Gudiyattam Gudiyattam Town - Municipal

Chapter ñ14 Final Report: Gudiyattam Municipality
Operating Ratio 1.12 1.59 1.37
Debt Service Ratio 32% 89% 66%
Category 3
Long Term (2009-10 to 2028-
29)
Operating Ratio 1.12 1.59 1.31
Debt Service Ratio 13% 89% 49%
Category 3
Note : 1 ñ Financially Sound; 2 ñ Financially Fragile; 3 ñ Financially Insolvent
It may be observed that the Municipality is financially very fragile both in the short
term and long term. The Municipality is unable to bear the high operation &
maintenance expenses and interest cost on borrowings resulting in operating ratio >
1% and Debt Service Ratio > 30%.
14.12 INFERENCE.
The investment capacity of Gudiyatham Municipality on ëAs is Where Basisí works
out to Rs. 3973 lacs.
The investment capacity of Gudiyatham Municipality works to Nil in case of
Scenario II (With Metur CWSS project) and Nil in case of Scenario III (Without
Metur CWSS project).
Thus it can be inferred that Gudiyatham Municipalityís financial position is weak
and is not in a position to undertake major projects like water supply
improvements and underground by way of borrowings on account of high
operation & maintenance expenses and interest cost.
Based on the above, it can be concluded that the Municipality based on its
financial position can undertake only smaller projects identified in the CCP as
given below :
S.No. Particulars Total Priority Funding By
A Physical Infrastructure Facilities L : G : M
I Bus Stand
a) Construction of New Bus Stand 300.00 B 90:00:10
II Street Lights
a) Proposed new lights 40.00 A 100% ULB
b) Retrofitting existing lights & energy saving devices 15.86 A ESCO
B Social Infrastructure Facilities
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