121.39 20.43 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

TNUIFSL 


19.4.3.2 Full Project Scenario WITH Reforms and with 

additional external support 

The cash flows from new projects is shown in Table 19 P and the financial impact in 

implementing the Full projects WITH reforms but with additional external support is 

given in Table 19 Q. 


The ULB is able to meet the O&M of new Projects for the next 15 years 

The ULB would be able to borrow Rs.7.64 crs against the requirement of Rs.49.79crs 

With the borrowings of Rs.7.64 crs, the ULB would be able to meet its debt 

repayment commitments as indicated by the Debt Service Coverage ratio (DSCR). 

The same has been shown in Table 19R. This is possible only due to strong external 

support 

Total external support required would be Rs.79.04 crs 

The ULB would not be able to meet its contribution in funding of the projects 

The table below shows the funding and borrowing capacity of the ULB under “Full Project 

Scenario WITH Reforms” 

Table 19 S: Funding requirements as per Prudent Funding Norms vs. 

Funding Possibilities based on borrowing capacity – Full Project Scenario 

WITH Reforms 

Particulars 

Full project Scenario- 

Funding based on 

prudent financial 

norms (Rs. Lakhs) 

Full Project Scenario – Funding 

based on borrowing capacity 

and with reform implementation 

(Rs.Lakhs) 

Loan Amount 4971.60 764.61 

External Support 3119.64 7904.93 

ULB Contribution 1059.18 480.74 

Public Contribution 859.29 859.29 

Project cost 10009.56 10009.56 

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-15

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-16 

% of loan on Project 

cost 49.66% 

TNUIFSL 


7.64% 

Borrowing Capacity of the ULB is 15.38 % of the loan required for implementation of all 

the projects identified under CIP 

As seen from the above table, the ULB can contribute only Rs.480.74 Lakhs against 

the requirement of Rs.1059.18 Lakhs on account of reform implementation. The 

ULB’s capability to borrow is only Rs.764.61 Lakhs against the loan requirement of 

Rs.4971.60 Lakhs. Total external support required would be Rs. 7904.93 Lakhs in 

order to implement all the identified projects envisaged under CIP.

Dharapuram 

Table No 19 L: Full Project Cash Flow ,With FULL PROJECT WITHOUT Reforms with additional external support 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

Opening Balance (A) 0.00 -0.58 -11.30 -48.97 -142.18 -249.07 -368.70 -503.36 -653.13 -826.88 -1024.15 -1245.57 -1493.51 -1771.10 






Monthly User Charges from 

5 UGD 0.00 0.00 0.00 0.00 122.50 124.26 126.04 127.85 129.68 131.54 133.57 135.63 137.73 139.86 177.53 


6 Additional UGD Connections 0.00 0.00 13.84 14.06 14.20 15.00 15.22 15.44 15.65 15.87 17.39 17.61 21.39 21.74 22.08 

Total Inflow (B) 55.85 1785.05 1912.86 1658.33 326.55 371.51 344.74 326.60 655.04 573.41 672.33 684.08 640.74 824.16 884.00 


1 Project Capex 55.85 1785.05 1899.01 1644.27 189.85 232.25 203.48 183.32 509.71 426.00 521.37 530.84 481.62 662.56 684.39 



3 Interest) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.84 5.82 12.03 


Net Cash Flow (B-C)= D 0.00 -0.58 -10.72 -37.66 -93.21 -106.89 -119.63 -134.66 -149.77 -173.75 -197.27 -221.42 -247.94 -277.58 -281.41 

Closing Balance (A+D)=E 0.00 -0.58 -11.30 -48.97 -142.18 -249.07 -368.70 -503.36 -653.13 -826.88 -1024.15 -1245.57 -1493.51 -1771.10 -2052.51 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Dharapuram 

Table No 19 M : Financial Operating Plan- With FULL PROJECT WITHOUT Reforms with additional external support 

2008-09 

2009-10 

2010-11 

2011-12 


2012-13 

2013-14 

Particulars 



Property Tax 153.51 155.63 157.77 159.95 162.15 164.47 166.83 169.22 171.65 174.11 221.05 224.46 227.93 231.45 235.03 

Other Tax 16.76 17.60 18.48 19.40 20.37 21.39 22.46 23.58 24.76 26.00 27.30 28.66 30.09 31.60 33.18 




Other Income 

User Charges from SWM 

72.00 79.20 87.12 95.83 105.42 115.96 127.55 140.31 154.34 169.77 186.75 205.42 225.97 248.56 273.42 

User Charges from UGD 

Initial deposit for new UGD 

0.00 0.00 0.00 0.00 122.50 124.26 126.04 127.85 129.68 131.54 133.57 135.63 137.73 139.86 177.53 

Connections 0.00 0.00 13.84 14.06 14.20 15.00 15.22 15.44 15.65 15.87 17.39 17.61 21.39 21.74 22.08 















Overall Closing Balance (D+E)=F 90.01 129.79 207.89 301.53 290.43 444.87 568.26 694.57 826.44 935.61 1049.22 1142.56 1212.55 1260.28 1308.88 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Table No 19 N : Calculation of Debt Service Coverage Ratio (DSCR) With FULL PROJECT WITHOUT REFORMS with additional external support 

Dharapuram 

YoY DSCR Rs. in Lakhs 

2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2008-09 

Particulars 

Net Surplus 25.15 15.63 24.81 45.22 -13.06 18.34 1.22 -8.22 -15.76 -36.15 -33.80 -57.63 -80.42 -105.57 -100.96 

Debt Repayment of New loans 24.44 28.02 30.41 30.41 30.41 22.39 17.08 13.76 0.00 0.00 0.00 0.00 2.84 5.82 12.03 

YOY DSCR 1.03 0.56 0.82 1.49 -0.43 0.82 0.07 -0.60 NA NA NA NA -28.34 -18.15 -8.39 

Average DSCR 0.39 

Minimum DSCR -0.60 

Maximum DSCR 1.49 

Cumulative DSCR 

Cumulative Net Surplus (A) 166.63 265.95 355.74 419.28 428.00 446.34 454.60 450.73 434.96 398.81 365.01 307.38 226.96 121.39 20.43 

Cumulative ULB Cn (B) 52.17 135.87 200.86 219.17 240.96 240.96 247.99 252.34 252.34 252.34 252.34 252.34 252.34 252.34 252.34 

Net Cumulative Surplus 114.45 130.08 154.89 200.11 187.05 205.39 206.60 198.38 182.62 146.47 112.67 55.04 -25.38 -130.95 -231.91 

Cumulative Debt repayment obligation 

(New +Old) 24.44 52.46 82.87 113.28 143.69 166.08 183.17 196.92 196.92 196.92 196.92 196.92 199.76 205.58 217.61 

Cumulative DSCR 4.68 2.48 1.87 1.77 1.30 1.24 1.13 1.01 0.93 0.74 0.57 0.28 -0.13 -0.64 -1.07 




2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Dharapuram 

Table No 19 P: Full Project Cash Flow With FULL PROJECT WITH REFORMS with additional external support 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 





3 Exterbnal Support 3.68 1295.54 1440.85 1202.69 168.07 212.27 168.43 152.58 431.84 343.28 456.32 451.96 413.96 560.16 603.30 


Monthly User Charges 

5 from UGD 0.00 0.00 0.00 0.00 122.50 124.26 126.04 127.85 129.68 164.42 166.97 169.54 172.16 174.82 221.91 


Additional UGD 

6 Connections 0.00 0.00 13.84 14.06 14.20 17.20 17.45 18.45 18.71 18.97 20.79 21.05 24.88 25.29 25.69 

Total Inflow (B) 55.85 1785.05 1912.86 1658.33 326.55 373.70 346.96 329.61 658.10 609.39 709.12 721.43 678.67 862.67 931.99 


1 Project Capex 55.85 1785.05 1899.01 1644.27 189.85 232.25 203.48 183.32 509.71 426.00 521.37 530.84 481.62 662.56 684.39 



3 Interest) 0.00 9.18 18.75 30.07 31.55 33.71 40.27 46.14 55.06 59.63 67.06 74.59 82.38 89.88 96.15 



Closing Balance 

(A+D)=E 0.00 -9.76 -39.23 -106.97 -231.74 -370.15 -527.82 -705.61 -907.38 -1104.79 -1332.33 -1590.99 -1880.55 -2203.69 -2521.23 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Dharapuram 

Table No 19 Q : Financial Operating Plan - With FULL PROJECT WITH REFORMS with additional external support 

2008-09 

2009-10 

2010-11 

2011-12 


2012-13 

2013-14 

Particulars 



Property Tax 153.51 155.63 157.77 159.95 162.15 205.63 208.58 211.57 214.60 217.68 276.31 280.57 284.91 289.31 293.79 

Other Tax 16.76 17.60 18.48 19.40 20.37 21.39 22.46 23.58 24.76 26.00 27.30 28.66 30.09 31.60 33.18 




Other Income 72.00 79.20 87.12 95.83 105.42 115.96 127.55 140.31 154.34 169.77 186.75 205.42 225.97 248.56 273.42 

User Charges from SWM 0.00 0.00 0.00 17.26 17.50 44.38 45.01 45.66 50.94 51.67 59.63 60.55 61.49 68.68 69.74 



0.00 0.00 0.00 0.00 122.50 124.26 126.04 127.85 129.68 164.42 166.97 169.54 172.16 174.82 221.91 

Connections 0.00 0.00 13.84 14.06 14.20 17.20 17.45 18.45 18.71 18.97 20.79 21.05 24.88 25.29 25.69 










Debt Repayment for existing 

loans 24.44 28.02 30.41 30.41 30.41 22.39 17.08 13.76 0.00 0.00 0.00 0.00 0.00 0.00 0.00 






2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Table No 19 R : Calculation of Debt Service Coverage Ratio (DSCR) With FULL PROJECT WITH REFORMS with additional external support 

Dharapuram 

YoY DSCR Rs.in Lakhs 

2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2008-09 

Particulars 

Net Surplus 25.15 16.51 24.81 62.49 21.83 113.61 98.53 91.91 65.67 72.08 123.30 95.82 82.00 49.14 84.82 


YOY DSCR 1.03 0.44 0.50 1.03 0.35 2.02 1.72 1.53 1.19 1.21 1.84 1.28 1.00 0.55 0.88 


Minimum DSCR 0.35 


Cumulative DSCR Rs.in Lakhs 

Net Cumulative Surplus 114.45 130.96 155.77 218.25 240.08 353.69 452.22 544.13 609.80 681.88 805.18 901.00 983.00 1032.14 1116.96 

Cumulative Debt repayment 

obligation (New +Old) 24.44 61.64 110.80 171.28 233.25 289.35 346.71 406.61 461.67 521.30 588.36 662.94 745.32 835.21 931.36 

Cumulative DSCR 4.68 2.12 1.41 1.27 1.03 1.22 1.30 1.34 1.32 1.31 1.37 1.36 1.32 1.24 1.20 




2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

TNUIFSL 


19.4.4 Sustainable Investment Scenario WITH 

Reforms 

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 with external support and borrowings. 

Implications of this investment in terms of external support required, borrowing 

capacity of the ULB and the resultant debt service commitment, and impact on O&M 

of new projects are worked out. The outcome of this scenario will give an indication 

of the actual level of investment sustainable by the municipality with external support. 

The Capital Investment for various projects in sustainable scenario is shown in Table 

19 T 

Table 19 T Capital Investment Plan- Sustainable Scenario 

Project Sector Total Investment(Rs.in Lakhs) 

Water Supply 639.27 

UGD 4254.17 

Sanitation 23.22 

Storm Water Drainage 0.00 

Solid Waste Management 367.72 


Transportation 1456.40 

Street Lighting 123.77 

Socio-Economic Infrastructure 443.63 

TOTAL CAPEX 7308.19 

T 

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Report 

19-17

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-18 

TNUIFSL 


The List of projects not considered (Roads and SWD) under sustainable scenario are 

given in Table-19 U 

Table 19-U: List of projects not considered for Sustainable Scenario 

Project Name 

Constructing Storm Water Drainage 

lines proposed for a length of 22.71 

Kms 

Constructing additional Storm water 

Drainage lines for 97.48 Km 

(Considering only 50% of the 

demand for the phase year 2017 to 

2022 i.e 48.74 Km 

Constructing new 15.5 Km BT road 

by 2012, 13.4 Km by 2017 and 15.5 

by 2022 

**Project Cost before escalation 

(Rs.in Lakhs) 

375.75 

885.15 

232.50 

Total Project Cost 1493.40 

** Project Cost when implemented with escalation would come to Rs. 27.01 Crores 

19.4.4.1 Sustainable Investment Scenario WITH Reforms and 

Funding pattern based on prudent financial norms 

The cash flows from the new projects is shown in Table 19 V and the financial impact 

in implementing sustainable projects through additional resources generated on 

account of reforms suggested and as per the prudent financial norms is given in Table 

19 W


TNUIFSL 



The ULB faces constraints in meeting the debt repayment commitments as indicated 

by the Debt Service Coverage ratio (DSCR) which falls below the prudent financial 

norms. The same has been shown in Table 19 X. 

To address this issue, the ULB would require additional external support as the 

capacity of the ULB to borrow under this scenario would be only around Rs.5.33 

Crores as against the loan requirement of Rs. 33.50 Crores. The same has been 

discussed in heading 19.4.4.2 

19.4.4.2 Sustainable investment Scenario WITH Reforms and 

with additional external support 

The cash flows from new projects is shown in Table 19-Y and the financial impact in 

implementing the Full projects WITH reforms but with additional external support is 

given in Table 19- Z. 



The ULB would be able to borrow Rs. 5.33 crs against the requirement of Rs.36.41 

crs 

With the borrowings of Rs.5.33 crs, the ULB would be able to meet its debt 

repayment commitments as indicated by the Debt Service Coverage ratio (DSCR). 

The same has been shown in Table 19 AA. This is possible only due to strong 


Total external support required would be Rs. 52.93 Crs in order to implement 

projects envisaged under sustainable scenario. 

T 

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Final 

Report 

19-19

T 

N 

U 

D 

P 

I 

III 

Final 

Report 

19-20 

TNUIFSL 


The table below shows the funding and borrowing capacity of the ULB under 

“Sustainable Scenario WITH Reforms” 

Table 19 AB : Funding based on prudent financial norms Vs Funding 

possibility based on borrowing capacity – Sustainable Investment Scenario 

WITH Reforms 

Particulars 

Sustainable Scenario- 

Funding based on prudent 

financial norms (Rs.in Lakhs) 

Sustainable scenario – 

Funding based on 

borrowing capacity 

Loan Amount 3350.33 533.76 

External Support 2309.52 

(Rs.in Lakhs) 

5293.73 



Project cost 7308.19 7308.19 

% of loan on Project 

cost 45.84% 

7.30% 

Borrowing Capacity of the ULB is 15.93 % of the loan required for investments under 

sustainable scenario 

As seen from the above table, the ULB able to contribute Rs.621.40 Lakhs out of the 

requirement of Rs.789.04 Lakhs on account of reform implementation. The ULB’s 

capability to borrow is only Rs.533.76 Lakhs against the loan requirement of 

Rs.3350.33 Lakhs. Total external support required would be Rs. 5293.73 Lakhs in 

order to implement all the identified projects envisaged under this Sustainable 

scenario.

Dharapuram 

Table 19 V -Full Project Cash Flow of Identified New projects in Sustainable Scenario- As per Prudent Financial norms 

Rs. In Lakhs 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 








5 from UGD 0.00 0.00 0.00 0.00 122.50 124.26 126.04 127.85 129.68 164.42 166.97 169.54 172.16 174.82 221.91 



6 Connections 0.00 0.00 13.84 14.06 14.20 17.20 17.45 18.45 18.71 18.97 20.79 21.05 24.88 25.29 25.69 

Total Inflow (B) 55.85 1785.05 1912.86 1658.33 326.55 272.99 241.22 218.58 541.51 486.98 406.34 403.51 344.85 282.00 322.28 


1 Project Capex 55.85 1785.05 1899.01 1644.27 189.85 131.54 97.74 72.28 393.13 303.59 218.59 212.92 147.80 81.89 74.68 



3 Interest) 0.00 68.29 150.37 163.62 172.49 186.64 215.23 235.86 345.24 366.89 393.32 419.40 431.86 429.66 417.71 




(A+D)=E 0.00 -68.87 -229.96 -431.24 -696.95 -988.28 -1318.90 -1682.24 -2167.72 -2663.45 -3205.69 -3791.32 -4405.80 -5036.98 -5629.80 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Dharapuram 

Table No.19 W : Financial Operating Plan - Sustainable Scenario - Prudent Financial Norms 

2008-09 

2009-10 

2010-11 

2011-12 


2012-13 

2013-14 

Particulars 



Property Tax 153.51 155.63 157.77 159.95 162.15 205.63 208.58 211.57 214.60 217.68 276.31 280.57 284.91 289.31 293.79 

Other Tax 16.76 17.60 18.48 19.40 20.37 21.39 22.46 23.58 24.76 26.00 27.30 28.66 30.09 31.60 33.18 




Other Income 72.00 79.20 87.12 95.83 105.42 115.96 127.55 140.31 154.34 169.77 186.75 205.42 225.97 248.56 273.42 




0.00 0.00 0.00 0.00 122.50 124.26 126.04 127.85 129.68 164.42 166.97 169.54 172.16 174.82 221.91 

Connections 0.00 0.00 13.84 14.06 14.20 17.20 17.45 18.45 18.71 18.97 20.79 21.05 24.88 25.29 25.69 















Overall Closing Balance (D+E)=F 109.83 -15.25 -53.81 -68.99 -235.35 -225.65 -153.65 -146.61 -297.29 -352.96 -422.77 -485.86 -592.41 -699.15 -769.90 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Table No 19 X : Calculation of Debt Service Coverage Ratio (DSCR) Sustainable Scenario- Prudent Financial Norms 

YOY DSCR Rs.in Lakhs 

2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2008-09 

Particulars 

Net Surplus 44.97 -61.13 -18.23 56.98 -1.34 54.47 93.81 89.00 25.91 79.71 93.07 104.53 96.95 93.77 120.45 


YOY DSCR 1.84 -0.63 -0.10 0.29 -0.01 0.26 0.40 0.36 0.08 0.22 0.24 0.25 0.22 0.22 0.29 





Cumulative Net Surplus (A) 166.63 265.95 355.74 436.54 462.77 586.29 704.27 815.62 924.67 1051.43 1208.53 1350.83 1479.89 1600.06 1751.27 

Cumulative ULB Cn (B) 32.36 192.81 300.83 324.65 352.22 421.27 445.44 467.79 550.92 597.97 662.00 699.77 731.88 758.27 789.04 


Cumulative Debt repayment obligation 

(New +Old) 24.44 120.75 301.53 495.56 698.45 907.49 1139.81 1389.42 1734.66 2101.55 2494.87 2914.28 3346.14 3775.80 4193.51 





2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Dharapuram 

Table 19 Y - Full Project Cash Flow of Identified New projects in Sustainable Scenario- Additional External Support 

Rs. In Lakhs 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 








5 from UGD 0.00 0.00 0.00 0.00 122.50 124.26 126.04 127.85 129.68 164.42 166.97 169.54 172.16 174.82 221.91 



6 Connections 0.00 0.00 13.84 14.06 14.20 17.20 17.45 18.45 18.71 18.97 20.79 21.05 24.88 25.29 25.69 

Total Inflow (B) 55.85 1785.05 1912.86 1658.33 326.55 272.99 241.22 218.58 541.51 486.98 406.34 403.51 344.85 282.00 322.28 


1 Project Capex 55.85 1785.05 1899.01 1644.27 189.85 131.54 97.74 72.28 393.13 303.59 218.59 212.92 147.80 81.89 74.68 


Debt Servicing (Principal 

3 + Interest) 0.00 6.22 12.60 17.71 20.66 23.26 29.97 33.15 46.13 51.14 58.66 66.03 70.33 69.58 65.60 


Net Cash Flow (B-C)= 

D 0.00 -6.80 -23.32 -55.37 -113.88 -127.95 -145.36 -160.63 -186.38 -179.98 -207.58 -232.26 -252.95 -271.10 -240.71 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23


(A+D)=E 0.00 -6.80 -30.12 -85.49 -199.37 -327.33 -472.69 -633.31 -819.69 -999.67 -1207.24 -1439.50 -1692.45 -1963.55 -2204.26

Dharapuram 

Table No 19 Z : Financial Operating Plan - Sustainable Scenario- Additional External Support 

2008-09 

2009-10 

2010-11 

2011-12 


2012-13 

2013-14 

Particulars 



Property Tax 153.51 155.63 157.77 159.95 162.15 205.63 208.58 211.57 214.60 217.68 276.31 280.57 284.91 289.31 293.79 

Other Tax 16.76 17.60 18.48 19.40 20.37 21.39 22.46 23.58 24.76 26.00 27.30 28.66 30.09 31.60 33.18 




Other Income 72.00 79.20 87.12 95.83 105.42 115.96 127.55 140.31 154.34 169.77 186.75 205.42 225.97 248.56 273.42 




0.00 0.00 0.00 0.00 122.50 124.26 126.04 127.85 129.68 164.42 166.97 169.54 172.16 174.82 221.91 

Connections 0.00 0.00 13.84 14.06 14.20 17.20 17.45 18.45 18.71 18.97 20.79 21.05 24.88 25.29 25.69 










Debt Repayment for existing 

loans 24.44 28.02 30.41 30.41 30.41 22.39 17.08 13.76 0.00 0.00 0.00 0.00 0.00 0.00 0.00 






2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Table No 19 AA : Calculation of Debt Service Coverage Ratio (DSCR) Sustainable Scenario- Additional extermal support 

YOY DSCR Rs.in Lakhs 

2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2008-09 

Particulars 

Net Surplus 44.97 4.44 24.81 45.32 4.44 83.46 93.51 91.73 42.83 62.80 122.33 95.22 94.78 98.85 131.10 


YOY DSCR 1.84 0.13 0.58 0.94 0.09 1.83 1.99 1.96 0.93 1.23 2.09 1.44 1.35 1.42 2.00 






Cumulative Debt repayment 

obligation (New +Old) 24.44 58.68 101.69 149.80 200.88 246.53 293.59 340.49 386.63 437.77 496.43 562.45 632.79 702.37 767.96 





2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

19.5 Conclusion 

TNUIFSL 


Prudent Financial Norms of funding of projects under Full Project Investment 

scenario and Sustainable Investment Scenario and funding possibilities of Identified 

Projects under Full Investments Scenario are summarized in Table 19 AC below: 

Table 19AC: - Comparative statement for the full project scenario vis-à-vis sustainable 

scenario:- 

Project Sector 

Full Project Scenario - 

**Project Cost before 

escalation (Rs.in Lakhs) 

Sustainable Scenario - 

**Project Cost before 

escalation (Rs.in Lakhs) 

Water Supply 535.00 535.00 

UGD 3672.00 3672.00 

Sanitation 17.00 17.00 

Storm Water 

Drainage 

Solid Waste 

Management 



1260.90 0.00 

281.77 281.77 

1177.20 944.70 

Street Lighting 82.92 82.92 



339.20 339.20 

TOTAL CAPEX 7365.98 5872.58 

** Project Cost when implemented with escalation would come to 

a. Full Project Scenario –Rs.10009.56 Lakhs 

b. Sustainable Scenario- Rs. 7308.19 Lakhs. 

T 

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Final 

Report 

19-21

T 

N 

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Final 

Report 

19-22 

TNUIFSL 


Table 19 AD: FULL PROJECT SCENARIO AND SUSTAINABLE SCENARIO -Funding 

pattern based on prudent financial norms 

Particulars 

Total Project 

Cost 

ULB 

Contribution 

Public 

Contribution 

Full Project Scenario ( Rs.in 

Lakhs) – NORMS 

Sustainable Scenario ( 

Rs.in Lakhs) – NORMS 

10009.56 7308.19 

1059.18 789.04 

859.29 859.29 

Loan 4971.16 3350.33 


Table 19 AE: FULL PROJECT SCENARIO AND SUSTAINABLE SCENARIO -Funding 

pattern based on borrowing capacity 

Particulars 


WITH reforms- Funding 

based on borrowing 

capacity (Rs.in Lakhs) 

Total Project Cost 10009.56 7308.19 

Means of Finance 



Loan 764.61 533.76 


O&M 

Able to meet O&M costs of 

projects identified under 

CIP- Full Projects 

Sustainable Scenario WITH 

Reforms- Funding based on 

borrowing capacity (Rs.in Lakhs) 

Able to meet O&M costs of project 

identified under Sustainable scenario

Average 1.57 1.72 

Minimum 1.03 1.06 

Maximum 4.68 5.49 

TNUIFSL 


1. The ULB faces constraint in meeting the O & M expenses for identified projects under 

CIP if the reforms suggested are not implemented. To address this issue it is imperative 

for the ULB to undertake all the reforms suggested which would help to meet the O&M 

of New projects and also to contribute some own share of contribution to the projects 

identified. 

2. The ULB would face constraints in debt repayment on account of projects to be 

implemented both under Full Project scenario and Sustainable scenario without large 

external support and full reform implementation. The ability of ULB to borrow is limited 

against the loan requirement for full project implementation and even for projects 

identified under sustainable scenario. The only way to address the issue is full reform 

implementation coupled with strong external support 

3. In case of Full Project scenario, even after undertaking the reforms, the ULB could 

contribute only Rs.480.74 Lakhs against the requirement of Rs.1059.18 Lakhs. The 

balance needs to be supported by strong external support. 

4. For implementing all the projects identified under CIP, ULB’s ability to borrow is only 

15.38% (if all suggested reforms are undertaken). Under sustainable scenario, the ULB’s 

ability to borrow with full reform implementation is about 15.98% of the loan 

requirements of Rs. 33.50 crs. Thus implementation of all reforms suggested leads to 

increase in borrowing capacity of the ULB which improves the ULB’s possibilities of 

undertaking all the projects required for improvement of Dharapuram town 

T 

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Final 

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19-23

T 

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Final 

Report 

19-24 

19.6 Recommendations 

TNUIFSL 


1. It is suggested that all reforms outlined in the Reform Implementation Schedule needs to 

be implemented fully in order to fund the projects envisaged both under Full Project 

Investment Scenario and Sustainable Investment scenario. The time frame envisaged 

under Reforms Implementation Schedule in Figure 19-1 needs to be firmly adhered to. 

2. External support is required for full project implementation and sustainable project 

implementation. The amount of external support required varies between Rs.52.93 crs for 

sustainable scenario with reforms, Rs.79.04 crs for full project scenario with reforms 

3. Full reform implementation by the ULB backed by strong external support is a must for 

bringing in projects required for improving the town over the next 15 years 

4. The reform efforts of the ULB need to be supported and rewarded by financial assistance 

from funding agencies and strong external support as indicated in the Table above in 

order to implement all projects suggested under CIP. 

5. The ULB would need to bring in Rs.621.40 Lakhs over the 15 year period to meet its 

share of contribution towards projects to be implemented under sustainable scenario. This 

is possible only if ULB implements all the reforms suggested and highlighted in this 

report within the scheduled time frame.

DHARAPURAM 

Current 

Reforms 

Status 2008-09 

Property Tax 

100% (current 

collection 

90% Collection Efficiency efficiency) 

Mandatory Implementation of 

Revision of Property Tax once Once in 10 

in every five years is required years 

Digitization of the property 

maps through GIS Not initiated 

2009-10 

2010-11 

Figure 19 - 1: Reforms Implementation Schedule for Dharapuram 

Figure 19 - 1: Reforms Implementation Schedule 

Computerization of Property 

tax records Initiated 

Introducing alternate methods Currently in 

of tax payment 

Municipal office 

(ECS/EFT/Online Payment) 

Other Reforms in property 

taxes as mentioned in 

only 

Chapter 18 of this report 

Water Supply 

Service coverage of water 

connections to be increased 

Limited extent 

from current 52.40% to 85% 

Revision of Water supply 

charges and initial deposit for 

52% 52% 56% 59% 62% 65% 69% 73% 77% 81% 

new water connection Ad hoc basis 

2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

85% 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Reforms 

One time payment options for 

monthly water charges Not done 

Incentive and penalty structure 

for payment of water taxes and 

charges. Not done 

Water Leakage Audit for Unaccounted 

for Water (UFW) Not done 

Energy Audit Not initiated 

Periodic maintenance of Water 

supply systems 

Current 


Ad hoc 

maintenance 

Periodic Training to Water 

Supply Staff Regularly 

Privatization in routine 

maintenance relating to water 

supply Not done 

Sewerage and 

Sanitation 

Privatization of maintenance 

of sewerage system can be 

considered to reduce the NA 

Revision in Sewer Monthly 

user charges NA 

Revision in initial deposit for 

new sewer connections NA 

Periodic maintenance of 

Sewer supply systems NA 

2009-10 

2010-11 


2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Current 

Reforms 


Annual Maintenance Contract 

for Sewage Pumping Stations 

and Sewage Treatment Plants 

can be adopted. NA 

Incentive and penalty 

structure for payment of 

Sewer taxes and charges. NA 

Periodic technical training to 

its engineering cell is required 

in O&M of Sewage Treatment 

Plant, Pumping Stations and 

Sewer Networking System. NA 

Solid Waste 

Management 

Door to door collection of 

garbage at household level 

and segregation of waste at 

source 

Coverage for all 

wards is done 

with respect to 

door to door 

collection only 

Private Sponsorship of bins 

for waste segregation at 

source Not done 

2009-10 

2010-11 


2011-12 

Introduction of user charges 

for Non-Domestic assesses Not done s 

Introduction of user charges 

for Domestic assesses Not done 

Annual Maintenance Contract 

for Vehicles used in SWM Not done 

Potential for getting carbon 

credit benefit through the 

Clean Development 

Mechanism (CDM) need to be 

studied in making a 

comprehensive solid waste 

management scheme Not undertaken 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Reforms 

Periodic Training to Public 

Health Staff Regularly 

Roads, Traffic & 


Relaying Bitumen roads once 

in three years with patch 

works to be undertaken based 

on the need in between years Adhoc basis 


Meeting the norms of one 

pole per 30 meters by 2012 27 meters 

Energy Audit Studies Not initiated 

Private parties can be 

involved for financing, 

operation and maintenance of 

energy efficient street light 

projects to reduce the cost Not done 

Current 


Municipal Assets 

Creation and updating the 

Comprehensive asset register Not 

with regard to land and Comprehensive 

Valuation of assets and 

liabilities of the Municipality Not done 

Periodic maintenance of 

Social Infrastructure Ad hoc 

Accounting Reforms 

Comprehensive Budgeting 

incorporating O&M costs of 

various assets Not Done 

Periodic Training to 

Accounting Staff Regular training 

Finalisation of accounts and 

completion of audit of 

accounts with in that specific Not done 

Zero based budgeting would 

need to be carried out for 

continual monitoring of Not done 

2009-10 

2010-11 


2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

Particulars Current Status Assistance 

2008-09 

Water Supply 

construction of 4.5 m dia infilteration well 

supply and laying of connecting pipe 

construction of 6X8 m dia collection well cum 

pumphouse 

supply erection of turbine pumpset 

supply and laying of pumping and branch 

mains 

construction of 5ll service reservoir 

supply and laying of distribution system 

provision of obtaining power supply 

Setting up 3 lakh capacity OHT by 2017 and 

one more of 3 lakh capacity by 2022 

Sewerage and Sanitation 

UGD for Dharapuram Municipality 

Maintenance for six toilets 

Construction of three new toilets at 

Kamarajapuram, Chithravuthan palayam and 

Udurnalai Kottapalli palayam. 

DHARAPURAM 

Identified during OWG 

meeting and to be 

implemented in 2009-10 ULB 
























implemented in 2017-18 

and 2022-23 ULB 

DPR prepared by TWAD TWAD, ULB 

Technical Financial 


meeting 


meeting to be 

implemented from 2013- 

ULB ULB 

14 to 201-16 ULB ULB 

Government/Financial 

Institution. ULB 


















Institution. ULB, Public 

Contribution 

Figure 19-2 :Project Implementation Schedule for Dharapuram 

Figure 19-2 :Project Implementation Schedule 

2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23


2008-09 


Constructing Storm Water Drainage lines 

proposed for a length of 22.71 Kms 

Constructing additional Storm water Drainage 

lines for 97.48 Km (Considering only 50% of 

the demand for the phase year 2017 to 2022 

i.e 48.74 Km 

Roads, Traffic & 


Constructing new 15.5 Km BT road by 2012, 

13.4 Km by 2017 and 15.5 by 2022 

Roads works proposed for a length of 11.48 

Km 

Resurfacing of roads after Implementing UGD 

for a length of 27.08 ( Cost for relaying works 

in Phase I is included in the UGD ) 

Works proposed under 

UIDSSMT ULB 

Based on Demand Supply 

Gap Analysis to be 

implemented from 2018- 

19 to 2022-23 ULB 


Gap Analysis and to be 

implemented in phases ULB 

Works proposed under 

UIDSSMT and to be 


& 2017-18 

Based on Rapid Urban 

Assessment and to be 


& 2019-20 ULB 

Converting 2 Km earthen road into BT road Based on Rapid Urban 



Relaying BT roads after each third year of its 

implementation 2 Kms 

Relaying new roads after each third year of its 

implementation15.5 Kms 

Relaying new roads after each third year of its 

implementation 13.4 Kms 


Assessment 


Assessment 


Assessment 

ULB 

ULB 

ULB 

Support from 

Government , Financial 

Institution and ULB 

Support from 

Government , Financial 

Institution and ULB 

Support from 


institution, ULB 

Contribution 

Support from 



Contribution 

Support from 



Contribution 

Support from 



Contribution 

Support from 



Contribution 

Support from 



Contribution 


2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23


2008-09 

Traffic Signal in Pollachi road 

Traffic Signal in Amaravathi bye-pass 







Junction Improvement in five corner junction Identified during OWG 



Junction Improvement in Pookadai junction 



Protective gear for Conservancy worker 

(Workers will get safety gear once in two 

years) 

Procuring Separate bins for Waste 

Segregation at source for each household 

(with private sponsorship) 

Contribution to Regional Municipal Solid 

Waste Management 


Installing 313 energy saving CFL lamps by 

2012, 445 by 2017 and 516 by 2022 

Installation of voltage controller& timers 

Installation of electronic chokes in place of 

conventional copper chokes and 36 w tube 

lights 




Master Plan proposals 

and to be implemented in 

2014-15 ULB 

Proposal identified during 

OWG and to be 

implemented in phases 

ULB 


OWG; (Additional 

households will be taken 

care by Municipality from 

General Fund) and to be 

implemented in phases 

ULB 


OWG; 

ULB 


Gap Analysis and to be 

implemented in phases PSP ULB/PSP 



implemented in 2008-09 PSP ULB/PSP 



implemented in 2009-10 PSP ULB/PSP 

Support from 



Contribution Support from 



Contribution 

Support from 



Contribution 

Support from 



Contribution Support from 



Contribution 

Support from 

Government and ULB 

Support from 


Support from 



2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23


2008-09 

Socio-Economic Infrastructure 

Improving existing class rooms for four 

schools 

Water supply arrangements to NCP School 

Area 

Developing 16 approved layouts into parks 

and playgrounds 

Setting up Community hall near Travellers 

Bungalow land at park road near Anjeneyar 

koil 



Weekly Market improvement Scheme 


Dwelling Unit Upgradation 

Community Toilet construction 



implemented to 2009-10 



ULB ULB 




implmented in phases ULB 








meeting 


meeting 


meeting 


meeting 


meeting 

Providing Street light arrangements 


to meeting 

Kamarajapuram and Devendra street 

ULB 

ULB 

ULB 

ULB 

ULB 

ULB 

Support from 


Support from 


Support from 


Support from 


Support from 


Support from 


Support from 


Support from 


Support from 



2009-10 

2010-11 

2011-12 

2012-13 

2013-14 

2014-15 

2015-16 

2016-17 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23

City Development Plan - Municipal

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