for expanded city municipal corporationerodecorporation.gov.in/pdf/erode cdp.pdf‘dedicated water...

TAMIL NADU URBAN INFRASTRUCTURE FINANCIAL SERVICES LIMITED (TNUIFSL)

City Development Plan

for Expanded Erode City Municipal Corporation

December 2013

Regd. Office: 403, IV Floor, Gala Argos, Near Harikrupa Towers, Gujarat College Road, Ahmedabad - 380 006. Tel.: 91-79-26423487, Fax: 91-79-26466652 E-mail: [email protected] Web: www.umc-global.com

FINAL REPORT

i

CONTENTS

CONTENTS .......................................................................................................................... i

EXECUTIVE SUMMARY ............................................................................................... iv ABBREVATIONS: ............................................................................................................. x 1 INTRODUCTION................................................................................................... 1 1.1 Background ............................................................................................................... 1

1.2 Progress so far ........................................................................................................... 2

2 CITY PROFILE ...................................................................................................... 3 2.1 City Overview ........................................................................................................... 3

2.2 Erode District ............................................................................................................ 3

2.3 Delineation of ECMC ............................................................................................... 6

2.4 Location and Linkages .............................................................................................. 8

2.5 Climate and Rainfall ................................................................................................. 8

2.6 Demography .............................................................................................................. 9

2.7 City Economy .......................................................................................................... 10

2.8 Land Use Planning .................................................................................................. 11

2.9 Physical constraints and Urban Sprawl .................................................................. 12

3 CITY ASSESSMENT: ANALYSIS OF THE EXISTING SITUATION ....... 14 3.1 Background ............................................................................................................. 14

3.2 Population Projection .............................................................................................. 14

3.3 Water Supply System .............................................................................................. 15

3.4 Sewerage & Sanitation System ............................................................................... 22

3.5 Storm Water Drainage ............................................................................................ 26

3.6 Solid Waste Management ....................................................................................... 27

3.7 Roads and Transportation ....................................................................................... 33

3.8 Street Lighting ......................................................................................................... 36

3.9 Basic Services for Urban Poor ................................................................................ 38

3.10 Education ................................................................................................................. 40

3.11 Health ...................................................................................................................... 40

3.12 Urban Environment ................................................................................................. 41

3.13 Tourism and Heritage .............................................................................................. 47

4 URBAN GOVERNANCE .................................................................................... 51 4.1 Administrative Structure ......................................................................................... 51

4.2 Reforms Initiated by the Municipal Corporation ................................................... 53

5 MUNICIPAL FINANCE ...................................................................................... 54 5.1 Introduction ............................................................................................................. 54

5.2 Overview of Financial Profile of ECMC................................................................ 56

Final Report – CDP for Expanded Erode City

CDP for Expanded Erode City Municipal Corporation ii

5.3 Revenue Income (Tax Revenue) ............................................................................ 57

5.4 Revenue Income (Non-Tax Revenue) .................................................................... 58

5.5 Revenue Income (Other Sources) ........................................................................... 59

5.6 Revenue Income (External Sources) ...................................................................... 59

5.7 Revenue Income (Own sources Vs External Sources) ........................................... 60

5.8 Revenue Expenditure .............................................................................................. 61

5.9 Income Distribution (Revenue and Capital Account) ............................................ 62

5.10 Expenditure Distribution (Revenue and Capital Account) .................................... 62

5.11 Financial Performance Indicators and Issues ......................................................... 63

6 POTENTIALS FOR DEVELOPMENT ............................................................ 66 6.1 Issues ....................................................................................................................... 66

6.2 Stakeholders Consultation ...................................................................................... 66

6.3 Visioning Exercise .................................................................................................. 67

6.4 SWOT Analysis....................................................................................................... 67

6.5 Present vs Future ..................................................................................................... 70

6.6 VISION 2042 .......................................................................................................... 71

6.7 Inputs required to achieve Vision 2042 .................................................................. 72

6.8 Growth Strategies .................................................................................................... 72

6.9 Environmental Concerns ......................................................................................... 75

7 PROJECTS IDENTIFICATION AND CAPITAL INVESTMENT

REQUIREMENTS ................................................................................................ 76 7.1 Overview ................................................................................................................. 76

7.2 Water Supply ........................................................................................................... 76

7.3 Sewerage and Sanitaion .......................................................................................... 79

7.4 Solid Waste Management ....................................................................................... 84

7.5 Roads and Transportation Projects ......................................................................... 89

7.6 Street Lighting ......................................................................................................... 95

7.7 Storm Water Drains................................................................................................. 97

7.8 Basic Services for Urban poor ................................................................................ 97

7.9 Urban Environment ................................................................................................. 97

7.10 Green Cover and Social Infrastructure ................................................................... 99

7.11 Heritage and Tourism ............................................................................................ 101

7.12 Urban Governance & Capacity Building ............................................................. 101

7.13 Commercial and Industrial Infrastructure ............................................................ 103

7.14 Investment Requirement ....................................................................................... 105

7.15 Projects to be implemented by Other Departments .............................................. 106

7.16 Projects to be implemented under PPP ................................................................. 106


CDP for Expanded Erode City Municipal Corporation iii

8 SUSTAINABLE DEVELOPMENT AND CLIMATE CHANGE ................ 109

9 REFORM AGENDA AND TECHNICAL ASSISTANCE NEEDS ............. 113 9.1 Capacity Building & Institutional Framework ..................................................... 113

9.2 E-Governance ........................................................................................................ 118

9.3 Asset Management ................................................................................................ 119

9.4 Suggested Reforms for Improving Financial Performance ................................. 123

9.5 Technical Assistance Needs .................................................................................. 127

10 Financial Operating Plan ................................................................................... 128 10.1 Introduction ........................................................................................................... 128

10.2 Financial Operating Plan for Expanded ECMC ................................................... 129

10.3 Financial Operating Plan – Major Assumptions .................................................. 129

10.4 Financial Operating Plan – Major Assumptions .................................................. 130

10.5 Identification of Projects and Phasing .................................................................. 138

10.6 Prioritising the Identified Projects ........................................................................ 140

10.7 Methodology ......................................................................................................... 140

10.8 Results of the FOP ................................................................................................ 141

10.9 Fund Requirement ................................................................................................. 141

11 ANNEXURES ...................................................................................................... 143 Annexure-1: Income & Expenditure: Trends & Projections (Revenue & Capital Acc) - 1 -

Annexure-2A: Overall Cash Flows ................................................................................. - 4 -

Annexure-2 B:Recovery Checks -Water Supply, Sewerage,Sanitation & Solid Waste - 5 -

Annexure-3: Model Organization Structure for ECMC ................................................. - 8 -

Annexure-4: Stakeholders Meeting held in ECMC ON 08-04-2013 ............................. - 9 -

Annexure-5 Minutes of Meeting held in ECMC on 24-06-2013 ................................. - 15 -

Annexure -6: Mom of draft final report held in TNUIFSL on 17-7-2013 ................... - 17 -

Annexure-7: MoM of revised draft meeting held in TNUIFSL on 11-09-13 .............. - 20 -

Annexure-8: MoM of Technical Committee meeting held in ECMC on 11-10-2013 - 24 -

Annexure-9: MoM of standing committee held in ECMC on 11-10-2013 .................. - 27 -

Annexure-10: MoM of Stakeholders meeting held in ECMC on 11-10-2013 ............. - 30 -

Annexure-11: Questioner for Vision Building Exercise ............................................... - 35 -

Annexure 11a - Vision building exercise conducted at ECMC on 8-4-2013............... - 37 -

Annexure-12: Compliance with JnNURM Revised Toolkit (2nd

Revn.-April 2013) .. - 65 -

Annexure-13: Land & Building Assets under ECMC .................................................. - 67 -

Annexure-14: Annual Rateable Value .......................................................................... - 72 -

Annexure-15: Newspaper clippings on Erode City Development Plan ....................... - 73 -


CDP for Expanded Erode City Municipal Corporation iv

EXECUTIVE SUMMARY

The need for this revised City Development Plan emerges in view of the recent

expansion of the city wherein four Grade III Municipalities, two Town Panchayats and

five Village Panchayats were merged with the erstwhile Erode Municipality to form the

Erode City Municipal Corporation (ECMC) and the need for a comprehensive holistic

Vision and strategic Plan for compliant with the requirements outlined under the toolkit

for preparation of revised CDPs formulated under the Jawaharlal Nehru National Urban

Renewal Mission (JnNURM) by the Ministry of Urban Development (MoUD),

Government of India (GoI).

The Ministry of Urban Development (MOUD), Government of India (GOI) is proposed

to include the Erode Corporation in its Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) programme. Now the Corporation proposes to prepare a City

Development Plan (CDP) for the erstwhile corporation and including the expanded areas

in the JNNURM programme and for signing an MOA with MoUD under JNNURM.

About the City

Erode district is located in the western part of Tamil Nadu. Erode District was formed in

1996 before which it was known as Periyar district. Earlier to that till September 1979,

Erode was part of Coimbatore District. Erode District is one of the industrialized districts

of the state of Tamil Nadu.

Erode is the head-quarter of Erode District. Rapid increase in the economic and industrial

activities, population growth, rise in per capita incomes and other such urban factors

have resulted in the formation of the Urban Agglomeration areas of Erode City, thereby

compelling the expansion of Erode Corporation to include nearby Municipalities/Town

Panchayats/Village Panchayats into its jurisdiction.

The town was constituted as a Municipality in the year 1871 and was elevated to Special

Grade during the year 1980 and upgraded as Corporation by merging Four (4) grade III

municipalities Two (2) Town Panchayat and Five (5) Village Panchayats. The total area

of the Corporation is 109.52 sq.km. It has been divided into four zones, which consist of

60 wards.

City Economy

Erode is well known for handloom, powerloom textile products and readymade garments

and hence it is called Loom City of India or Texvalley of India. Erode is also known as

“The Turmeric City” or “Yellow City”. Erode is the largest producer of turmeric in the

state and has one of the largest markets for coconut. It is famous also for rice cultivation

and oil mills, as well as for dairy products. It is also one of the largest coconut oil

producers in south India. Sugarcane and floriculture are an important source of income to

the people.

Demography & Population Projections

As per Census of India 2011, ECMC had a population of 4.98 lakhs. The future

requirements (i.e. for short, medium and long term) in terms of level of services and

infrastructure across all sectors is made by adopting the population projections done for


CDP for Expanded Erode City Municipal Corporation v

‘Dedicated Water Supply Scheme’ for ECMC. The population projections as per DPR

prepared for the Dedicated Water Supply Scheme is represented in the table below;

Year 2011 2015 2030 2045

Population 498121 5,35,000 7,00,000 9,05,000

CAGR 1.8% 1.8% 1.8%

Adopting the same CAGR of 1.8%, the population has been projected for the horizon

year of short, medium and long terms i.e. 2017, 2024 & 2042 respectively as shown in

the table below:

Plan Base Year Short Medium Long

Year 2012 2017 2024 2042

Projected Population 507,100 554,000 628,300 866,400

CAGR 1.8% 1.8% 1.8%

Projected Population of Erstwhile

Erode + 4 Municipalities

416,218 438,267 471,111 592,246

Other area 90,882 115,733 157,189 274,154

City Assessment: Sector wise Analysis & Growth Strategies

The status of various infrastructure components of the city in terms of the major issues

faced and the corresponding growth strategies identified for the short and long term

period of CDP is as below:

Water Supply

Issues: The major issues are absence of an integrated water supply system, declining ground

water levels, increased expenditure and power consumption, ground water pollution, etc.

Goals: The major goals are to create 100% water supply network within ECMC area, minimize

the system losses, achieve 100% metered connections as well as to create sufficient storage for

treated water.

Strategies: To achieve the above goals, the strategies adopted shall include tapping of raw water

from a pollution free source, continuous monitoring to ensure minimal losses, to carry out water

audit programs regularly, ensure 100% collection of water charges and create alternative sources

of water like through rain water harvesting technique.

Sewerage & Sanitation

Issues: The major issues are absence of UGSS, no sewage treatment facility, lack of adequate

public conveniences, nearly 1/4th

of the population doesn’t have individual toilet facility, etc.

Goals: The major goals are to create 100% coverage of sewerage network within ECMC area,

create 100% treatment capacity, develop a disposal quality monitoring system, aim for zero

defecation status and adopt sustainable waste water management practices.

Strategies: To achieve the above goals, the strategies adopted shall include preparation of

integrated city sanitation plan for ECMC, construct sewerage treatment plant, create public

awareness, and interception and diversion of Perumapllam Odai and Petchikaranpallam Odai

under National River Action Plan (NRAP) and pumping of untreated sullage to Lakkapuram for

treatment works.


CDP for Expanded Erode City Municipal Corporation vi

Storm Water Drainage

Issues: The major issues are problems of water logging, pollution in the Perumapllam Odai,

major portion of coverage consisting of open drains, discharge of debris and solid waste in open

drains and culverts causing blockage, etc.

Goals: The major goals are to effectively manage urban watershed to prevent flooding and

promote water resources conservation and preservation.

Strategies: To achieve the above goals, the strategies adopted shall include upgradation and

renovation of existing drains, public awareness to prevent throwing of garbage into the drains

and detailed design for storm water drainage of low lying areas.

Solid Waste Management

Issues: The major issues are the non-segregation of waste at sources including hospital waste,

low coverage of door to door waste collection, inadequate equipments and manpower,

unscientific disposal of Bio-medical waste and un-engineered dumping to name the few.

Goals: The major goals are to create environmentally sustainable waste management system,

100% efficiency of collection system, recycling and reuse of segregated waste and bio-medical

waste management.

Strategies: To achieve the above goals, the strategies adopted shall include segregation and

storage at source, systematic waste collection, transportation and disposal, minimum exposure of

waste & avoid multiple & manual handling and s Scientific Waste Disposal facility, as per the

MSW Rules, 2000 to name the few.

Roads & Transportation Planning

Issues: The major issues are the inadequate road network coverage, absence of proper road

hierarchy in existing road network, encroachments along the main roads, poor condition of roads,

absence of footpath, parking, etc.

Goals: The major goals are to improve accessibility in the city, create hierarchy of road network

and smooth traffic flow within the ECMC area.

Strategies: To achieve the above goals, the strategies adopted shall include improvisation of

road surface and undertaking regular maintenance, develop new roads / improve earthen roads to

BT roads (expanded areas), improve mobility and efficiency of road network by developing new

link roads, improving traffic junctions, and introducing proper traffic management systems,

identify & prioritize major junctions for interventions like Flyovers, Sub-ways, Foot Over-bridge

and create adequate parking in the ECMC area through PPP approach.

Financial Performance of ECMC

The capital account reveal a deficit for every year of the review period which shows

Capital investments are happening consistently and capital expenditure is exceeding the

capital income consistently. Even the revenue account shows a deficit over the review

period except for the last year. It is inferred that ECMC has substantial reserves to cater

to the extra spending in both the accounts.


CDP for Expanded Erode City Municipal Corporation vii

Sr. No. Items 2007-08 2008-09 2009-10 2010-11 2011-12

Rs.Crores

I Revenue Account

i Revenue Income 26.13 28.13 28.04 37.15 65. 44

ii Revenue

Expenditure 30.12 37.11 35.48 40.91 51.11

Surplus/deficit -3.99 -8.98 -7.44 -3.76 14.33

II Capital Account

i Capital Income 43.46 60.09 79.05 101.51 83.88 ii Capital Expenditure 81.13 97.19 107.64 123.64 105.82

Surplus/deficit -37.67 -37.1 -28.59 -22.13 -21.94

The capital account Income has swollen from Rs.43.46 crores to Rs. 83.88 crores at an

average growth rate of 20% during the review period whereas the capital expenditure has

grown from Rs. 81.13 crores to Rs. 105.82 crores at an average growth rate of 8% over

this period. The Capital Utilization Ratio has remained well above 1 during the review

period.

The Revenue income of ECMC has grown to a level of Rs 65.44 crores (unaudited

figures) from Rs 21.65 crores during the review period at an average rate of 28.5%

whereas the revenue expenditure has increased from Rs 30.12 crores in financial year

2007-08 to Rs. 51.11 crores (unaudited figures) in financial year 2011-12 at at an average

rate of 15%. The revenue account shows a surplus in year 2011-12 which may be

attributed to the increase in revenue base after the extension of ECMC limits.

Stakeholder’s Consultation & Visioning Exercise

The Stakeholders meeting was attended by more than 30 stakeholders of the city which

included representatives from various departments of the civic body, traders, and

representatives of industry and community welfare organizations.

Strategic visioning exercise was also conducted by asking the participants to (1) identify

the vision and plans for their city; (2) challenges that hinder the implementation of the

vision and plans; and (3) possible solutions to these challenges. The following responses

emerged during the visioning exercise:

Accessibility to infrastructure services – the basic issue (Regulated water

supply, underground sewerage/drainage system, affordable housing etc.)

Improved Road networks with adequate parking

Major challenge is to plan the extended areas

Involvement of Private sector for infrastructure services

Finalize Long Term Vision and Action Oriented Plans

SWOT Analysis: Current Status of the City

Strengths

Good Connectivity: Road and Rail

Highly urbanised

Rich Agricultural Resource base

Excellent industrial base: textile & leather

Trade centre

Weakness

Congestion in inner areas

Inefficient Traffic Management

Inadequate service levels - water supply

Absence of underground sewerage system

Polluting industries in the extended areas

(textiles and tanneries)


CDP for Expanded Erode City Municipal Corporation viii

Frequent power cuts causing disruption to

municipal services & industries

Opportunities

Potential for trade/ Agro processing/

Logistics (Due to connectivity)

Improving Municipal finance

Introducing balance of projects for

Infrastructure/Environment / Non- polluting

industries

Threats

Presence and Enlargement of slums

Lack of quality work force

Lack of sufficient employment

opportunity

Various growth drivers that would impact the Future growth of ECMC are as follows:-

- Coimbatore – Erode- Salem Industrial Corridor

- Coimbatore – Erode- Salem Expressway

- Perundurai SIPCOT Industrial Park

Vision

To develop Erode as the Regional Hub catering to the requirements of textile, agro-

processing, trade and commerce, wholesale etc.

Capital Investment Plan (CIP) & Priority Projects

The total estimated Capital Investment requirement for the medium term for providing

efficient infrastructure and services for the population of Expanded ECMC by 2024-25 is

Rs. 2123.52 Crores. The table below presents the summary of Sector-Wise Investment

requirement for the Core Service Sectors.

The identified projects have been prioritized based on the importance of their immediate

requirement and the prevailing condition of the area under study. Each sector has been

ranked in the table below in order of their priority.

Sectors Rank Investments (Rs.Crores)

Water Supply 1 401.2

Urban Environment 2 39.0

Roads & Transportation 3 875.5

Sewerage & Sanitation 4 312.8

Storm Water Drains 5 240.3

Street Lights 6 39.9

Urban Governance, Capacity Building & Policy Studies 7 8.0

Social Infrastructure 8 11.8


CDP for Expanded Erode City Municipal Corporation ix

Basic Infrastructure Facilities for Notified Slums 9 30.0

Heritage & Tourism 10 8.5

Commercial & Industrial Infrastructure 11 97.7

Solid Waste Management 12 58.8

Financial Operating Plan (FOP)

The Financial and Operating Plan (FOP) models future investment needs; income and

expenditure projections to evaluate and assess long-term financial sustainability,

potential areas for improvement in revenues and investment capacity of the ULB with

focus on assessing investment capacity of the ULB for the short / medium term.

The FOP is generated for the sustainable investment while also incorporating availability

and adequacy of internal revenues to cater to the additional Repair and Maintenance

works that would arise out of the proposed Capital Investment.

The funding for the entire identified investment of Rs. 2123.52 Crores as worked out in

the FOP model would be by way of:

For projects under JnNURM ((WS,UGSS (Phase-II) & Sanitation, SWD, SWM,

heritage & Urban Governance):

JnNURM Grants Rs. 715 Crores (80%)

State Government Rs. 089 Crores (10%)

ECMC/ULB Contribution Rs. 089 Crores (10%)

For UGSS project (Phase-I):

TNUDF Loans Rs. 46.0 Crores (34.0%)

Grants Rs. 50.0 Crores (36.42%)*

ECMC/ULB Contribution Rs. 40.0 Crores (29.58%)

*Grants includes KfW Grant of 30%, Additional Grant of 4.7% and LPA grant of 1.72%

Funding structure (Roads, Street light, Basic Infra for slums, Urban Environment,

Social Infrastructure)-TNUDF Funding:


Grants Rs. 299.0 Crores (30.0%)


Funding structure for commercial and industrial infrastructure;

Loans Rs. 88.0 Crores (90.0%)



Since the FOP provides a sustainability level of only 55%, the funding at sustainable

level for the entire identified investment comes to around Rs. 1167.9 Crores.


CDP for Expanded Erode City Municipal Corporation x

ABBREVATIONS:

BOT Build, Operate and Transfer

BPL Below Poverty Line

BSUP Basic Services for Urban Poor

CAGR Compounded Annual Growth Rate

CDP City Development Plan

CETP Common Effluent Treatment Plant

CPHEEO Central Public Health & Environmental Engineering Organization

DPR Detailed Project Report

ECMC Erode City Municipal Corporation

FOP Financial and Operating Plan

FY Financial Year

GoI Government of India

GoTN Government of Tamil Nadu

Ha Hectares

JNNURM Jawaharlal Nehru National Urban Renewal Mission

Kg Kilogram

km Kilometer

Lpcd Liters Per Capita Per Day

MoUD Ministry of Urban Development

MLD Million Liters per Day

MSW Municipal Solid Waste

NH National Highway

NRAP National River Action Plan

O&M Operation and Maintenance

PPP Public Private Partnerships

SH State Highway

SFC State Finance Commission

sq.km Square Kilometers

STP Sewage Treatment Plant

SWM Solid Waste Management

TNUIFSL Tamil Nadu Urban Infrastructure Financial Services Limited

TNUDP Tamil Nadu Urban Development Project

TUFIDCO Tamil Nadu Urban Finance and Infrastructure Dev. Corporation

TWAD Tamil Nadu Water Supply and Drainage Board

UGD Under Ground Drainage

ULB Urban Local Body

1

1 INTRODUCTION

1.1 Background

The Commissioner, Erode City Municipal Corporation (ECMC), Tamil Nadu has initiated

the process for preparation of City Development Plan (CDP) for Expanded Erode City

Municipal Corporation1 so as to institute the advantages of the JnNURM Program, a

framework which can comprehensively address issues of spatial planning and growth,

budgeting, infrastructure inadequacy and service delivery, slums and poverty,

environment, and other important aspects pertaining to policy, technical, managerial,

financial, social areas etc.

The Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL) on behalf of

the ECMC has engaged M/s Urban Management Consultants, Ahmedabad for preparation

of the City Development Plan for the Expanded Erode City Municipal

Corporation.required

This approach calls for building broad coalitions of local stakeholders and development

partners to work together to develop a strategy for the city that reflects a broadly shared

understanding of the city's socio-economic structure, constraints, and prospects (the

analytical assessment) and a shared “vision” of goals, priorities, and requirements (the

strategic plan of action). The city development strategy is both a process and a product

which together identify ways of creating the conditions for sustainability of the city along

four dimensions: livability, competitiveness, good management and governance, and

bankability.

The process of City Development Strategies (CDS) has to be defined by the city itself.

Accordingly, the Consultant has worked out the following three broad phases to define the

CDS:

Framing the process phase - a quick assessment of the readiness of the city

and the chief concerns of its residents and local business and community

leaders.

Analytical phase - the initial findings form the basis of a second, more in-

depth phase of analyzing the structure and trends in the local economy, its

national and regional context and the various obstacles - institutional,

financial, environmental and social- which may impede development, and

defining strategic options for the future.

Building consensus phase - setting priorities, building consensus making

decisions and identifying sources of assistance. This includes determining

how local partners can help the city achieve its goals.

1 The Expanded Erode City Municipal Corporation (referred to as Erode City Municipal Corporation

“ECMC” comprises of Erode, four IIIrd

grade Municipalities, two town Panchayats and five Panchayats.


CDP for Expanded Erode City Municipal Corporation 2

1.2 Progress so far

After completion of the draft final Stage, the Consultant has conducted a Technical

meeting (Annexure 8), Standing committee meeting (Annexure 9) and Stakeholders’

Meeting (Annexure 10) at Corporation office building, Erode. The main objectives behind

the Stakeholders meeting was to:

Discussed about the

proposed projects.

Clearly explained the

City Investment Plan

(CIP) and Financial

and Operating Plan

(FOP) of Erode City

Municipal

Corporation.

Assess Stakeholders

demand if any

The present report is for the final Stage and essentially includes the following:

Review of town’s economic development

Physical planning and growth management issues

Physical infrastructure status

Social infrastructure status

Analysis of Performance indicators for development

Municipal fiscal status

Identification of Institutional and Organisational issues

Capital Investment Plan and

Financial and Operating Plan



2 CITY PROFILE

2.1 City Overview

Erode city is the district head quarters of Erode District, located in western part of

Tamilnadu State. City of Erode is situated along the River Cauvery, at around 400 km

and 80 km distance from Chennai and Coimbatore respectively. Erode is well known for

handloom, power-loom textile products and readymade garments and hence it is called

Loom City of India or Tex-valley of India. It is also known as Turmeric city, as it is the

largest producer of turmeric in the state. This town was constituted as a Municipality in

the year 1871 and was elevated to Special Grade during the year 1980 and upgraded as

Corporation in 2001. As per Census 2011, ECMC (Erode City Municipal Corporation)

accounts for population of around 4.98 lacs.

2.2 Erode District

2.2.1 General

Erode district is located in the western part of Tamil Nadu and shares a border with

Karnataka on its north. On its east is Namakkal District, on its south Dindigul and on its

west is the Coimbatore and Nilgiri District. Cauvery River runs along the eastern side of

the district. Erode District was formed in 1996 before which it was known as Periyar

district. Earlier to that till September 1979, Erode was part of Coimbatore District.

The district has a long undulating plain sloping towards River Cauvery in its south east. 3

tributaries of river Cauvery (Bhavani/ Noyyal/Amravathy) drain the stretch of mountains

in the north. Other rivers are Palar in the North and Vatamalaikaraiodaiin the south, the

former becoming the boundary between Erode District and Karnataka. The eastern part of



the district is partly bounded by river Cauvery, entering from district Salem and flowing

towards south.

2.2.2 Administrative Set-up

Erode District is one of the industrialized

districts of the state of Tamil Nadu. The

headquarters of the district is Erode and

it is divided into two revenue divisions

namely Erode and Gobichettipalayam

and has five Talukas viz. viz.,

Sathyamangalam, Bhavani,

Gobichettipalayam, Perundurai and

Erode.

There are 8 Municipalities in the district viz., Sathyamangalam, Bhavani,

Gobichettipalayam, and Punjai Puliampatti. The other four Municipalities in the district

viz. Periasemur, Kasipalayam, Surampatti and Veerappanchatram have been merged

recently with Erode Corporation.

2.2.3 Urbanization: State vis-à-vis Erode District

Tamil Nadu is the 11th

largest and the seventh most populous state in India, and second

most economically important state in Southern India. Urban population of Tamil Nadu is

48.45% of the total state population. This is much higher than the national average of

31.1% as per Census of India 2011.

As per Census of India 2011, Erode District had a population of 22,59,608 persons, of

which male and female were 11,34,191 and 11,25,417 respectively. It is 51.22% urbanized

as per Census 2011. The district has a literacy rate of 72.96% and is on the rise. Erode is

the largest city in the district followed by Gobichettipalayam which is another major

center.

Tamilnadu State Erode District

Total Area (sq.km) 130,058 5,722.24

Total Population 72,138,958 2,259,608

Urban 34,951,325 1,157,371

Rural 37,187,633 1,102,237

Urbanisation 48.45% 51.22%

Population Density (P/sq.km.) 555 395

Decadal Growth Rate (Urban) 31.80% 17.91%

Sex Ratio 995 992

Literacy Rate 90.30% 73%

Source: Census of India, 2011

The 32 districts of the state have been categorized by level of urbanization viz. highly

urbanized (>50%); moderately urbanized (25-50%); low level of urbanization (15-25%);

predominantly rural (<15%) based on Census of India 2011 figures as in Table 2.1 below.



Table 2.1: Districts in Tamil Nadu ranked by their urbanization level

Source: Census of India, 2011

By 2031, the projected population for the State is estimated at 97 million with an expected

urbanization level of 58.7%. It is understood that the impacts of development will reflect

in the urbanization level. The district under reference, Erode, falls under the category of

highly urban with an urbanization level of 51.22%. It ranks at no. 10 in urban population,

and at no. 15 in total population.

2.2.4 Economy

The economy of Erode District is dependent on trade, industry and agriculture. Agriculture

production has been possible due to methods and practices available to farmers from the

two Agriculture Research Institutes in nearby Coimbatore. Production has also been

helped by good irrigation facilities/good soil/improved strains of seeds/better methods of

cultivation. Crops raised in the district are predominantly: Paddy and Cholam. Cultivation



of Turmeric is very large, along with variety of spices. Non Food crops such as Oil seeds/

Groundnuts/ Gingerly are dominant crops in the district. Groundnuts, Sugarcane, Tobacco

and Cotton have a prominent position in the agriculture sector. Fisheries and Animal

husbandry are being given special emphasis so that the district can have an enviable

position especially in the field of milk production.

More than 40% population depends on non agricultural sector. Industries such as

Handloom weaving, Carpet manufacturing, Oil Presses, Brass Vessel manufacturing,

Production of Carts happen to be some of the traditional manufacturing industries in

Erode district. Cotton ginning, dying works, fabric printing units have significant

presence in the district. Several leather tanneries in Erode are engaged in exports. Major

export articles are Handloom products/ Raw cotton/ Rice/ Dairy products.

2.3 Delineation of ECMC

Rapid increase in the economic and industrial activities, population growth, rise in per

capita incomes and other such urban factors have resulted in the formation of the Urban

Agglomeration areas of Erode City, thereby compelling the expansion of Erode

Corporation to include nearby Municipalities/Town Panchayats/Village Panchayats into its

jurisdiction. Thus, within the expanded area it shall be possible to deliver services into the

suburban areas and thereby ensure uniform development of the periphery of a rapidly

urbanizing Erode City.

Erode is the head quarters of Erode District. This town was constituted as a Municipality

in the year 1871 and was elevated to Special Grade during the year 1980 and upgraded as

Corporation by merging Four (4) grade III municipalities Two (2) Town Panchayat and

Five (5) village panchayats vide G.O. Ms. No.51, MA&WS Department, dated

17.03.2001.

The total area of the Corporation is 109.52 sq.km. It has been divided into four zones,

which consist of 60 wards.



Table 2.2 Administrative Divisions

Administrative Divisions Nos. Names

Revenue Division 4 Erode, Surampatti, Peelamedu, Sarkar

Chinna Agraharam

Third Grade Municipalities 4 Kasipalayam,Surampatti,Veerappan

Chathiram, Periya Semur

Town Panchayats 2 B.P.Agraharam and Suriyampalayam

Village Panchayats 5 Thindal, Gangapuram, Ellapalayam,

Villarasampatti, Muthampalayam

Source: Erode City Municipal Corporation

Figure 2.2: Map of Erode City Municipal Corporation



2.4 Location and Linkages

Erode city is situated at the centre of the South Indian Peninsula, about 400 kilometres

southwest from the state capital Chennai and on the banks of the rivers Cauvery and

Bhavani, between 11° 19.5" and 11° 81.05" North latitude and 77° 42.5" and 77° 44.5"

East longitude. The city is located at a distance of around 90 km east from Coimbatore and

around 90 km west from Salem.

Road Connectivity: Transportation system of the district as well as the city is well

developed. Erode being one of the prominent trading centers, is well connected with all

modern means of transportation. The north south corridor (NH 47: Salem - Coimbatore -

Cochin - Kanyakumari) passes close to Bhavani and Perundurai. NH-209 connecting

Bangalore to Coimbatore passes through Sathyamangalam. There are several State

highways that connect Erode City to urban centers within the district as well as outside

(SHs-15/20/37, 79, 81, 82, 84/84A/96). This shows good connectivity by road within the

district.

Rail Connectivity: The city lies in the broad gauge route connecting Chennai and

Coimbatore. It forms the nodal center, as it is the meeting point of the converging lines of

communication from major settlements of adjoining districts of Salem, Coimbatore,

Thiruchirapalli and Nammakal. Erode Railway Station is one of the main railway stations

and is located at 3 km from Erode Central Bus Terminus. Erode Junction has the

distinction of being the Third cleanest railway junction in India, after Bhopal Habibganj

Railway Station (Bhopal) and Secunderabad Railway Station. Erode Junction is the

junction point between the trains passing towards West/East of Tamil Nadu and Kerala,

Karnataka and is one of the busiest railway junctions where many trains passing through.

The station is well connected by buses round the clock.

Air Connectivity: The nearest airport to the city is Coimbatore International Airport,

which is located at a distance of 80 km from the city. There is a Local Airport at Salem at a

distance of 65 km from Erode, which presently lay in disuse due to low market demand

leading to non-viability of operation.

2.5 Climate and Rainfall

The climate of the city is mostly hot and dry. During February and March, the climate is

usually oppressive especially along the river Cauvery. In April the weather gets hotter and

humidity is at its maximum. During June, July and August cool breeze flows through

Palghat gap, but by the time it reaches Erode, it becomes hot and dusty. The average rain

fall is about 700 mm. The average maximum and minimum temperature are 96’F and 80’F

respectively. The temperature gradually increases from 85 F in January to 96 F in May and

reduces gradually to 80 F in December.



Figure 2.3 Climate Data for Erode


2.6 Demography

The development of a particular city, town or a region depends upon natural, physical and

socio-economic factors. Among these factors the population assumes significance in

determining the future pattern of progress and development. As per Census of India 2011,

ECMC had a population of 4.98 lakhs. The growth rates have fluctuated during the

previous decades from 1911 to 2011.

The city is spread over an area of 109.52 sq.km, where the Corporation provides all its

services. As mentioned earlier, the jurisdiction of ECMC has been expanded from 8.44

sq.km to 109.51 sq.km. by merging 4 surrounding municipalities, 2 town panchayats and 5

village panchayats in 2001. Due to the spatial expansion of city limits, the total population

of ECMC increased manifold, while the gross density decreased. The population, density

and growth rate for all the constituents of ECMC is presented in the table below.

Table 2.3 Erode City Municipal Corporation Sr.

No.

Components of ECMC Area (in

sq.km.)

Population Decadal

Growth

Rate (%)

Density (ppha)

2001 2011 2001 2011

1 Erode 8.44 150,541 156,953 4.26 178 186

2 Periyasemur 9.13 32,024 55,281 72.62 35 61

3 Kasipalayam 25.64 52,500 73,375 39.76 20 29

4 Veerappan Chathram 7.36 72,703 84,437 16.14 99 115

5 Surampatti 3.17 31,948 41,897 31.14 101 132

6 Suriyampalayam 17.71 21,893 28,554 30.43 12 16

7 B.P. Agraharam 10.81 21,458 24,615 14.71 20 23

8 Thindal 5.89 10,084 15,433 53.04 17 26

9 Villarasampatty 7.86 4,560 7,439 63.14 6 9

10 Gangapuram 7.17 4,337 5,840 34.66 6 8

11 Ellapalayam 3.20 1,921 2,503 30.30 6 8

12 Muthampalayam 3.14 1,477 1,794 21.46 5 6

Total ECMC 109.52 405,446 498,121 22.86 37 45


0

5

10

15

20

25

30

35

40

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Temperature - Monthwise

Average high C Average low C



Population Size: As per Census 2011, the erstwhile Erode Corporation area accommodate

population of around 1.57 lacs, while the four Grade-III municipalities merged with

ECMC altogether comprise a population of around 2.55 lacs. Veerappan Chathram having

84,437 population is highest amongst these four Grade-III municipalities. The 2 town

panchayats and 5 village panchayats comprise around 0.86 lacs population out of the total

4.98 lacs population of ECMC. Amongst the five village panchayats, Thindal is having

highest population, i.e. 15,433.

Growth Rate: While the population within total ECMC has grown at a rate of 22.86%

during 2001-11, the population growth rate of erstwhile Erode during the same period is

4.26%. The much wide difference in the growth rate of erstwhile Erode and ECMC

presents the stagnation and saturation of population in the erstwhile Erode, and hence,

the increasing population is settling down in the adjoining and nearby developing areas

of ECMC. Parts of the ECMC that witnessed significantly high population growth are

Periyasemur (73%), Kasipalayam (40%), Villarasampatty (63%), and Thindal (53%).

Density: The population density of erstwhile Erode has reached 186 ppha in 2011, which

is much higher than the density of other parts of ECMC. The Grade-III municipalities of

Surampatti and Virappan Chathram observe density of around 132 and 115 ppha

respectively. Thindal is having population density of around 26 ppha which is remarkably

high than the other four village panchayats having density of 6 to 9 ppha. The gross

density of total ECMC has increased from 37 ppha in 2001 to 45 ppha in 2011.

Households: The total number of households has increased from 37,505 in 2001 to

124,530 in 2011 due to expansion of City Corporation boundaries. The average household

size of the town is 4 persons.

Sex Ratio and Literacy Rate: As per the Census 2011, the sex ratio in the city is 953

females per thousand males. The sex ratio of the city has fluctuated during the last three

decades. The literacy rate was 88.39% in 2001, which was higher than state’s average of

86.81%, indicating an increasing awareness for literacy among the people. Male literacy

rate was 93.18%, and female literacy was 83.65%.

2.7 City Economy

Erode has a diverse and balanced economy contributed by agriculture

(turmeric/banana/coconut/rice/oil/ sugarcane), industry (textile, tanneries, paper, coconut

oil), and commerce. The city is a important trading centre for the surrounding region. The

city has national presence in terms of production and trading of textile products and the

production of turmeric, due to which Erode is also known as Manjal Maanagaram

(Turmeric city) and Javuli Nagaram (Textile city). The sectors having much significance in

economic development of Erode are presented below.

Textile: Erode is well known for handloom, powerloom textile products and readymade

garments and hence it is called Loom City of India or Texvalley of India. Products such as

cotton sarees, bed spreads, carpets, lungies, printed fabrics, towels, dhotis are marketed

here in bulk. A number of spinning mills are situated in and around town of Erode.



Industries: Agro-based industries contribute significantly in the industrial development at

Erode. Sugarcane processing industries extract juice from the cane to make sugar and the

remains are used for paper manufacturing, and hence paper industry also thrives around

the city. It is also one of the largest coconut oil producers in south India. Moreover, there

are a lot of dall mills, cotton textiles, vanaspathy manufacturing, wax and screen printing

power loom, sizing, warping and printing press located in the city. In addition, the city has

a number of tanneries. Erode stands second in leather processing in the state, next only to

Ambur.

Agriculture & Turmeric: The region surrounding Erode city has advanced in the field of

agriculture. The agricultural activity in the district is well supported by the rivers Cauvery

and Bhavani. Amaravathi, Uppar and Parambikulam Aliyar river are the other water

sources for irrigation in this district. This district is having one Regional Agricultural

Research Station of Tamilnadu Agricultural University at Bhavanisagar.

Erode is also known as “The Turmeric City” or “Yellow City”. Erode is the largest

producer of turmeric in the state and has one of the largest markets for coconut. It is

famous also for rice cultivation and oil mills, as well as for dairy products. It is also one of

the largest coconut oil producers in south India. Sugarcane and floriculture are an

important source of income to the people.

Work Force: The major workforce of the city constitutes 35.20% as per Master Plan of

Erode city. The largest number being engaged in the tertiary sector (69%), followed by

secondary sector (27%), with the remaining engaged in primary sector (4%).

2.8 Land Use Planning

The physical aspects of land relate to the availability of land, land usage pattern, extent of

open spaces, etc. Land management is an important aspect of city development, and has

the potential to be the biggest facilitator or the most critical constraint for development.

Land development principles of the city should be closely aligned with the economic and

infrastructure base of the city.

The total area within the Corporation’s limit is 109.52 sq.km. Prior to inclusion of

extended areas, the Corporation area was only 8.44 sq.km.

The Government of Tamil Nadu has appointed Erode Local Planning Authority to prepare

the Master Plan for Erode Corporation during 1998. The extent of the Erode Local

Planning Area is 80.07 sq.km, for which a Master Plan has been prepared. There is no

Master Plan has been prepared yet for the remaining areas of around 19.45 sq.km. The

following Table gives the land use breakup of Old Erode Municipal area and Erode Local

Planning Area.



Table 2.4: Land Use Break-up of Erode

S.No. Land Use Old Erode Municipal

Area

Erode LPA including

Town Area

Area

(Ha.)

% to Total

Area

Area (Ha.) % to Total

Area

1 Residential 483 57% 1,499 19%

2 Commercial 133 16% 166 2%

3 Industrial 60 7% 292 4%

4 Educational 13 2% 58 1%

5 Public and Semi-public 44 5% 106 1%

6 Agriculture 95 11% 5,347 67%

7 Water bodies 16 2% 539 7%

8 Total 844 100% 8,007 100%

Out of the total extent of 8.44 sq.km of erstwhile Erode Municipal Area, 86.85% of the

land has been developed and only 11.15% remains undeveloped, while remaining 2% of

area is under water bodies and hence non-developable.

The city has developed to a great extent beyond the erstwhile Erode Municipal Area, along

Coimbatore road, Cauvery road, Sathyamanagalam road, and Bhavani road. Within Erode

Local Planning Area (80.07 sq.km.), developed lands constitute around 26.5% of the total

area. Around 7% of the said area is covered by water bodies, while around 67% of Erode

Local Planning Area is undeveloped.

2.9 Physical constraints and Urban Sprawl

Erode was recognized as the district head quarters from 1979. The town from the period of

evolution has been a commercial town and center of turmeric and textile industries. The

development of Erode has been taking place at a much faster pace due to the increasing

industrial activities. Erode, being an urbanized industrial center and the nodal point has

been attracting people for job opportunities from the neighboring villages and towns. The

increase in the industries is evident from the increasing share of workers in the tertiary

sector over the recent years.

Erode is bounded on the north and east by Kalingarayan Canal (Cauvery River) and the

railway line on the south. As these do not support the growth on the southern and eastern

side of the city, the spatial growth of city is likely to take place towards the northern or

western direction along the highways leading to Coimbatore and Sathyamangalam. The

city is growing in the south west and west directions along the major radial roads. The

growth direction in the past was observed towards the west along the NH 47. With the

establishment of technical and educational institutions in Perundurai Road, the areas along

Thindal are developing. Thus major growth is expected along the Perundurai Road in the

future.

The growth is further reinforced by the fact that there is no vacant land available for future

development in the old Erode city. This is one of the reasons behind extending the

geographical boundary of the Corporation.



Figure 2.4: Extent of Development



3 CITY ASSESSMENT: ANALYSIS OF THE EXISTING SITUATION

3.1 Background

Municipal services have a direct and immediate effect on the quality of life of the people

in the city. Poor municipal services can also limit city’s attractiveness for business and

thus limit job opportunities for its residents. Therefore, the biggest challenge for the

Corporation is to provide its citizens with reliable services that are financially and

environmentally sustainable. To formulate the City Development Plan, an assessment of

ECMC has been carried out with respect to basic infrastructure (both physical and social),

physical and environmental aspects like land usage and pollution levels and finally the

financial status of the Corporation. The objective is to make a realistic assessment of

where the city is, the direction in which it has been moving, and its strengths and

weaknesses.

To assess the indicators of performance in each sector of infrastructure, the existing levels

of key Municipal services is benchmarked against their norms and standards to arrive at

performance assessment index. The norms and standards are based on SFC

recommendation, Planning Commission recommendation, UDPFI guidelines, CPHEEO

manual, best practices etc. The benchmarking further helps in the assessment of

infrastructure gaps, future projections, service delivery, and investment required to fill the

gaps etc.

3.2 Population Projection

The future requirements (i.e. for short, medium and long term) in terms of level of services

and infrastructure across all sectors is made by adopting the population projections done

for ‘Dedicated Water Supply Scheme’ for ECMC. The population projections as per DPR

prepared for the Dedicated Water Supply Scheme is represented in the table below;

Year 2011 2015 2030 2045

Population 498121 5,35,000 7,00,000 9,05,000

CAGR 1.8% 1.8% 1.8%

Adopting the same CAGR of 1.8%, the population has been projected for the horizon

year of short, medium and long terms i.e. 2017, 2024 and 2042 respectively as shown in

the table below;

Plan Base Year Short medium long

Year 2012 2017 2024 2042

Projected Population 507100 554000 628300 866400

CAGR 1.8% 1.8% 1.8%

Projected Population

of Erstwhile Erode +

4 Municipalities

416218 438267 471111 592246

Other area 90882 115733 157189 274154



3.3 Water Supply System

This section reviews and analyzes the current water supply system of Erode Municipal

Corporation and derives the future requirements for upgrading the water supply services to

achieve the desired levels both in quantity and quality of supply. The information on the

current system is collected from the Municipal Corporation and through field inventories

and reconnaissance surveys. Component wise information comprising water supply source,

head works, treatment system, storage and distribution is collected to understand the

existing system and the deficiencies. Based on the analysis of these secondary data, the

gaps and deficiencies in the present system have been identified.

3.3.1 Source

Erode City is provided with protected water supply since 1918. An improvement of the

Scheme was implemented in 1987. The river Cauvery is the main water source for these

schemes. The raw water is drawn from the Cauvery River at a distance of 2 km from

northern limit of the city. The water is drawn through an intake well constructed in the

midstream of the riverbed and conveyed to suction wells on the riverbank through siphon

pipelines of 350 mm and 200 mm dia. From the suction well, the raw water is pumped to

the treatment plants.

Each of the local body (except Muthamapalayam) merged to form Erode Corporation has

independent water supply distribution drawing water from the common water supply

system / independent system. Muthumapalayam has local bore wells as source.

3.3.2 Treatment and Distribution

The existing system has Water Treatment Plants (WTPs) at Vairampalayam, Verrappan

chatram, Vendipalayam, Mutham Palayam, BP Agraharam & Kothkaranpudur. The

designed capacities of the WTPs are given in the table below:

Table: Erode Municipal Corporation - Existing Water Treatment Plants

S.No. Name of the merged

Local Body

WTP location Capacity

(MLD)

1 Erode Municipality Vairampalayam 30.00

2 Veerappan chatram Veerappan hatram 10.62

3 Periyasemur BP Agraharam 5.88

4 Surampetti CWSS at Surampetti & Kasipalayam 8.82

5 Kasipalayam Vendipalayam WTP,

Mutham Palayam Housing Board WTP

CWSS of Surampetti & Kasipalayam

7.40

1.1.1

1.1.2

6 B.P.Agraharam BP Agraharam 3.79

7 Suriam Palayam CWSS at Suriampalayam &

Kothkaranpudur

3.50

8 Gangapuram 1.1.3

9 Ellappalayam Kothkaranpudur

10 Muthampalayam Local bore well 1.1.4

11 Thindal Kothkaranpudur 1.60

12 Villarasam patti Kothkaranpudur




The treated water from the WTPs is supplied to the overhead tanks located at different

places viz., Chithamparanar Park, Karunkalpalayam, Katharpatcha road, Seenimalai road,

Gandhiji road, Ganthi Nagar etc. At present, there are total 47 overhead tanks of varying

capacity. The total length of pumping main is 108.25 km and the length of distribution

network within the Corporation limit is 471.98 km. The CWSS of BP Agraharam was

commissioned in 1995 and shared between the then three municipalities - Surampatti,

Kasipalayam and B.P.Agraharam. Later in 1999 Periyasemur Water Supply Scheme was

commissioned using the same source. The other schemes are Golden Jubilee Water Supply

Scheme with head works at Vendipalayam (2007) & Muthampalayam Housing Board

WATER SUPPLY SCHEME (2007) and Kothukulam Pudur Water Supply Scheme.

3.3.3 Per Capita Supply and Connections

ECMC now supplies only 54.09 MLD of water to the city area as presented in table below

but the per capita supply varies from 135 lpcd to 64 lpcd. Most of the areas do not have

daily water supply.

Table: Erode City Municipal Corporation - Water Supply Distribution

S.

No.

Name of the

merged Local

Body

Water

supply

MLD

Per

capita

Supply

LPCD

Bore

wells/hand

pumps

Mini

power

pumps

Distribution

interval

1 Erode

Municipality

22.00 135 418 242 Alternate day

2 Veerappan

Chatram

9.00 105 95 136 Alternate day

3 Kasipalayam 7.60 102 140 112 Every 3rd

day

4 Periyasemur 4.70 87 79 66 Every 4th

day

5 Surampetti 3.10 75 45 42 Alternate day

6 B.P.Agraharam 2.70 70 64 14 Daily

7 Suram Palayam 2.10 70 16 17 Daily

8 Gangapuram 0.70 92 19 26 Daily

9 Muthampalayam 0.17 64 13 13 Daily

10 Thindal 1.01 87 11 39 Daily

11 Ellappalayam 0.36 78 10 12 Daily

12 Villarasam patti 0,65 96 16 14 Daily

Total 54.09 923 759


Ground water, in general, is moderate when compared to other areas in the State. The

depth of groundwater table in Erode city varies from 1 to 15 m below the ground level. As

presented in the table above, there are about 759 power pumps and 923 bore wells/hand

pumps in the city tapping about 5.80 MLD in addition to the water supply from Cauvery.

The total number of service connections is 65,530, out of which 62,778 connections

(124,530 households as per Census 2011) are domestic and 2752 connections are non-

domestic. With an average household size of four, this implies approximately one water

connection for every two households. There are 2,900 Public Stand Posts (PSPs).



The main source of water supply in slums is met through hand pumps and public stand

posts. Only 20% of people in the slums have house service connections. The local

authorities have provided Water Tank Taps / Hand Pumps / PSPs covering all the slums.

3.3.4 Institutional Arrangement

The Tamil Nadu Water Supply and Drainage Board (TWAD), an apex body of the State, is

responsible for creation of water and sewerage infrastructure in the state. However, in the

case of Erode, the system is being maintained by the Corporation. But there are two

Combined Water supply Schemes maintained by TWAD. One is the Suriyampalayam

Head works which serves Suriyampalayam, Periyasemur and part of Gangapuram. The

other head work at Kothukaranpudur supplies water to rest of Gangapuram, Ellapalayam,

Thindal and Villarasampatty. Since these local bodies are now added to the Corporation,

the Corporation will have to be responsible for supplying water to these areas.

Engineering department of the Corporation is responsible for providing and maintaining

water supply services in Erode.

3.3.5 Tariff Structure

At present water charges are levied on metered consumptions. Currently the water charge

tariff in ECMC area varies from Rs.30 to 62 per month for domestic connection. The

highest tariff for domestic connection is observed in B.P. Agraharam (Rs.62/month)

followed by Kasipalayam, Veerappanchatram, Periya Semur and Suriampalayam

(Rs.55/month). The lowest tariff is observed in Villarasampatti, Gangapuram and

Muthampalayam (Rs.30/month). In Erode the tariff is Rs.40/month for 10,000 litres and

additional Rs.3/- for every extra 1,000 litres.

The tariff structure is given in table below:

Table: Existing Tariff Structure

S.

No.

Name of ULB Water Charge Tariff

Domestic Non-Domestic Deposit

(Rs.)

Charges

(Rs.)

Deposit

(Rs.)

Charges

(Rs.)

1 Erode 2,500 Rs.40/month

up to 10,000

litre &

Rs.3/- for

every

additional

1,000 litre

6,000 Rs.120/month

up to 10,000

litre &

Rs.12/- for

every

additional

1,000 litre

2 Kasipalayam 4,000 8,000 Commercial-

Rs.135/month

Industrial-

Rs.165/month

3 Veerappan

chatram

3,000 5,000 Commercial-

Rs.195/month

Industrial-



Rs.156/month

4 Surampatti 3,000 5,000 Rs.182/month

5 Periya Semur 2,000 5,000 Rs.165/month

6 Suriampalayam 3,000 5,000 Commercial-

Rs.205/month

Industrial-

Rs.305/month

7 B.P. Agraharam 3,000 Commercial-

7,000

Industrial-

5,000

Commercial-

Rs.302/month

Industrial-

Rs.302/month

8 Ellapalayam 1,000 2,000 -

9 Thindal 1,500 5,000 Rs.100/month

10 Villarasampatti 1,000 1,000 -

11 Gangapuram 1,500 - -

12 Muthampalayam 1,000 1,000 -

For non-domestic connections the water charge tariff varies from Rs.100 to 302 per

month. Of this the tariff for commercial connection varies from Rs.135 to 302 per month

whereas that of industrial connection varies from Rs.156 to 305 per month. The highest

tariff for non-domestic connection is observed in Suriampalayam (Rs.305/month)

followed by B.P. Agraharam (Rs.302/month) and Veerappanchatram (Rs.182/month) for

industrial connections. In Erode the tariff for non-domestic connections is Rs.120/month

for 10,000 litres and additional Rs.12/- for every extra 1,000 litres.



3.3.6 Service Level Indicators and Future Demand

The current supply covers about 55% of the households with supply on alternate day / once

in three days with durations of 2 to 4 hrs. The supply is not equitable and it varies from

135 to 64 lpcd. The demand-supply gap is likely to widen drastically in future due to

increasing population. Leakage / pilferage are other issues. But the contamination of the

source is the most critical issue. Tables below present the current service levels compared

to the benchmark prescribed by MoUD, GoI, and the estimated demand and gap.

Table: Service Level Indicators

Indicators Benchmark1

Existing

Coverage of water supply connections 100% 55%

Per capita supply of water 135 lpcd 108 lpcd

Extent of metering of water connections 100% 92%

(Nearly 5% non-

functional)

Distribution Loss 10% 8%

Continuity of water supply 24 hours Less than 2 hrs

Efficiency in collection of water supply-related

charges

90% 95.64%

1 Handbook of Service Level Benchmark, MoUD, GoI

Table: Assessment of Future Demand & Gap- Water Supply

S.

No.

Particulars Existing

Level

2017

(Short Term)

2024

(Mid Term)

2042

(Long Term)

Demand Gap Demand Gap Demand Gap

1 Water

Demand (in

MLD)

54 89 35 104 50 142 88

2 Treatment

Capacity (in

MLD)

72 89 17 104 32 142 70

3 Distribution

Network (in

Km)

472 796 324 796 324 796 324

4 Storage

Capacity (in

ML)

- 30 - 35 - 47 -

3.3.7 Issues

Source of Surface Water, Ground Water and Pollution: Cauvery is the major water supply

source, but the present locations from where water is drawn has become highly polluted

due to discharge of untreated sewage, effluent from tanneries, bleaching and dying

industries along the bank of the river of Cauvery and river Bhavani. The current location

of the head works has not only issues of pollution but also the availability.

With greater utilisation of water for industrial and domestic use and also due to the

increased use of agricultural chemicals, industrial pollution, indiscriminate discharge of



effluent, ground water quality is deteriorating rapidly in the area. Diminished water quality

also means that the quantum of fresh water available for particular uses is reduced, or that

the water can be used only after treatment.

Storage and Supply: As stated earlier, the supply varies from 135 to 64 lpcd and even less

in summer months when people has to depend on tanker supply. This issue will continue

even if new WTP with adequate quantity is commissioned unless rezoning is done with

proper storage distribution network to ensure equitable supply. The present coverage in

terms of house connection is 50% where as area wise it is around 75%. Both of these have

to be augmented to make it 100%.

Tariff Structure: The Corporation follows a flat tariff structure; hence the water charges

are not linked to consumption. The Corporation needs to make plans for improving cost

recovery levels. Accordingly, the Corporation is planning to introduce a volumetric

tariff. For this, the reliability of meters needs to be ensured by ECMC through a

systematic process. The citizens’ survey also suggests a positive attitude among citizens

towards metering. On being asked about their willingness to pay for better water supply

services, almost all the respondents expressed their willing to pay at least 10-20% more

than their current payouts; the higher socio-economic segments are willing to pay as high

as 25% more. ECMC feels that it should revise its tariffs accordingly.

The crucial issues emerging are:

The contamination of water at present source

The inadequacy in quantity to meet current and future demands

No daily supply

Supply not equitable

The uncovered areas in the extended areas

The age old distribution system in the erstwhile Erode Municipal area

resulting in leakage, contamination, pressure loss

Cost recovery

Accounting details are not available separately to assess the current situation

3.3.8 On-going / Proposed Project

A Detailed Project Report (dated Feb 2013) for the Dedicated Water Supply Scheme has

already been prepared by Tamil Nadu Water Investment Company (TWIC) for ECMC

area, the highlights of which has been listed below:

Table: Proposed Water supply Scheme Brief

Design Period 30 Years

Population Served 9.05 lakhs (2045)

Base water demand 135 lpcd

Industrial/ Bulk demand 10.0 MLD

Total Raw water to be pumped 155 MLD

Source of Water Urachikottai, Cauvery River

Project Cost Rs 392.5 crore

Implementation Period 3 years



Population Projection & Water Demand - The population is 498,121 as per 2011 census

and the projected population in 2030 & 2045 is 7 lakhs and 9 lakhs respectively, as per the

proposal for the Dedicated Water Supply Scheme for ECMC (Tamil Nadu Water

Investment Company Ltd – Feb 2013). In accordance with the estimated population, the

water demand has been derived based on the following:

Base Water Demand: 135 lpcd

Distribution losses: 10%

Clear water transmission losses: 1%

Water treatment losses: 3%

Raw Water transmission Losses: 1%

Accordingly, the projected water demand comes out as mentioned in the table below:

Table: Projected Water Demand

S. No. Description Units 2015 2030 2045

1 No. of People Persons 535,000 700,000 905,000

2 Domestic demand MLD 72.23 94.5 122.18

3 Floating population MLD 1.5 3 3

4 Total (2+3) MLD 73.73 97.5 125.18

5 Loss in distribution @10% MLD 7.37 9.75 12.52

6 Demand including losses MLD 81.1 107.25 137.7

7 Industrial /Bulk demand MLD 5 7.5 10

8 Total (6+7) MLD 86.1 114.75 147.7

9 Loss in transmission @1% MLD 0.86 1.15 1.48

10 Treated water required MLD 86.96 115.9 149.18

11 Loss in WTP @3% MLD 2.61 3.48 4.48

12 Raw water to WTP MLD 89.57 119.38 153.66

13 Loss in raw water main MLD 0.43 0.63 1.36

14 Raw water to be pumped MLD 90 120 155

Source: Dedicated Water Supply Scheme - Feb 2013

The base year is taken as 2015, intermediate as 2030 and ultimate year as 2045 with

treated water requirements in MLD as 86.96, 115.90 & 149.17 respectively.

Identification of Source - To meet the ultimate demand, the total quantity of raw water

required is 155 MLD which is 1.79 cusec of flow. Since dependence only on ground water

sources is not feasible due to declining yield and increasing issues of pollution, alternative

sources such as surface water of River Cauvery needs to be explored. According to Studies

carried out by Central Water Commission in 2006, 2007 and 2012 (Integrated Hydraulic

Data Book 2012), Urachikottai (upstream of Erode) has the flow characteristics as

mentioned in the table below:

Table: Annual Dependable Flow of Water by Site - Cauvery River Basin (Flow unit

MCM) Site Name Period 10% 20% 30% 40% 50% 60% 70% 80% 90%

Urachikottai 6/1979 to

5/2009

11,447 10,116 8,623 7,875 6,768 6,319 5,385 5,065 3,080

Source: Integrated Hydrological Data Book, 2012



Need and Justification for New WTP Project - With the inclusion of four

Municipalities, two Town Panchayats & five Village Panchayats, the population of

405,446 (2010) has gone to 498,121 in 2011. The Existing system which suffers from

contamination at source is unable to meet the current demand at 135 lpcd and has issues

discussed in the foregoing section. The off take points of pumping stations at river side, is

highly polluted due to presence of dyeing factories and tanneries in the up-stream side. So,

it is necessary to change the place of raw water off-take point. As projected for the

proposed Dedicated Water Supply Scheme by CMA (Tamil Nadu Water Investment

Company Ltd – Feb 2013), in order to meet the current and projected demands and to tap

contamination free raw water, a reliable source has to be identified both in terms of quality

& quantity. Rezoning is necessary to have an equitable distribution system. Hence, the

Project is required to ensure equitable water supply on daily basis from a source

dependable in quality & quantity to cover all areas including the existing unserved areas /

areas with low pressure.

3.4 Sewerage & Sanitation System

The drainage function of an urban local body is related to the disposal of wastewater and

storm water. This is carried out either through underground piped drains (sewers) or

surface drains. Ideally, storm water drainage should be separate from the wastewater

drainage system. But most of the cities in India do not have an adequate drainage system to

carry the wastewater. So, often the sewage flows through surface drains, which are

supposed to carry storm water. Introduction Sanitation is defined as “safe management of

human excreta, including its safe confinement, treatment, disposal, and associated

hygiene-related practices. It should also be recognized that environmental sanitation

requires integral solution covering drainage, sullage & solid waste management. In this

section management of human excreta & sullage of Erode Municipal Corporation is

considered.

3.4.1 Sewerage System

At present, there is no sewerage network/system functioning in the city. The people of

Erode depend on toilets with on-plot disposal system (septic tanks / pits / bore latrines).

Overall, only about 65% of total households have individual safe disposal facilities and the

remaining people depend either on community toilets / public toilets / unsafe toilets or go

for open defecation. Safe toilets are those connected to a septic tank / twin lined pits with

soak pit or to a sewerage system. Since the toilet coverage is not adequate, significantly

high share of population depend on community toilets and open defecation. On-plot

sanitation and septic tanks/pit latrines are not maintained properly with regular de-

sludging, thereby adding to public health risks and long-term environmental threats.




drainage system. But most of the cities in India do not have an adequate drainage system to

carry the wastewater and Erode is not an exemption. The open drainage system intended

for storm water is contaminated with effluent from septic tanks, sullage from houses and

hotels.



The discharge of effluent of septic tanks to the surface drains and open defecation are

contributing to the pollution of the receiving watercourses, ponds, tanks and ground

water, and causing environmental degradation.

It is important to note that under-ground sewerage system covering the area of erstwhile

Erode and 4 municipalities is presently being implemented. The project is to serve an

area of 54.63 sq.km., details of which are presented hereinafter.

3.4.2 Community / Public Toilets

In addition to individual toilets of about 65100, there are 171 community toilets and 6 pay-

&-use toilets for urban poor & public use. Though the pay-&-use toilets are being

maintained satisfactorily, the community toilets of the extended areas of the city are

maintained improperly and there are inadequate seats as required by standards.

As per the ECMC records, the total number of slums in Corporation area is 131 (86

notified and 45 un-notified slums) with 18,944 households with a population of 75,776

(which is 15% of the total population). Out of this about 20,000 people have access to

public/community toilets. The existing scenario is presented in table below.

Table: Existing Scenario of Sanitation in Erode Municipal Corporation

Sanitation Current situation

Coverage of toilets - Individual HHs 65,100 no’s - 65%

Coverage of toilets - Community toilets 171

Coverage of toilets - Functioning 57

Open defecation Large no. of people in slums & outer areas

Coverage of Sewage Network Nil (work under implementation)

Septage treatment facility Nil

Most of the community toilets are found in bad shape. As per estimate of Corporation 114

community toilets out of 171 require substantial repairs. In the extended area, the toilet

coverage is comparatively low and open defecation continues. As per the report on ‘Tamil

Nadu Urban Sanitation Policy’ by Municipal Administration and Water Supply (MAWS)

Department (February 2012), the availability of public conveniences in Erode is 1 seat / 120

people, which is very low compared to recommended norm of 1 seat / 60 people. The said

Sanitation Policy document ranks Erode as one of the cities requiring considerable

improvement.

3.4.3 Service Level Indicators and Future Demand

The service levels of Sewerage and Sanitation facilities of ECMC have been compared

with the prescribed benchmark for several indicators. The estimated future demand and

the gap considering the on-going underground sewerage scheme also have been worked

out. Refer following tables.



Table: Sewage Management (Sewerage and Sanitation) – Service Level

Proposed indicator Benchmark Current scenario

Coverage of Toilets 100% 65% individual

Coverage of Sewerage Network Services 100% Nil

Collection Efficiency of Sewerage 100% Not Applicable

Adequacy of Sewage Treatment Capacity 100% 50% (on-plot system)

Extent of Reuse and Recycling of Sewage 20% Nil

Efficiency in Redressal of Customer Complaints 80% Not Available

Extent of Cost Recovery in Sewage Management 100% Not Available

Efficiency in Collection of Sewage Charges 90% Not Applicable

Source: Handbook of Service Level Benchmarking - MoUD

Table: Assessment of Future Demand & Gap- Sewerage & Sanitation

S.

No

.

Particula

rs

Existing

Level

2017

(Short Term)

2024

(Mid Term)

2042

(Long Term)


1 Sewerage

Network

(in Km)

504 (under

implement

ation)

800 298 950 448 1050 548

2 Treatment

Capacity

(in MLD)

50.5 (under

implement

ation)

60 9.5 68 17.5 94 43.5

3.4.4 Issues

Crucial issues are open defecation and the absence of safe disposal of human excreta. The

deficiencies are the inadequate number of toilets and absence of UGD system to convey

and treat the excreta and waste water. The summary of issues and the impacts are:

Inadequate coverage of individual toilets: Overall, only about 65% of

Urban Agglomeration households have individual safe disposal facilities and

the remaining people depend either on community toilets or go for open

defecation.

Improper on plot disposal system: Pit latrines, absence of /clogged soakage

pits, irregular cleaning of septic tanks, etc. lead to ground water

contamination.

Discharge of untreated sewage to the water bodies via storm water drains

and to other low-lying areas and the resultant degradation of the environment

Discharge of sewage to surface water sources and low-lying areas poses a

significant threat to groundwater and surface water quality and is a public

health hazard;

Inadequate and Ill-maintained Public toilets: The improper usage, lack of

maintenance of toilets and septic tanks especially those in urban slums is a

matter of concern. The other reasons could be lack of awareness of users, no

sense of ownership.

There is a high dependency by slum population on public conveniences; the

seat per person is limited. The estimated current usage per seat is one / 120



people against the norm of one / sixty people. Many slum dwellers resort to

open defecation due to inadequate number or the habit they developed.

Lack of tenure, space & economic constraints of the poor communities /those

in informal settlements in obtaining access to safe sanitation

No system is available for safe collection, handling and transportation,

treatment of septage from on-site installation. The septic tanks are being

cleaned on an infrequent basis and the collected sewage is disposed in low-

lying areas / water bodies etc.

Public awareness regarding safe sanitation is low especially in the slum areas.

No common collection and treatment system – UGD system is the most

preferred option for treating human excreta and waste water in cities

especially those having high density of population.

Treatment through septic tank is a cost effective solution provided they are designed and

constructed properly, regularly de-sludged and the soak pits are maintained. De-sludging

of septic tanks are not carried out regularly due to non availability of sludge suction

machines and septage treatment facilities. Sludge is hazardous material and its safe

disposal is mandatory. Due to the above inadequacies in sanitation and waste water

management, introduction of underground sewerage system and treatment facility was.

The roadside drains will continue to carry storm water after implementation of UGD.

3.4.5 Ongoing Projects

The major ongoing interventions are:

The UGD system for erstwhile five Municipal area – Erode,

Veerappachatram, Kasipalayam, Surampatti and Periyasemur

Construction of community toilets for poor and unserved people

A. Underground Sewerage System ECMC is currently implementing the Under Ground Sewerage System (UGSS) at a cost of

Rs.209.22 crores. As per the proposed funding pattern suggested the share of KfW loan

and grants shall be Rs.71.14 Crores and Rs.62.77 crores which comes to around 34% and

30% of the total estimate project cost whereas the share of ECMC is Rs.61.89 crores

(29.58%) of the total estimated project cost. The scheme covers the core area of Erode city

and the four adjoining municipalities’ viz., Veerappachatram, Kasipalayam, Surampatti

and Periyasemur. The coverage area of the project is 500 km with 80,416 house service

connections. The proposed sewerage treatment plant is designed with the capacity of 50.55

MLD for the intermediate population (2025). An area of 18.20 acres of land has been

identified at Peelamedu for the proposed STP. The added areas of two town panchyats and

five village Panchayats area are not covered in this project. Hence, ECMC has planned to

prepare the DPR for providing Under Ground Sewerage System in added areas of ECMC.

Table: Salient features of the UGD system under Implementation

Description Area & Parameters

Coverage Erode, Periyasemur, Veerapanchathiram,

Surampatti and Kasipalayam

Total length of sewer system 504.04 km

Extent 53.64 sq.km

Projected population 476,000 in 2025, 576,000 in 2040

Total no. of sewer connections 75738



Total length of pumping main 36.72

Land requirement of STP 18.0 acres

Project Cost Rs. 209.22 crores


However, there is an immediate need to cover the entire extended areas under the proposed

scheme. An integrated system has to be designed and implemented for an additional

population of 172,500 (balance area population by 2031). As per rough estimate the

system will cost Rs.150.50 crores which is proposed to be implemented in the as part of

medium to long term project.

B. Construction of Community Toilets ECMC has initiated a project to construct 47 community toilets out of which six no’s

have already been constructed.

3.5 Storm Water Drainage

3.5.1 Extent of Drains

Erode City Municipal Corporation does not have an effective network of storm water

drains to dispose storm water generated in the city. The total length of drains is about 550

km, which covers about 79% of the total road network in the Corporation area.

Table: Details of Road side storm water drains

Description Length of Drain

(in Km)

Road Length

(in Km)

Coverage Area

(%)

Kuchha Drain 340.00 430.00 79

Pucca Open Drain 210.00 266.72 79

Pucca Closed Drain 0.00 0.00 -

Total Drain 550.00 696.72 79


3.5.2 Open Drains

In the absence of closed drainage system in the city, silting and uncontrolled solid waste

dumping in the extended area causes blockages and stagnation of waste water flow. The

drainage system in the city carries the wastewater as well as storm water from the entire

Corporation area and finally discharges into the Perumpallam Odai and Pitchakkaran

Odai. The overall ground slope is gradual and from south to north.




drainage system. But in the absence of closed drainage system in the city, the open

drainage system of Erode carries the wastewater as well as storm water from the entire

Corporation area and finally discharges into the Perumpallam Odai and Pitchakkaran

Odai.



3.5.3 Issues

The open drainage system intended for storm water is contaminated with effluent from

septic tanks, sullage from houses and hotels. This in turn leads to increasing pollution of

the receiving watercourses, ponds, tanks and ground water, and causing environmental

degradation.

There is a need to rejuvenate the natural drainage pattern by de-silting the natural drains

and nallahs and removing the blockages in the natural drainage paths. To support the

natural system, the storm water drainage network along the roads also needs to be

strengthened in terms of coverage and capacity.

3.5.4 On-going Projects

ECMC is currently (2013-14) implementing Storm Water Drainage for length of about 20

km along the main roads and the cost of the same is approximately Rs. 8.83 Crores.

3.6 Solid Waste Management

People often form their impressions about a city from the general level of cleanliness that

they see around the city, especially the presence or absence of garbage on the streets and

open places. Thus the quality of operations of a city’s solid waste management system is

crucial for the overall impression of the urban local body. Collection and disposal of waste

is an obligatory function of the Erode Municipal Corporation. This section reviews and

analyses current solid waste management practices of Erode Municipal Corporation and

proposes the future requirements for upgrading the SWM services. The information on the

current practices was collected from the Municipal Corporation and through field

inventories and reconnaissance surveys. Component wise information comprising

collection, storage, transportation, processing and disposal was collected to understand the

existing solid waste management systems. The information on community practices of

storage, collection and disposal was collected during field visits. Based on the analysis of

the secondary data collected, gaps and deficiencies in the present system were identified.

3.6.1 Waste Generation

According to the estimates of Municipal Corporation, Erode generates waste at 450 grams

per capita per day. At this rate, the 4.98 lakh of people (Census 2011) of the city generate

225 MT of waste every day, the major waste generating source being domestic sector.

Markets, shops, commercial areas, hotels, restaurants, hospitals, construction waste &

drain silt are the other major contributors. The physical composition of waste according to

the municipal officials (not based on any primary survey or analysis, but is computed

adopting the values suggested in studies based on surveys conducted in similar cities) is

indicated in the table below:

Table: Broad Physical Composition of MSW in Erode

Category Net Weight in %

Bio-degradable 70–75% (approximately)

Recyclable-paper, plastic, metal, rubber, glass, rags 15%

Inert 10%




ECMC is responsible for collection, transportation and disposal of all solid waste

generated in the city, except untreated bio-medical waste, which is assigned to a private

operator on pay and use basis by the respective hospital.

3.6.2 Source Segregation

The segregation at source is generally found marginal except the easily salable materials

which can be recycled. Some amounts of paper, plastics, metal, etc. are salvaged at source

itself. About 20% of the households practice segregation of organic waste.

3.6.3 Collection & Transportation

It is estimated that around 75% households and 20% non domestic sources are covered

under the door step / kerb side collection, while the rest deposit the waste either in the

community containers, designated collection points or dispose locally in open spaces

convenient to them. People also resort to throwing waste in drains, alongside road margins

and public/private vacant spaces. However, not many overflowing bins / containers are

seen during reconnaissance visits. This indicates that there is regular removal waste from

containers.

At present, door to door collection is being done in 20 wards, out of which segregation at

source is carried out in 12 wards. Action is being taken to purchase additional push carts

after which the entire Corporation will be covered under door to door collection. Bio

medical wastes are collected by the Corporation from the door steps of hospitals to the

tune of 1 MT daily and burnt in compost yard.

Municipal Corporation has a mixed fleet of vehicles to collect waste from secondary

collection points and dispose the same to a compost plant and disposal site, located 5 km

away from the city center. The entire area of the Municipal Corporation is divided into

four zones for operational purposes. The vehicle & equipments currently available for

SWM operation is listed in the table below.

Table: Vehicles and Equipments available for SWM

Vehicle/Equipment Zone

I

Zone

II

Zone

III

Zone

IV

Total

Push cart with four bins 25 25 60 60 170

Push cart with two bins 20 20 - 30 70

Plastic bin (small) 40 40 80

Plastic bin (large) 150 100 160 410

Tri-cycle 35 20 49 10 114

Dumper bin 80 125 110 98 413

Dumper Placer 4 6 5 5 20

Compactor 0 0 1 0 1

Tipper lorry 4 4 4 3 15

Tractor with tipping trailer 1 2 1 1 4

Sullage tank 1 1 2

Excavator Loader (JCB) 1 1 1 1 4



Dual loader dumper placers are the transportation vehicle engaged apart from tipper trucks

and one refuse compactor. Bulk of the waste is transported by the dumper placers taking

an average of 6-7 trips a day. ECMC estimates collection and transportation of around

85% of the waste generated per day, which comes to be around 191 MT/day.

Though the corporation is procuring vehicle and equipment to collect and transport the

entire waste reaching Municipal stream, in the absence of proper vehicle/equipment

upkeep, the availability is around 60% only.

3.6.4 Treatment & Disposal

Out of the 191 tonnes of waste collected per day, 120 tonnes of waste is processed by a

private operator (IWMUST). IWMUST operates the plant on BOT basis producing 10

tonnes/day of compost. The compost yard is situated at Vendipalayam which is 5 km from

the Bust station of Erode. The extent of compost / disposal yard is 30.87 acres, out of

which 4 acres of land is occupied by the private operator. They have signed a contract with

the Corporation to treat 120 MT of waste every day. The compost rejects and the reaming

waste is being dumped at Vendipalayam which is close to Cavery River from where water

is drawn for drinking.

The private operator segregates the wastes manually at the yard and makes manure out of

the degradable wastes. Manure is processed through windrow method. For every one ton

of manure that is sold, the private operator pays Rs. 50 to the corporation, as per

agreement. Corporation is operating a shredding unit to process some amount of plastics

for subsequent use for road work.

ECMC is constructing another windrow area unit at Vairapalayam to treat the remaining

waste. This site which is adjacent to existing site is also on the river banks.

3.6.5 Institutional Arrangement

ECMC manages all the tasks related to Solid Waste Management with various

infrastructures for collections, storage, segregation, transportation, processing and

disposal. The Health Department of the Corporation, headed by Health Officer, is vested

with the responsibility of day-to-day solid waste collection, treatment and disposal. The

Engineering Department is responsible for procurement & civil works required for SWM

operation. The Corporation organizes the collection and transportation through a team of

its own conservancy workers and a fleet of vehicles and dumper-placers. The waste is also

collected with the help of Self Help Group (SHG) by carrying out door-to-door collection

in certain areas. The Health Officer is assisted by Sanitary Supervisors, Sanitary Inspectors

and Sanitary workers at the field level. Overall there are 740 sanitary workers out of the

sanctioned strength of 857.

The expenditure is mainly met from the Revenue Income – Property tax. No User fee is

charged for door step collection from household while fee averaging to Rs. 300/

premise/month is collected from non domestic sources. Salary expenditure covers the

salary to Dept workers as well as to the SHG paid at Rs. 190/day/SHG worker. The

income from SWM is the royalty paid by the Private operator of compost plant at Rs.

50/tonnes of compost produced, the sale of part of compost rejects and user fee for door

step collection from non domestic sources.



3.6.6 Summary

The salient features of solid waste management in Erode are presented in table below:

Table: Salient Features of Solid Waste Management

Functional Element Present Scenario

Waste generation Municipal Corporation estimates 225 tonnes / day at a per

capita of 0.45 kg/capita

Segregation at source About 20% of the households practice segregation of organic

waste

Storage at source About 50% of households store waste in the buckets supplied by

Municipal Corporation and 25% non-domestic sources store

mixed waste in plastic buckets, cartons, bags

Collection Total collection is 85% of total waste generated

Primary collection is 75% of domestic source and 20% of

non-domestic sources are covered under door step collection

Street sweeping 342 km of road length is covered out of the total 720 km road

network

Wheel barrows, Bin Carts are used

Secondary storage 800 numbers of dumper containers are provided open collection

/ direct transfer points and 40 dumper placers are available (572

dumper containers are provided at various places and 18-20

dumper placers are operating daily)

Transportation Mixed vehicle fleet of tractors, tipper and dumper placers

On an average around 191 tonnes of waste is transported

daily

Frequency of removal Around 300 secondary storage areas are attended daily, Limited

operation during Sundays and holidays

Processing City level Compost Plant to process 120 tonnes/day at

Vendipalayam

In order to process another 120 tonnes/day, windrow area is

under construction at Veerappanchathram

Disposal Crude dumping of mixed waste in haphazard manner

No environmental controls

Large volume of waste remains uncovered with leachate

flowing down to the river from the Vendipalayam dumping

area

No Leachate treatment done

Vehicles, tools,

equipments Containerized carts (primary collection and street sweeping),

Tractors with open/closed trailers, trucks & dumper placers

No landfill equipments used except an excavator loader

Parking / Workshop

and repair facility Vehicles are parked in the main and zonal office premises

No Municipal Corporation workshop facility & it depends on

private workshops

No annual contracts

On an average vehicle availability is 60%

Man Power The day-to-day operation is carried out by corporation



Functional Element Present Scenario

workers

There are 740 workers and 388 SHG workers

16 wards are managed by Self Help Group

Cost recovery The O&M costs are met from the revenue income and from user

fee collected from non-domestic sources, royalty of compost

and sale compost rejects to cement company

Community

partnership

Active participation of about 50% of the community in door

step collection, but no involvement in local level treatment

Recycling activity Plastic shredding and utilization for road bitumen work,

informal collection of recyclables

NGO/CBO

partnership Residential Association in Door step collection

NGO participation is marginal

Private partnership Private operator for composting, SHG in primary Collection

Management Decentralized management – city divided to four zones with

responsibility of primary collection, sweeping and

transportation

Planning The door step collection system is planned & implemented in

an organized manner, including monitoring

Other functions – secondary storage, transportation, treatment

& disposal.

Lacks proper planning & management

Legal and Regulatory

aspects Appreciable in primary collection

Moderate in processing

Minimal in landfill

Source: Erode City Municipal Corporation & Consultant Analysis

3.6.7 Projected Future Generation and Demand for Treatment & Disposal

The total solid waste generation is around 225 TPD presently. With a growth 2% per year,

the projected generation is presented in the table below, assuming that 15% of the waste

generated will be recovered, separated for reuse, sale and local level treatment / disposal,

the waste reaching Municipal stream for collection as 85%. This percentage may be

further reduced by motivating community for decentralized treatment at household level or

community level.

Table: Projected Generation, Treatment & Disposal of MSW

Description Existing 2017

(Short

Term)

2024 (Mid

Term)

2042

(Long

Term)

Per capita waste generation in

grams/day

450 495 563 765

Total waste generation/day in

tonnes

225 275 354 663

A. Waste reaching Municipal

stream (85% of total waste

generated) (TPD)

191 234 301 564

Organic fraction (70% of A) 133 164 211 394



Biomethanation (20% of organic

fraction ) 27 33 42 79

Composting (80% of organic

fraction) 106 131 169 315

RDF (15% of A) 29 35 45 85

Landfill (15% of A) 29 35 45 85

3.6.8 Issues

Absence of Segregation at Source and System for Segregated Collection - Though the

ECMC estimation is coverage of door step collection in 75% households, segregated

collection is not being done. The collected waste of around 191 tonnes/day is also un-

segregated waste. The secondary storage facilities and the dumpers under daily operation

are listed in table at an estimated rate of 6 trips per day per dumper placer makes around

110-120 trips each of 1.5 tonnes making the total to 160-180 tonnes/day. Tipper Lorries

carry up to around 30 tonnes/day resulting in average total transportation of around 191

tonnes/day.

Low Coverage of Street Cleaning - Street sweeping covers only the erstwhile Erode

Municipal area and some parts of extended area. Other parts are covered occasionally. No

sweeping schedule as per the SWM Manual 2000 is practiced mainly due to inadequacy of

workers. ECMC has estimated the requirement as 1,500 workers against the current

strength of 740 workers

Water Contamination due to absence of SLF / Remediation and LTP facilities at

Treatment / Disposal Site - The material transported is partly composted (only 120 tonnes

mixed waste and a small fraction (plastics) recycled. Around 45 tonnes of compost rejects,

non compostable material out of 120 tonnes along with the remaining waste is dumped at

Vairapalayam, Vendipalayam and Semur. The leaches of the open dump yards directly

contaminate the groundwater and surface water resources resulting into unsuitability of

water for drinking at many places. A study conducted in Feb. 2009 indicated that the water

quality parameters exceed the permissible limits for drinking at many locations.

Vendipalayam and Vairapalayam being close to the River, pollution issues are serious. The

site where the present operation is carried is environmentally sensitive area as it is close to

the river.

Absence of Vehicle Parking facilities and facilities for Basic Maintenance of

Vehicle/Equipments - The parking facilities for vehicles and regular washing,

maintenance facilities are not provided. Absence of regular basic maintenance facilities

result in corrosion of Vehicle & Bin especially the dumper bins.

3.6.9 On-going/Proposed Projects

ECMC proposes to procure 50 acre of land to develop treatment plant and landfill. To

upgrade collection and transportation, ECMC has estimated further requirement of

vehicles and equipments for 2013-14 under Integrated Urban Development Mission.

ECMC has decided to phase out the refuse compactor and go for more nos. of dual

loader dumpers and dumper placers. The cost of vehicles to be procured in 2013-14 is

estimated to be around Rs. 2.2 crore. Moreover, a 10 TPD capacity Bio Methanation



Plant is also proposed to be developed in 2013-14 having an estimated cost of Rs. 1.6

crore.

3.7 Roads and Transportation

3.7.1 Regional Roads

ECMC has good connectivity by road and rail to other parts of the country. It is connected

with the surrounding towns like Coimbatore, Salem, Bhavani, Karur, Kangayam, Sathy

and Chennimalai by means of arterial roads radiating from the town. National Highway 47,

connecting Salem-Coimbatore-Kochi-Kanyakumari, passes through the north-western

fringe areas of ECMC. Some of the arterial roads radiating from Erode town intersect with

NH47. The major roads of the ECMC connecting the Erode with the major towns in

surroundings are mentioned below:

Table 3.5 Major Roads

Erode - Bhavani Road State Highway

(SH-20)

leads to Bhavani in North

direction, running parallel to

River Cauvery and joins with

NH47

Erode -

Sathiamangalam Road

State Highway

(SH15)

leads to Gobichettypalyam and

Sathiamanagalam in the north-

west direction

Erode – Nasiyanur-

Thingalur Road

State Highway

(SH173)

A road leading to Nasiyanur in

west, crossing NH47 and further

leading to Thingalore and other

villages in the west direction

Erode – Perundurai

Road

State Highway

(SH96)

Leads to Perundurai in the south-

west direction, and Connects to

NH-47 which further leads to

Coimbatore

Erode - Chenniamalai

Road

Major District

Road

Leading to Chennimalai in the

direction of south west.

Erode – Arachalur-

Kangayam Road

Major District

Road (MDR)

to Kangayam and Palani in the

south direction

Erode - Karur Road State Highway

(SH84)

Connecting Karur in south

eastern direction

Erode – Shivagiri Road State Highway

(SH84A)

Connecting Shivagiri and Muthur

in southern direction

Source: Highways Department, Govt. of Tamilnadu (www.tnhighways.org)

The connectivity of NH 47 is of high significance for economic development of Erode, as

it connects with major trade centers like Salem and Coimbatore, and further to port city of

Kochi.

3.7.2 Major City Roads

Many of the above-listed SHs/MDRs pass through the core central areas of Erode. The

portion of these roads, falling within the core Erode town areas, are observed to be the



main routes for intra-city movement, and have commercial and mix-use activities along it.

Besides these roads, there are other important internal roads like Bhavani Road, Brough

road, E.V.Nanjappa (Mettur) road, Gandhiji Road, KNK Road, RKV Road etc. These are

the roads that carry huge volume of traffic and connect to major places like Railway

station, Bus Terminal, Commercial areas, Textile Markets, Public Institutions, Cauvery

River etc.

3.7.3 Length and Surface of Roads

The total length of road network within ECMC area is around 807 km, of which 110 km

length of roads are state highways or PWD roads. The remaining 697 km length of roads

has different types of surfaces. Following Table presents the category wise road length

within ECMC, maintained by ECMC and other agencies:

Table 3.6 Category wise Road Length

Surface Type Length (km) Percentage

Concrete (P.C.C) 87.547 10.85%

Black Topped/Bituminous Topped 499.780 61.95%

Water Bound Macadam 9.415 1.17%

Earthen 99.969 12.39%

Others 0.000 0.00%

Total Length of ECMC Roads 696.711 86.37%

State Highways/ PWD Roads 109.980 13.63%

Total 806.691 100.00%


The per-capita road length in the Corporation area is 1.62 m that is marginally low than the

normative standard of 1.75 m. The city has a road network density of 7.4 km/sq.km which

is less than the normative standard of 10-15 km/sq.km. In addition to these, the key

normative standard for adequacy of roads is the share of area under roads to the total land

area, which shall be around 17-20% depending upon the scale of the town. The present

roads within ECMC (806.69 km length) is estimated to have an approximate area of 15.51

sq.km constituting around 14.2% of the total ECMC area (109.52 sq.km).

Around 86% of the total roads are having surface of concrete / bituminous in nature. The

conditions of major roads are observed to be satisfactory. Concrete roads that were laid in

recent years are in satisfactory condition too. However, the roads in the extended areas are

narrow and of poor conditions. The width of some of the existing roads within the city and

extended areas are not sufficient to meet the traffic. The Cauvery Bridge is a constraint for

heavy traffic congestion within the town. The interior roads and roads within individual

residential colonies are narrow, and many of which are badly maintained.

3.7.4 Footpaths and Parking

The clear driveway, footpaths and parking facilities were found lacking along the streets

within Corporation limits. Since the shoulders are not paved, the roads surface gets

covered with the soil, making it dangerous to ride. The low-lying areas observe water

logging during rains.



Parking facilities in Erode are inadequate. It is evident from the fact that the city roads are

clogged with parked vehicles. This results in congestion on the roads and leaves little room

for pedestrians. It has become extremely important to develop and enforce strict parking

norms in new buildings and make suitable parking arrangements in public spaces and or

develop multi-level parking through PPP.

3.7.5 Central Bus Terminus

The Central Bus Terminus spread over an area of 11.20 ha, is the first in India, to provide

an air-Conditioned waiting hall for passengers. It is classified as Grade A and serves the

City and Mofussil bus terminals as well as mini-bus services. The terminus has 73 number

of bus bays. Being the most important entry-exit point of the city, the terminus has a

capacity to handle over 1,000 buses and 70,000 passengers a day. The amenities provided

in the terminus include smaller eateries, locker rooms, travel agency offices, shops, public

convenience, ATMs, dormitories (A/C and non-A/C), round-the-clock security, pure

drinking water free of cost, and first-aid facilities and medical assistance.

3.7.6 Adequacy Level Indicators and Future Demand

The adequacy of road network of ECMC has been studied by comparing the available

road network with the prescribed benchmark for several indicators. The estimated future

demand and the gap also have been worked out. Refer following tables.

Table: Road Network – Adequacy Level

Proposed indicator Benchmark Current scenario

Area of Road Network as % to total ECMC Area 17-20% 14.2%

Per Capita Road Length (in meters) 1.75 1.62

Road Density (km road length/ sq.km. area) 10-15 7.4

Table: Future Demand- Area of Road Network

S.

No

.

Particulars Existing

Level

2017

(Short Term)

2024

(Mid Term)

2042

(Long Term)


1 Area of road

network in

sq.km. (% of

ECMC Area)

15.5

(14.2%)

17.5

(16%)

2.0 19.7

(18%)

4.2 21.9

(20%)

6.4

3.7.7 Issues

The major issues related to the road and transportation has been highlighted below:

Deficiency of Road Network in terms of overall area occupied by roads

Absence of proper road network in the expanded areas

Conditions of roads in expanded areas and internal city areas are not

satisfactory

Around 15% of roads are earthen and WBM roads

Portion of SHs/MDRs falling within core city area observing heavy traffic

volume leading to congestion



Road side parking and pedestrian movement on carriage ways adds up to the

problem of insufficient width, and traffic congestion

Inadequate & improper development of foot-paths, on-street parking, median,

etc.

Many of the important road junctions within the core city area need

improvement for better traffic management

Several important junctions seek interventions like Fly-overs, Sub-ways, etc.

Absence of dedicated off-street parking lots in the commercial areas, along

major roads, around transport nodes

Inadequate access across River Cauvery limiting the interaction with the

hinterland on the other side

3.7.8 Proposed Roads as per Master Plan

The Master Plan prepared by Erode Local Planning Authority has proposed three major

interventions with respect to road network. The Plan proposed to form a Ring Road (80’

wide) starting from Bhavani Road & Sathy Road in north, passing through western

fringe areas of Periyasemur, connecting to Shivagiri Road in south. The road is to be

very important for the efficient functioning of overall road network and urban sprawl of

Erode in future. However, it is important to note that the said Ring Road is to under the

purview of Highways Department, Govt. of Tamilnadu. Apart from this, there are two

other roads proposed in the Master Plan- one is city internal road, running parallel to

Gandhiji Road and connecting Brough Road to EMM Samy Road; the other one is a link

road in fringe areas of Periyasemur.

3.7.9 On-going / Proposed Projects

As part of the Integrated Urban Development Mission 2013-14, ECMC has proposed to

take up several projects of roads and transportation. ECMC has scheduled to construct 3

bridges, as mentioned below, having an estimated cost of Rs. 265 lacs, during 2013-14.

High level bridge at Kasipalayam Malaikovil in Ward no. 37

RCC bridge across Perumpallam Odai at Anna Tax Road

RCC bridge at Katta Bomman Street in Ward no. 50

3.8 Street Lighting

The provision and maintenance of streetlights is an obligatory function of Erode City

Municipal Corporation. There are 18,437 streetlight poles in Corporation Area. The

spacing of streetlight pole is not fixed as per standards. Large spacing of light poles leads

to inadequate illumination and thereby results in darkness in most part of the city. Table

below summarizes the street light composition of the Erode City Municipal Corporation.

Table: Break-up of Street Lights

Description Units (Nos.) Proportion (%)

High Mast Lamps 25 0.14%

Mercury Vapour Lamps 409 2.22%



Sodium Vapour Lamps 2,759 14.96%

Tube Lights 12,764 69.23%

CFL 1,485 8.05%

MHL 265 1.44%

MML 15 0.08%

T5 Lamp 715 3.88%

Total 18,437 100%


The lighting is adequate in Erode except in the peripheral wards (extended areas) where

the average spacing between lamp posts is more than 40 m. While the extended areas also

need to improve upon the road length along with provision of streetlights, the core areas

need more lighting.

Though the percentage of Tube Lights is highest and occupies around 69% of the total

street lights, the percentage of high power lamps presents a satisfactory picture. These are

adequate in number and in the right quantum not to let the energy costs go up. At present,

the Corporation spends Rs. 8.0 lakhs/month on electricity charges for street lighting.

ECMC has proposed to implement energy saving measures for street lights through PPP

mode, by carrying out investment grade audit through Energy Service Companies. The

investment grade audit along with replacing tube lights with LED fittings, fixing energy

savers, light controllers, individual and central monitoring devices is estimated to cost

around Rs. 1887 lacs. Out of this, Energy Efficiency projects including investment grade

audit in street lighting through PPP mode having the cost of around Rs. 4 Crores is

proposed to be implemented during 2013-14.



3.9 Basic Services for Urban Poor

Erode’s sound economy, has led to rapid urbanization in and around the city. The large

influx of the migrants has resulted in formation of slums. The city presents a wide range of

activities in various industrial, institutional, commercial and trade sectors. Growth in such

activities, possibilities of absorption in various service sectors, scope of employment in

trade and business activities, hawking, retailing, carting etc. have attracted rural poor to the

city.

3.9.1 Slums and Slum Population

As per the ECMC records, the total number of slums in Corporation area is 131 (86

notified and 45 un-notified slums) with 18,944 households with a population of 75,776

(15%). Tamil Nadu Slum Clearance Board (TNSCB) is the agency responsible for

redevelopment and rehabilitation of slum settlements across the state. ECMC’s role is

limited to provision of basic services such as water supply, sanitation etc. to the slum

dwellers.

TNSCB is conducting survey of slum settlements in ECMC for the Rajiv Awas Yojna

scheme. The survey process is on the verge of completion. The detail of slum households

identified during the survey is presented in the table below:

Table: Slum household details

Zones

No. of

Slums

No of HHs as per

RAY Survey

HHs where RAY

Survey is pending

Zone 1 33 3,511 555

Zone 2 19 1,094 116

Zone 3 22 2,090 487

Zone 4 47 3,120 346

Total

9,815 1,504

Source: TNSCB official

It is observed that Zone 4 has the highest number of slums but Zone 1 has the maximum

number of slum households. Slum households from 27 slum settlements have not been

included in the above table as they have been designated as ‘Developed Slums’ (slums

with adequate infrastructure facilities including housing). Most of these slums are

existing on lands with ‘Natham Patta’ tenure.

3.9.2 Slum Improvement- Past Works and Requirements

TNSCB has constructed 228 at Suriampalayam in the recent past. The scheme was

implemented from the funds received under the 13th

Finance Commission. Suriampalayam

is one of the largest slums in ECMC with 545 households (as per RAY survey). It is the

only scheme implemented by this agency over the last two decade.

The interaction with the TNSCB officials revealed that some of the slums were facing

critical problems with respect to the basic services particularly water supply, public

convenience, storm water drainage and street lights. The details of these slums are



presented in the table below:

Table: Details of Slums with Inadequate Services

Sr.

No.

Name Zone Ward Ownership HHs

(RAY)

1 Nelikaradu 1 2 Natham Patta 73

2 C.M. Nagar 1 3 Natham Patta 180

3 Keel kuravan parai 1 - Private Land

4 Kamraj Nagar 1 5 Natham Patta 267

5 Bharathi nagar 1 5 Natham Patta 259

6 Adukkuparai 2 18 Natham Patta 114

7 Therkku Pallam 3 31 AD Colony 98

8 Karaparai 3 33 Odai 330

9 Karaparai Pudhu Colony 3 33 Odai 89

10 Kuyavan Thittu 4 54 Odai 52

11 Iraniyan Veethi 1 4 - Odai -

12 Silon Colony 4 49 Patta 102

13 Kaveri Karai 4 60 River 66

14 Karattankadu 4 40 Natham Patta 480

Apart from the RAY, there is no other ongoing scheme related provision of housing units

in any of the slums located within ECMC area. RAY is currently in the pre-

implementation stage which involves household and physical surveys.

3.9.3 Summary of Infrastructure Services in Slums

Based on the discussion with the Corporation officials, the overall view about the existing

infrastructure facilities in the slums are presented below:

Table 3.9: Existing Infrastructure facilities, Notified Slums

Housing Housing condition in many slums is in poor state. A large proportion

of households stay in kutcha houses. Majority of households reside

in houses with built area less than 100 Sq. ft. It was noticed that

residential units of most of the unapproved slum households was

temporary, where settlement have developed within the last 10 years

due to growing migration in the city.

Water Supply Public hand pumps and public stand posts are the main source of water

supply to many slums. Only 20% of people have house service

connections, most of these being from Developed Slums. The local

authorities have provided Water Taps/Hand pumps/PSPs to serve the

slum population.

Sewerage and

Sanitation

In the extended area of the corporation, the most prevalent safe

sanitation facility available in slum is public conveniences. However,

existing sanitation facilities are inadequate to meet the requirement.

The population in slums either use nearby public toilets or defecate on

open lands.



Solid Waste

Management

The slum settlements are inefficiently addressed with respect solid

waste management especially regularity of collection and

transportation of waste. As per the discussions with the slum dwellers,

it was stated that only very few slums have dustbins, which are also in

bad condition and need replacements. As a result, in most of the

slums, the waste is disposed in nearby vacant areas creating

unhygienic conditions.

Roads The local authorities have provided BT roads in the slums located

within the city limit, but in the extended area of the corporation, the

roads in the slums are area un-surfaced only. As per discussion with

the local authorities have the plan to improve the road conditions and

strengthening the existing roads

Storm Water

Drains

As per discussions with local authorities, it was indicated that slums in

Erode city is not provided with pucca Storm water drains. Although,

there are kutcha drains, which were often noticed to damaged or

clogged due to solid waste dumping. Hence, there is a demand for new

formation of drains along existing roads and new roads.

3.10 Education

Erode is developing into an educational hub; at present there are 36 Primary schools, 10

High schools and 16 Higher Secondary schools under the jurisdiction of ECMC. At the

higher/ professional education levels, there are 3 engineering institutes, 1 medical college,

1 nursing institute, 1 pharmacy college, 3 arts and science colleges and 1 textile institute.

ECMC also has 2 teachers training institutes and 1 Industrial Training Institute.

A good number of institutions for higher-level education, like medical and engineering

colleges, are also present in close proximity to ECMC in good numbers.

Table: Future Demand Sr.

No

.

Particula

rs

Sugges

ted

Norm

Existing

Level

2017

(Short Term)

2024

(Mid Term)

2042

(Long Term)


1 Primary

Schools

(nos.)

1 no. /

5000

pop.

36 111 75 126 90 173 137

2 Secondar

y Schools

(nos.)

1 no. /

15000

pop.

26 37 11 42 16 58 32

3.11 Health

Erode provides medical facilities across service levels and categories. There are numerous

full-service hospitals in the city. These are owned and operated by several agencies

including the government, charity organizations, corporates, etc. Following Table presents

the detailed health facilities available within the Corporation limit.



Table 3.8: Health Facilities in Erode

Type of Health Institution Nos. Govt. / Pvt.

Government Hospital 1 Govt.

Nursing and Health centre 3 + 5 Govt.

Dispensary 2 Govt.

Child welfare centre 2 Govt.

Hospitals 63 Private

Polyclinic 30 Private

Eye clinic 2 Private

Nursing home 4 Private

Maternity centre 3 Private Source: Erode City Municipal Corporation

The government general hospital has bed strength of 608 beds while the other 2

government hospitals i.e. Senthil Multispeciality hospital and Nallaswamy hospital which

have bed strength of 150 and 60 respectively. ECMC has good number of privately run

hospitals and clinics; major private hospitals having bed strength in the range of 75 to 100

are CK Hospital, C.S.I. Hospital, K.M.C.H., Maruthi Hospital etc. Following Table

presents the detailed health facilities available within the Corporation limit.

While the population of the city is increasing day by day, the number of beds of

government hospitals remains more or less constant. There is an urgent need to expand the

bed strength of these hospitals to satisfy the growing demand. Since poor and below-

poverty-line patients go to these hospitals, it is extremely important to increase the bed

strength of the Government Hospital.

Table: Future Demand- Area of Road Network Sr.

No

.

Particula

rs

Sugges

ted

Norm

Existing

Level

2017

(Short Term)

2024

(Mid Term)

2042

(Long Term)


1 General

Hospital

(no. of

beds)

500

beds /

2.5 lac

pop.

818 1109 291 1257 439 1733 915

3 Nursing

Home &

Health

centre

(nos.)

1 no. /

30000

pop.

8 18 10 21 13 29 21

Urban Environment

3.12.1 Existing Pollution Sources

Polluting industries in the extended areas of ECMC which mainly comprises textiles and

tanneries creates the major pollution problems. Erode and Namakkal have emerged as

the new destinations for dyeing units that had to shut shop in Tirupur after the Madras

High Court ordered their closure for flouting pollution norms two years ago.



In spite of the efforts of the Tamil Nadu Pollution Control Board (TNPCB), several

illegal units continue to thrive in the Erode district and dump tonnes of effluents into the

Cauvery and Bhavani rivers that feed agricultural lands of thousands of farmers. The

increase in the pollution levels has led to a sharp fall in the agricultural productivity in

many parts of the district.

Ground water, in general, is moderate when compared to other areas in the State. The

depth of groundwater table in Erode city varies from 1 to 15 m below the ground level.

Based on the studies conducted by Central Ground Water Board, it is inferred that

various environmental impacts has led to depletion of ground water levels, drying up of

shallow wells, decrease in yield and increased expenditure on power consumption for

drawing water from progressively greater depths.

With greater utilisation of water for industrial and domestic use and also due to the

increased use of agricultural chemicals, industrial pollution, ground water quality is

deteriorating rapidly in the area. Diminished water quality also means that the quantum

of fresh water available for particular uses is reduced, or that the water can be used only

after treatment. Studies have also indicted that the ground water is highly polluted due to

indiscriminate discharge of industrial effluent and unlined landfills in and around Erode.

The current location of the head works has not only issues of pollution but also the

availability. The discharge of effluent of septic tanks to the surface drains and open

defecation are contributing to the pollution of the receiving watercourses, ponds, tanks

and ground water, and causing environmental degradation.

In the absence of Under Ground Sewerage System, disposal of the sewage is normally

done by way of individual facilities and the sullage is disposed through the open drains.

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

sanitation units and through public/community toilets. Apart from the domestic effluents,

industrial effluents from textile and paper industries are also being let out into streams

and water bodies without necessary treatment.

The textile bleaching and dyeing industries scattered across the Erode and surrounding

region, illegally pollute the land and water with waste and byproducts of their production

processes.

The economic growth of the city has to address the environmental hazard caused due to

the paper, leather, dyeing and bleaching industries. A detailed study needs to be carried

out for implementation of the Industrial Pollution remediation measures for Erode

Region.

Further, the issues related to the rapid urbanization have resulted in a significant impact

on the environment within ECMC area.

Air: Particulate Matter (PM) values in the central core area of the city found on

higher side due to traffic congestion

Noise: Noise level in the core city area is high due to the continuous traffic flow

Water: Over the years the water source has become highly polluted at the present

drawl points due to discharge of untreated sewage from adjoining towns and



effluent from tanneries, bleaching and dying industries along the banks of River

Cauvery and River Bhawani.

Tanneries

In the High Court of Judicature at Madras, dated: 20/12/2004, the Supreme Court gave

several directions related the functioning of tanneries in the five district of Tamil Nadu

State viz. North Arcot Ambedkar, Erode Periyar, Dindigul Anna, Trichi and Chengai

M.G.R.

The important directions given by Supreme Court are as follows:

Confer on the said Authority all the powers necessary to deal with the situation

created by the tanneries and other polluting industries in the State of Tamil Nadu

Shall implement the Precautionary Principle and the Polluter Pays Principle,

wherein the money shall be deposited, along with the compensation amount

recovered from the polluters, under a separate head called Environment

Protection Fund and shall be utilized for compensating the affected persons as

identified by the Authorities and also for restoring the damaged environment

Direct all the tanneries in the five districts to set up CETPs or Individual

Pollution Control Devices on or before November 30, 1996.

The Honourable Mr.Justice P.Bhaskaran on 12.10.99 visited Erode and SIPCOT

Industrial Estate, Perundurai and recommended that all tanneries in Erode must

be shifted to State Industries Promotion Corporation of Tamil Nadu Limited (in

short SIPCOT), Perundurai in order to reduce pollution in the river Cauvery and

Kalingarayan Canal, the main sources of drinking water and irrigation of Erode

Distirct.

About 50 tanneries in and around Erode Town have been asked to relocate their

units at SIPCOT Complex, Perundurai.

On 18.12.2002, the Tamil Nadu Pollution Control Board issued noticed to all 44

tanneries situated at Erode to shift to SIPCOT, Perundurai within 3 months. On

27.01.2003, the Central Leather Research Institute released posters to relocate all

the tanneries at Erode to SIPCOT, Perundurai.

Further, it was also suggested that no polluting industries should be allowed within 1 km

of the embankments of the water sources.

3.12.2 Environmental Regulations

This section reviews various Environmental acts/policies applicable to the area. The

review includes the Environmental and Social framework of TNUIFSL, operational

policies / directions of the World Bank and sector-specific environmental policies and

regulations of the Govt. of India and Govt. of Tamil Nadu.

Water (Prevention and Control of Pollution) Act, 1974: These laws seek to

control pollution of water and enhance the quality of water. Under this law, it is

mandatory to obtain Consent to Establishment of STP and discharge of effluents

and pay consent fees to Tamil Nadu State Pollution Control Board (TNPCB) for

any municipal projects causing water pollution.



Air (Prevention and Control of Pollution) Act, 1981: This Act provides the

prevention, control and abatement of air pollution. With a framework similar to

the Water Act, the Air Act gave the Central and State Board’s authority to issue

consents to industries operating within designated air pollution control areas.

States also prescribe emission standards for stationary and mobile sources.

Environment Protection Act, 1986 & Notifications: In order to create

overarching national environmental legislation, the EPA articulates a policy for

Environmental Protection covering air, water and land and provides a framework

for Central Government coordination of Central and State Authorities established

under previous laws, including the Water Act and Air Act. Under this umbrella

Act, the Central Government must set National Ambient and Emissions

Standards, establish procedures for managing hazardous substances, regulate

industrial sitting, investigate and research pollution issues and establish

laboratories and collect and disseminate information. Among other relevant

legislation, the Public Liability Insurance Act (PLIA) of 1991 mandates that

business owners operating with hazardous substances take out insurance policies

covering potential liability from an accident and establish Environmental Relief

Funds to deal with accidents involving hazardous substances. The National

Environmental Appellate Authority Act of 1997 requires the Central Government

to establish an authority to hear appeals on area restrictions where operations will

not be carried out or will be carried out with certain safeguard measures. In 2005,

Parliament enacted the Right to Information Act designed to promote greater

transparency and accountability of the government and public participation in

decision-making.

Environmental and Social Framework (ESF) & TNUDF: TNUIFSL has

categorized urban infrastructure projects into three categories viz. E-1, E-2 and E-

3. As per Environmental& Social Framework (ESF), E1 projects require EA and

approval of World Bank prior to implementation. The projects comply with the

environmental resettlement and social standards set forth in the TNUDF’s

Environmental and Social Framework.

Operation Policy & Directorate of the World Bank: Operational Policy 4.01

(OP 4.01) is one of the ten safeguard policies of the World Bank, which provides

the Environmental Impact Assessment (EIA) guidance for the lending operations.

The OP 4.01 requires the borrower to screen projects upstream in the project

cycle for potential impacts. Thereafter, an appropriate Environmental Assessment

(EA) approach to assess, minimize / enhance and mitigate potentially adverse

impacts is selected depending on nature and scale of project. The EA needs to be

integrated in the project development process such that timely measures can be

applied to address the identified impacts. The policy requires consultation with

affected groups and NGOs to recognize community concerns and the need to

address the same as part of EA.

Tamil Nadu Pollution Control Board (TNPCB): The TNPCB has the mandate

for environmental management at the state level, with emphasis on air and water

quality. The board is responsible for:

o Planning and executing state-level air and water initiatives,



o Advising state government on air, water and industry issues,

o Establishing standards based on National Minimum Standards,

o Enforcing and monitoring of all activities within the State under the Air

Act, the Water act and the Cess Act, etc.

o Conducting and organizing public hearings for projects as defined by the

various Acts and as stipulated by the Amendment (April 1997) to the EIA

Act; and, Issuing No-objection Certificates (NOC) for development

projects defined in such a way as to include road projects.

o The Consent Order from the Tamil Nadu Pollution Control Board in

pursuant to the Water (Prevention and Control of Pollution) Act of 1974,

the Cess Act of 1977 and the Air (Prevention and Control of Pollution)

Act of 1981.

o The State Pollution Control Board issues a Consent order after accepting

the application for the project.

Noise Pollution Rules, 2000: Ministry of Environment and Forest (MoEF)

Government of India considered it necessary to regulate and control noise and

generating sources with the objective of maintaining the ambient air quality

standards in respect of noise. Keeping this objective in mind MoEF enacted Noise

Pollution (Regulation and Control) Rules, 2000 which regulates the increasing

ambience of noise level in public places from various sources, inter-alia,

industrial activity, construction activity, generator sets, loud speakers, public

address systems, music systems, vehicular horns and other mechanical devices

that have deleterious effects on human health and the psychological well-being of

the people.

3.12.3 Green Cover

As per the Forest Survey of India’s Report ‘State of Forest Report 2009’, the estimated

tree cover in the State was 4,968 sq.km which comes to about 3.82% of the geographical

area of the State. The study covered inventories in eleven districts viz. Coimbatore,

Dindigul, Erode, Kancheepuram, Kanniyakumari, Madurai, Namakkal, The Nilgiris,

Theni, Thiruvarur and Virudhunagar.

Forest and Tree Cover in Tamilnadu

Category Area

(sq.km)

% of Geographical

Area

Tree Cover 4968 3.82

Forest Cover 23338 17.94

Total Forest & Tree

Cover

28306 21.76

Source: ‘State of Forest Report 2009’, Forest Survey of India

Further, the district wise forest cover study in 2007 study showed that Erode district with

total geographical area of 8209 sq.km had 439 sq.km under Very Dense Forest category,

1409 sq.km under Moderate Dense Forest category and 367 sq.km under Open Forest

category – with the total of all the three categories comprising nearly 2215 sq.km which

is about 26.98% of the total district area.



Though there are vast lands still under agriculture use in the newly merged areas of

ECMC, the erstwhile Erode Municipality area is not having much land under agriculture.

While there are no notified forest areas within ECMC, the city has few parks and gardens

serving as green cover and recreational spots for the citizens. The major parks/gardens

are VOC Park, PS Park, Thangaperumal Park and Periyar Nagar Park. The brief details

of these parks are as under-

Table 3.9: Parks/Gardens in Erode

Name of Parks/Gardens Location Area (in Ha)

VOC Park Bhavani Road 11.72

PS Park Brough Road 0.07

Thangaperumal Cauvery Road 0.20

Periyar Nagar Park Periyar Nagar 1.24 Source: Erode City Municipal Corporation

3.12.4 Issues

Though there is no major polluting industry in the core city area, the city is

indirectly affected by the pollution from the industries present in extended areas

In the absence of proper sewage system the waste from the septic tanks flows in

the drains and pollutes the river

The city, especially the core area, experiences heavy traffic movement which

results into air pollution

Green Cover- ECMC has very few developed parks/gardens resulting in very low

per capita green cover. The tree plantation on road side and in open areas is very

scarce.

Even though there are various acts and policies for prevention of pollution, the absence

of strict implementation and regular monitoring has caused aggravation of the problem

due to pollution.

3.12.5 On-going / Proposed Project

The Ministry of Environment and Forests (MoEF), Government of India, through the

National Regional Conservation Directorate (NCRB) has formulated a National River

Action Plan (NRAP) with an aim to improve the quality of grossly polluted rivers in the

country. One of the rivers which have been identified under the NRAP is the Cauvery

River and a Cauvery River Action Plan has been launched for controlling the pollution.

The Cauvery River Action Plan in Tamil Nadu is being implemented by the Government

of Tamil Nadu through the TWAD Board. One of the work taken up by the TWAD Board

under NRAP aims at the control of pollution of the Cauvery river caused by the waste

water discharge from Perumpallam Odai.

TWAD Board has proposed to construct pick-up weir in Perumapallam, at Karavaikkal

and the dry weather flow in the drain will be diverted to the new pumping station. From

Karavaikkal the waste water will be pumped to and treated at sewage treatment plant to be

located in Lakkapuram. The effluent is to be used for irrigation purposes at the farm site to

the extent possible and the excess will be discharged into a nearby natural drain. The

proposals are now under implementation and comprise the following components.



De-silting of the Odai – involves the cleaning and purification of the Odai

Construction of Retaining Wall – carried on for protecting the odai from any

further degradation after the cleaning works are done

Pump sump at Karavaikkal

Submersible Pump sets 4 duty+2 standby- each 9,030 lpm (13MLD)x 41 head

Pumping main – 800 mm dia PSC; length of 4.8 km

USAB Reactor – based sewage treatment plant to treat 24 MLD sewage

The Perumapallam Odai project is proposed to be developed at an approximate cost of

Rs 70.0 crore. The DPR for the same has already been prepared. Checking the flow of

waste water into Perumapallam Odai shall be taken care of through implementation of

this project. The project shall be funded through grants from NRAP and hence the cost of

the same has not been incorporated as a part of Capital Investment Plan prepared for

ECMC CDP.

3.13 Tourism and Heritage

3.13.1 Major Attractions

There are several ancient structures mainly religious which are more than 1,000 years old

and hold significant historical importance. These religious premises along with the major

heritage structures which are found in and around Erode have been described below:

Thindal Murugan Temple

Thindal Murugan Temple is one of the major worship

places in the region. The worship centre is dedicated

‘Lord Muruga’ especially denoted as ‘Tamil God’, the

reincarnation of Lord Vishnu. This revered place is

positioned on the Thindal village at a hillock that is

located at a distance of 6 km from the centre of the

town. Thindal Murugan Temple can be approached

from hill steps along the road route.

Spread over an area of 6.25 acres and positioned at an elevation of 50 m, the temple was

the chief worship centre of Mysore's Kingdom in yesteryears. The 750 years old temple

features Rajagopuram on the peak. The temple was renovated around 2-3 years back.



Periamariamman Temple

Periamariamman Temple is

one of the major locations that

was founded by Kongu

Cholas. The shrine is believed

be more than 1,200 years old,

which is associated with

Hindu Mythology.

As per the legend, 'Mariamman', Queen Goddess had a dynasty at the place. The

Goddess had a gift to cure ailments such as small pox, chicken pox and other skin

disorders. The temple is frequented by devotees irrespective of caste, creed and religious

differentiation. The temple complex sprawls over an area of 3,500 sq.ft. Panguni Ther

Thiruviza and Pongal is one of the special festivals of the temple. During this festival

each and every family of the town offering and respecting the ‘Goddess’ through their

‘Ma-vilaku’ worship. The entire temple was renovated in the year 1969 by devotees.

Arudra Kabaliswarar Temple

This is one of the ancient

Hindu shrines & dates back to

1,200 years. During the period

of ‘Kongu Chola’ this temple

was built by “Karikal Chola”.

Situated in the centre of

Erode, two beautiful

Rajagopuram (entrance) of the

temple draws attention of the

devotees.

The temple is dedicated to Lord Arudra Kabaliswarar and the Goddess Varunambigai

Amman. Other deities featuring in the shrine are Mahaganapathy, Kalyanasubramanyar

and Sanesswarar. The festivals such as Shiva Rathiri, Aani Thirumagnanam, Navarathiri

and Vijayadhasami are the main ones which are celebrated.

Kasthuri Aranganathar Temple

This is one of the ancient temples of the region.

The 1,080 years old temple belongs to the

Chola period, which was constructed by 1st

Paranthaga Chola King. The sanctum of the

temple houses God Kasthuri Aranganathar and

Goddess Kamalavalli Thayar along with

Anjanayar. Situated in the middle of the city,

the temple hosts celebrations of festivals like

Vaigunda Ekadasi and Puratasi Ther Thiruviza.



Mahimaliswarar Temple This temple is among the chief attractions of the city which was built in the 12th century.

Constructed under the reigns of Narasimha Pallava King, the temple is dedicated to God

Mahimaliswarar and Goddess Mangalambikai. The highlighting feature of this temple is

Rajagopuram, the main entrance of temple. Chithirai Sadhaya Ther Thiruviza is the chief

festival that is celebrated with great enthusiasm. St. Mary’s Church

The church also called as town church is more

than 145 years old and was constructed in

year 1867 and the extension was done later in

the year 1892. Besides, the church was further

renovated by Father Joseph with the help of

natives of Erode in 1964. The 100 ft high

church construction features a holy bell.

Along with the church complex, there is an

elementary school run by the church in the

same campus. Huge Jesus statue is situated in

this Catholic Church. Brough Church

Brough church is one of the CSI church which is more than 83

years old. During the year 1864 Mr. Antony Watson Brough,

an Australian came to India with an aim of Public Service and

settled at Erode. Along with his public service activities, in the

year 1928-29 he has constructed a CSI church. And in the year

1930 Arch Bishop initiated the church for worship. Since then

the church has been denoted in the name of the founder as

‘Brough church’. This church is situated at centre of Erode

(near to Pannerselvam park) gradually Brough church became

a land mark of Erode and the church road called as Brough

road.

Vellode Bird Sanctuary

Vellode Bird Sanctuary is one of the favoured locations of travellers that is spread over

an area of 77 hectares. Located in the Vadamugam Vellode village, the reserve lies in the

city outskirts at a distance of 12 km. Unlike other bird sanctuaries, this sanctuary is

concentrated on storage tank and there are no forests around. The sanctuary provides a

habitat to innumerable resident and migratory bird species. Along with bird species, the

sanctuary has fishes and other aquatic organisms.



Ramanujan Museum

The Corporation has already passed

the resolution to convert into a

mathematics museum the house

where Srinivasa Ramanujan was

born. A proposal to convert the house

on Azhagiya Singar Street into a

museum will be submitted to the

State government. It was only

recently discovered about the birth

place of Ramanujan. Government Museum

Government Museum is the prominent

gallery that exhibits regional art and

traditions. The Museum was opened to the

public in 1987. The important exhibits are

inscription of Kongu Chola, hero stones

from Bargur, Tanjore paintings, manuscripts,

coins, geological objects, Kodumanal

antiques and other pre-history items. It has

both botanical and zoological specimens

also. The Museum is known for its collection

of palm-leaf manuscripts and coins.

The museum has about 70 sculptures, some dating as far as the 12th century. There is

also a stone shot - used like cannon balls - with Tamil numerals. This was reportedly

used in one of the Anglo-Mysore wars, and was found near Sathyamangalam. Experts

are of the opinion that this museum has a tremendous art value. The museum's area at

present is a little over 1,200 sq.ft. Given the number of exhibits it has, the ideal space

requirement is around 3,000 sq.ft. more idols and inscriptions being unearthed, those

associated with the museum demand an easily identifiable place with a greater carpet

area.

3.13.2 Issues

In spite of presence of several heritage structures above 1,000 year old, planned

effort has not been taken to promote the tourism activities.

Lack of tourism infrastructure



4 URBAN GOVERNANCE

4.1 Administrative Structure

The Commissionerate of Municipal Administration is the nodal Department for

coordinating and supervising the functions of all Municipalities and Municipal

Corporations of Tamilnadu state except the Corporation of Chennai.

The city of Erode is governed by a civic administrative body known as Erode City

Municipal Corporation. The Corporation is administered by the Mayor of the city and the

executive body is looked after by the Corporation Commissioner. The activities of ECMC

are administered by its zonal offices. The City is divided into 60 electoral wards and 15

sanitary divisions.

The Corporation council, the political arm of the Corporation, consists of 60 elected

councilors, each representing one ward. The Mayor heads the Corporation council, which

performs its duties as per the provisions of the Municipalities Act. The political wing

provides an overall direction for the Corporation and performs its functions through a set

of committees constituted for the purpose.

The executive wing is responsible for the daily operations of the Corporation and is headed

by Commissioner. The Commissioner is the administrative head of the Corporation and is

supported by different departments in the operations. Various departments such as General

Administration, Engineering and Water supply, Revenue and Accounts, Public Health

and Town Planning their specific activities. Through these departments, the Corporation

provides various services such as water supply, street light, maintenance of roads,

drainage, public health, medical, registration of birth and death etc.



As on date, the staff strength of the Corporation is as follows. The vacancy rate in Erode is

17%.

Table 4.1 Staff Strength

S.No. Department Filled

Positions

Vacant

Positions

Total

Required

1 General Administration 973 128 1,101

2 Public Health 76 37 113

3 Engineering and Water

supply

154 43 197

4 Town Planning 123 63 186

Total 1,326 271 1,597 Source: Erode City Municipal Corporation

ECMC has also entered into public-private partnership contracts for the delivery of some

its services. The level of private participation varies across services.

Table 4.2 Level of Private Participation

Service/ Sector Role of Private Sector

Solid Waste Management Door-to-Door collection in few wards

Composting of Garbage through BOT basis

Street Lighting Recently floated tender for installations, operation

and maintenance Source: Erode City Municipal Corporation

In addition, the State Government’s line departments continue to play a crucial role in

urban basic service delivery. Sectors and agency involvement include:

Water Supply & Sewerage: The Tamil Nadu Water Supply and Drainage

Board (TWAD), an apex body of the State, is responsible for creation of

water and sewerage infrastructure in the state. However, in the case of

Erode, the system is being maintained by the Corporation.

Master Plan/Comprehensive Development Plan: The Town and Country

Planning Department (TCPD) prepares the Master Plan for the town, and

the mandate of implementing the Master Plan lies with the ULB – growth

is generally haphazard and unplanned, the Master Plan is rarely referred

to. However, with a vision to achieve planned growth, revision of Master

Plan is in progress.

Roads and Highways: Highways and Rural Works maintain the National

and State Highways that pass through the town/city. Municipal roads are

however created and maintained by the ULB.

Environmental Protection: The Tamil Nadu Pollution Control Board

(TNPCB) is responsible for environmental protection and enforcement of

rulings related to the same, passed by competent authorities.

Slum Upgradation: The Tamil Nadu Slum Clearance Board (TNSCB)

develops improvement schemes for notified/regularized slum settlements

in the city/town. Infrastructure provision is financed partly through loans

from the Housing and Development Corporation (HUDCO) and partly



through grants from GoTN and GoI. The corporation is responsible of the

infrastructure in the slums once the slums are handed over by the TNSCB

to the corporation

4.2 Reforms Initiated by the Municipal Corporation

Accrual Based Accounting System:

The Erode Corporation is following the Double Entry Accrual Basis Accounting. Under

the new accrual system of accounting all income whether received or accrued and all

expenses whether paid or outstanding in a financial year is accounted in the income and

expenditure account and all assets and liabilities of the Corporation are reflected in the

balance sheet. The income and expenditure account will reflect a real financial

performance of the Corporation in the year facilitating the Corporation administration to

take corrective and remedial measures to improve the financial strength of the Corporation.

Moreover the true financial status of the Corporation is reflected in the Balance Sheet from

which the financial liquidity is ascertained.

All the assets such as land, buildings, etc. and all the liabilities such as outstanding loans,

dues to other agencies are brought into the new Accrual Account. The accounts are

maintained in four Zones and main office to record the respective transactions and then

consolidated in the main office at the end of the financial year and sent to Audit.

E-governance:

E-governance at Erode Corporation is aimed to provide on-line citizen services,

information to all hierarchies and monitor performance of the Corporation. It is in practice

that citizens are approaching the Corporation to pay revenues, get certificates, approvals

etc., Adopting e-governance, the above activities are simplified and made possible at their

nearest Banks, Citizen counters and Information and Facilitation Counters. By e-

governance, the services of the Corporation can be made Easy, Transparent, Accountable

and Quick. The Citizens may be informed about their dues and revenue generation will be

faster and easier.

The salient features of e-governance include:

On-line dues payment like Property tax, Water charges, Non-tax,

Professional Taxes etc. Issue of various certificates i.e. Birth certificate, Death certificate,

Building Plan Approval, Trade License etc. Registration of On-line Grievances/Complaints

Area Based Property Taxation:

ECMC has already been following the area based taxation system for property tax. In this

system, the basic property tax is related to the plinth area of the building and its usage.

Energy Audit for Street Lights:

ECMC has initiated energy audit in street lighting through PPP mode in year 2013.



5 MUNICIPAL FINANCE

5.1 Introduction

The review of finances includes a time-series analysis of the income and expenditure of

the urban local body to ascertain the trends and the major sources and the uses of funds. In

addition to this, certain key financial indicators relating to property tax, non tax income,

per capita income, per capita expenditure and debt servicing, have been analyzed to assess

the financial performance of the municipality.

The finances of ECMC have been reviewed2 for five years from financial year 2007-08 to

2011-12. The financial data received for the 5th

year i.e. 2011-12 are unaudited. The Urban

Local Bodies (ULB’s) in Tamil Nadu have adopted the accrual based double entry

accounting system in the last few years. Currently the ULBs of Tamil Nadu maintain three

separate funds, namely General Fund (Revenue Fund), Water & Drainage Fund and

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

and Balance Sheet are maintained.

The Income and Expenditure Account of Municipal Corporation is maintained through two

heads viz. Revenue Account and Capital Account. In the Revenue Account, the financial

data is maintained under the heads of Revenue Income and Revenue Expenditure and

likewise in Capital Account, it is maintained as Capital Income and Capital Expenditure.

The sources of Revenue Income is further categorized as Own sources and External

Sources where own source comprises of tax and non tax revenues. The external source of

income comprises the Assigned revenue, Grant and Contributions.

Table: Classification of Revenue Items

Own sources Tax Revenues Property tax, Water tax, Advertisement

tax, Professional tax and Education tax

Non-Tax Revenues Service charges and fees viz. Water

Charges, Education charges, Shops and

market rent; Trade license and Building

license; Other Income.

External

sources

Assigned Revenue Entertainment tax, Surcharge on Sales

tax, Stamp Duty transfer

Grants &

Contributions

Devolution Fund, Other Grants and

Contributions

2 The financial information provided by the Corporation for the period 2006-07 to 2010-11 is the basis for

review of the current financial position of the Corporation



The core revenue receipts of the Corporation are broadly categorized as per the table

shown below:

The Revenue expenditure can be broadly categorized into Payment and Benefits to

Employees (Personnel cost and Terminal and Retirement benefits), Administrative and

Operating Expenses, Repairs & Maintenance Expenses, Finance Expenses, Provision for

Depreciation etc.

Capital Income of ECMC comprises of loans, grants and contribution in the form of sale

proceeds of assets and contribution. A major share of capital income is in the form of

grants. The loans/Grants/Contribution from Government (Central and State) and loans

from various funding agencies such as TUFIDCO, TNUIFSL, HUDCO, LIC and Financial

Institutions (FIs) etc, for undertaking specific projects are accounted as Capital Income.

The Capital Expenditure is the cost incurred on implementation of new projects, facilities,

purchase of equipments etc.



5.2 Overview of Financial Profile of ECMC

The capital account reveal a deficit for every year of the review period which shows

Capital investments are happening consistently and capital expenditure is exceeding the

capital income consistently. Even the revenue account shows a deficit over the review

period expect for the last year. It is inferred that ECMC has substantial reserves to cater to

the extra spending in both the accounts.

The capital account Income has swollen from Rs.43.46 crores to Rs. 83.88 crores at at an

average growth rate of 20.2% during the review period whereas the capital expenditure has

grown from Rs. 81.13 crores to Rs. 105.82 crores at an average growth rate of 8.4% over

this period. The Capital Utilization Ratio has remained well above 1 during the review

period.

Table 5.2: Classification of Revenue items

Sr. No. Items 2007-08 2008-09 2009-10 2010-11 2011-12

I Revenue Account

i Revenue Income 26.13 28.13 28.04 37.15 65. 44

ii Revenue

Expenditure 30.12 37.11 35.48 40.91 51.11

Surplus/deficit -3.99 -8.98 -7.44 -3.76 14.33

II Capital Account

i Capital Income 43.46 60.09 79.05 101.51 83.88 ii Capital Expenditure 81.13 97.19 107.64 123.64 105.82

Surplus/deficit -37.67 -37.1 -28.59 -22.13 -21.94

The Revenue income of ECMC has grown to a level of Rs 65.44 crores (unaudited figures)

from Rs 21.65 crores during the review period at an average rate of 28.5% whereas the

revenue expenditure has increased from Rs 30.12 crores in financial year 2007-08 to Rs.

51.11 crores (unaudited figures) in financial year 2011-12 at at an average rate of 14.8%.

The revenue account shows a surplus in year 2011-12 which may be attributed to the

increase in revenue base after the extension of ECMC limits.



5.3 Revenue Income (Tax Revenue)

The revenue income can be broken into own sources and external sources. Own sources

include the Tax revenues and Non Tax revenues whereas the external sources comprise the

grants, devolution fund and assigned revenue.

The tax revenue includes the property tax and professional tax. The property related tax are

commonly referred as house tax and include a tax on buildings or lands situated within the

local body. The Property Tax levied is 30% of the Annual Rental Value (ARV) and

includes the general tax (12%), water and drainage tax (39%) and education tax (5%). The

Annual Rateable Value varies zone wise and also varies as per the previous administrative

limits. The details are provided in Annexure-13. The revision in property tax was last

carried out in the year 2008-09.

Property Tax contributions to income from own sources were about 50% during the review

period from 2007-08 to 2011-12 whereas its share in revenue income was about 27%

during the same period on an average basis. This shows property tax is a major contributor

to the income from own source and the revenue income subsequently. The properties

under assessment have grown from 32,813 in year 2007-08 to 116,276 in the year 2011-12.

The sudden increase in number of assessments is due to the extension of urban limits of

ECMC in the year 2011-12. Between 2011-12 and 2012-13, the properties assessed have

grown at a rate of 1.4%.

The collection performance of Property Tax for the review period is almost 100% which

shows the willingness of the citizens to pay for the services being rendered by the

corporation. It may also be interpreted as an opportunity for ECMC to increase the tax.

Professional tax makes up hardly 5% of the total revenue income. It is collected from all

registered organizations, companies or firms, public or private, individuals and State &

Central Government departments. The average collection performance of Professional Tax

for the review period has been in the range of 85%-100%. The income from Professional

Tax has grown at an average rate of 23% in the first 4 years of the review period. It shot up

by over 100% in the 5th

year reason being the extension of ECMC limits.

The contribution of property tax and profession tax in the tax revenues is represented in the

chart below;



The Collection and balance statement for current and arrears of Property tax, Profession

tax, Water charges and Non Tax revenue for the financial year 2011-12 shown below

indicates that collection performance for the current year is above 90% for

abovementioned heads except Profession tax.

Table 5.3: Collection & Balance Statement as on 31

st March 2012

Sl. No. Name of the items % of Collection

Arrear Current Total

Property Tax

1 Collection Demand 59.0% 97.8% 96.2%

2 Vacant Land Tax 79.0% 60.8% 77.2%

3 Govt. Building 28.1% 28.2% 28.2%

4 Litigation 2.6% 8.2% 3.4%

Total 21.1% 90.8% 72.7%

Profession Tax


2 Litigation 0% 0% 0%

Total 22.7% 85.6% 70.4%

Water Charges


2 Govt. Building 63.8% 18.1% 34.4%

3 Litigation 3.3% 8.9% 4.2%

4 Way side Villages 0% 0% 0%

Total 65.7% 95.2% 93.2%

Non Tax


2 Litigation 0% 0% 0%

Total 87.0% 99.5% 87.2%

Grand Total 21.4% 92.4% 77.3%

5.4 Revenue Income (Non-Tax Revenue)

The Non tax revenue comprises income from service charges and fees, rent from leased

properties. The service charges and fees includes water supply charges, education fees,

medical fees, Trade license, Building license, advertisements etc. The share of Non tax

revenue to the Revenue Income was around 22% during the review period. The income

from leased properties contributes 2/3rd

of the share of revenue income. The Non tax

revenue has grown at an annual average rate of 5.4% except for the year 2011-12 when it

shot up by 61%.



5.5 Revenue Income (Other Sources)

The revenue income from other sources includes sale & hire charges, interest from

investments/ bank deposits and other income. Its share in revenue income has been in the

region of 8% during the review period and it has grown at an annual average rate of 3.9%.

5.6 Revenue Income (External Sources)

The revenue income from external courses comprises of Grants, Assigned revenue and

Devolution fund. Revenue Grants and Contribution mainly comprises revenue grants and

compensations from the State Government under various heads. The regular grants include

the SFC grants and the others include aid grants, grants for services like roads, buildings,

maternity and child welfare, public health, contributions for elementary and secondary

schools and etc. Grants which are for specific purposes are ad-hoc in nature.

The share of income from external sources to revenue income has been around 38% on an

average over the review period. This shows ECMC largely depends on income from

external source for its financial stability. The revenue income from external source has

grown at an average rate of 22.4% from year 2007-08 to 2010-1. In the year 2011-12, the

income under this head increased remarkably by 131% due to the impact of increase in

jurisdiction of ECMC.

Devolution fund has been the largest contributor of income from external sources with an

average share of around 88% during the review period. It has grown at a CAGR of around

16% from 2007-08 to 2010-11. Income through Assigned Revenues contributes around

13% (average) of revenue income. It declined at a CAGR of 3.4% upto 2010-11 and then

shot up by more than 150% due to expansion of ECMC limits. It is observed that the

inflow from this account head has been inconsistent due to delays in transfers and

deductions at source towards Corporation debt repayment commitments and/ or other dues

payable to GoTN.

SFC Devolution is major item of grants, which is transferred as part SFC recommendation.

The fluctuation in SFC grant is due to delay and deduction at source.



5.7 Revenue Income (Own sources Vs External Sources)

The Graph provided below shows that the contribution of own source was above 60% for

first 4 years but it dipped to a low of 51% in year 2011-12.

The following table shows the share of revenue from tax, non tax, grants and other income.

Table 5.4: Break-up of Revenue Income

2007-08 2008-09 2009-10 2010-11 2011-12 Revenue Income Actual (Rs. in Crores) Tax 7.91 9.38 10.30 10.51 17.45 Non tax 6.01 5.81 6.16 7.77 12.51 Grants 9.83 9.47 9.16 13.33 31.79 Other income 2.40 3.48 2.42 2.03 3.69 26.15 28.14 28.04 33.64 65.44 % share of Revenue Income by

source Tax 30% 33% 37% 31% 27%

Non tax 23% 21% 22% 23% 19% Grants 38% 34% 33% 40% 49% Other income 9% 12% 9% 6% 6% 100% 100% 100% 100% 100%

It is observed that the revenue from Grants has dominated the income from other sources

reaching to a share of almost 50% in the year 2011-12. The share of tax revenues has

remained close to 30% which needs to be improved.

The higher share of revenue grant income indicates the growing dependency of

municipal body on grants. This calls for a revision in the tax tariff of various services

provided by the municipality. There is a need to strengthen the municipal finance system

by efficient collection of taxes levied currently and introduce additional means of

generating revenues from own sources.



5.8 Revenue Expenditure

The revenue expenditure has grown from Rs. 30.12 crores to Rs. 51.11 crores over the

review period at an annual average rate of 20%. The share of Payments & Benefits to

Employees in revenue expenditure increased to about 50% in the last 3 years of the review

period compared to 40% in the initial 2 years. This is very high and must be brought down

back to the comfort levels of 40%. Inspite of staff vacancy levels of about 40%, expenses

under this head has been growing at an annual average rate of about 20% during the

review period.

Table 5.5: Break-up of Revenue Expenditure

2007-08 2008-09 2009-10 2010-11 2011-12

Revenue Expenditure Actual (Rs. in Crores)

Salary & Wages (Payments & Benefits to

Employees) 12.15 14.85 17.82 20.46 25.74

Administration & General Expenses 4.05 3.76 4.13 4.03 11.56

Repairs & Maintenance of Fixed Assets 2.11 1.74 1.46 1.43 4.23

Depreciation 5.56 6.23 6.48 7.60 8.51

Debt Servicing (financial charges) 6.24 10.54 5.58 7.39 1.07

30.11 37.12 35.47 40.91 51.11

% Share of Revenue Expenditure by Source

Salary & Wages (Payments & Benefits to

Employees) 40% 40% 50% 50% 50%

Administration & General Expenses 13% 10% 12% 10% 23%

Repairs & Maintenance of Fixed Assets 7% 5% 4% 3% 8%

Depreciation 18% 17% 18% 19% 17%

Debt Servicing (financial charges) 21% 28% 16% 18% 2%

100% 100% 100% 100% 100%

This is ‘Administrative & General Expenses’ have remained at around Rs. 4 crores levels

except for the last year of the review period when it shot up to around Rs. 11.5 crores

which is understandable as there was expansion of ECMC limits.

The share of Repairs and Maintenance in revenue expenditure has been very low at around

6% on an average over the review. Within this head, most of the expenses are accounted

for by the repairs and maintenance of roads, street lights, water pipeline network, public

convenience, vehicles and municipal assets. This needs to be increased to keep the

services at efficiency levels.

The provision for depreciation has Depreciation of Assets has been maintain a share of

around 18% during the review period.

Debt Servicing have fallen from a high of 28% in 2008-09 to as low as 2% in the year

2011-12 as repayment of many loan accounts were completed in this year. It may also be

viewed as an opportunity for ECMC to take up more loans for capital investments.



5.9 Income Distribution (Revenue and Capital Account)

The composition of income in terms of internal and external sources that determines the

fiscal autonomy of the ECMC is shown in the following table;

The above graph clearly indicates that ECMC has been heavily depending on external

sources of income which has been above 77% during the review period. Therefore, ECMC

needs to make efforts to scale up its internal income by exploring alternative source for

generating revenue.

The total loan outstanding as on 31st March 2013 is Rs. 77.18 crores. The break-up of

outstanding loan as per the source is represented in the table below;

Source of Loan Amount

(Rs. in Crores)

TUFIDCO 3.42

TNUDF 2.62

KFW 71.14*

* This loan has been sanction for Under Ground Sewerage Scheme. Rs. 71.14

crores is the sanctioned loan amount out of which Rs.25.44 crores has already

been received

5.10 Expenditure Distribution (Revenue and Capital Account)

Debt Servicing have fallen from a high of 28% in 2008-09 to as low as 2% in the year

2011-12 as repayment of many loan accounts were completed in this year. It may also be

viewed as an opportunity for ECMC to take up more loans for capital investments.

The distribution of expenditure as per Revenue Account and Capital Account is shown in

the Graph below;



The share of capital expenditure to the total expenditure has been close to 75% over the

review period. This indicates that ECMC has been aggressively involved in

implementation of capital projects which is a good signal but at the same time it needs to

focus more on maintaining the existing infrastructure and services.

5.11 Financial Performance Indicators and Issues

A set of key financial indicators has been derived using the financial data collected from

the Corporation for the review period. Table 5.6 present the indicators used to assess the

performance with regards to resource mobilization, fund utilization, financial performance

and collection efficiencies.

These indicators summarizes the financial performance of the Corporation with regards to

sources of funds. ECMC derives about 60% of its revenue income from own sources,

which is a good sign, while grants account for about 36% of the revenue income indicating

a greater dependency on Government grants.

Erode Corporation has maintained debt service ratio of 22% during the first 4 years of

review period which fell to mere 2% in the 5th

year. It showcases the strong leveraging

capacity of the Corporation and that loans can be raised with ease to meet the capital

expenditure for the projects identified.

Table 5.6: Key Financial Indicators

Indicators (as on 31st March 2012) Value Unit

A Income Ratios

1 Per Capita Income 1,313 Rs. p.a

2 Sources of Funds

a Tax Revenue to Total Revenue Income Ratio 26.6 %

b Property Tax to Total Revenue Income 21.6 %

c Assigned Revenues & Compensation to Total Revenue

Income Ratio 47.5 %



d

Rental Income from Municipal Properties to Total

Revenue Income ratio 7 %

e Fees and User Charges to Total Income Ratio 12 %

f Revenue Grants , Contributions and Subsidies to Total

Income Ratio 1 %

3 Growth in Revenue Income over the Review Period

(CAGR) 25 %

B Expense Ratios

1 Per Capita Expenditure 1,026 Rs. p.a

2 Uses of Funds

a Establishment Expenditure to Total Revenue Expenditure

Ratio 50 %

b

Administrative Expenses to Total Revenue Expenditure

Ratio 23 %

c O&M Expenditure to Total Revenue Expenditure Ratio 8 %

d Interest Expenditure to Total Revenue Expenditure Ratio 2.1 %

3 Growth in Establishment Expenditure over the Review

Period (CAGR) 20.2 %

4 Growth in O&M Expenditure over the Review Period

(CAGR) 19% %

5 Growth in Total Revenue Expenditure over the Review

Period (CAGR) 14.1 %

C Net Income Ratios

1 Cash Surplus/Deficit to Total Income Ratio 21.9* %

*It is surplus primarily due to the increase in Devolution

Fund by over 200% when new ECMC area financials

were consolidated.

D Efficiency Indicators

1 Property Tax Receivable to Property Tax Income Ratio 9.2 %

E Performance Ratios

1 Income per Employee 623270 Rs. p.a

2 Expenditure per Employee 476600 Rs. p.a

3 Income Per Citizen 1,313 Rs. p.a

4 Expenditure per Citizen 1,026 Rs. p.a

5 No. of Corporation Staff per 1000 Population 2.1 Nos.

6 Population per Property Tax Assessment 4.28 Persons

F Capital Ratio

1 Capital Expenditure to Capital Receipts Ratio 126 %

2 Financial Leveraging ratio 26 %

3 Capital Expenditure per Citizen 2124

4 Growth in Capital Expenditure Vs Growth in City

Population

G Debt Ratio

1 Debt Servicing Coverage Ratio 1.6 %

Resource Mobilization Indicators - The share of own source of funds in Total Revenue

Income has decreased from around 66% in 2008-09 to 51% in 2011-12. Such a fall is also



attributed to the fact that the capital income had increased 3 fold in 2011-12 as compared

to the previous year. This indicates the increasing dependency of the municipality on

income from grants.

Fund Application Indicators - These indicators are a measure to ascertain the utilization

from the ULB fund. In case of ECMC, on an average around 50% of the revenue

expenditure was spent on establishment heads whereas only 6% was spent on O&M. The

share of establishment to total revenue expenditure moved up from 40% levels in the

initial two years of review period to 50% levels in the last 3 years. The municipality needs

to maintain more control over establishment expenses to bring it back to the comfort zone

of 40% levels.

The average ratio of establishment expenditure to revenue income was above 60% for two

consecutive years i.e. 2009-10 and 2010-11 but it came down to about 40% in the year

2011-12 as revenue income grew by a hefty 95% in the same year when ECMC limits

were expanded.

5.11.1 Performance Indicators

i) Operating ratio (OR)

The average OR of Ankleshwar Municipality from 2007-08 to 2011-12 is 1.15. The

ratio being substantially higher than 1 indicates the deficit revenue account.

Therefore there is a need to improve the revenue income and control the revenue

expenditure. Revenue income can be increased by increasing the tariff for services

and its coverage.

ii) Capital Utilization Ratio (CU)

The average CU over five years is 1.47 which is quite high. CU greater than unity

means that ULB has incurred capital expenditure more than the capital funds

available. Though the CU has reduced to 1.87 in 2007-08 from 1.26 in 2011-12, it

is inferred that the ULD has been taking up new projects consistently over the

review period.

iii) Debt Servicing Ratio (DSR)

The DSR was above 20% levels for the first 4 years of the review period which

indicates the ULB has been utilizing its leverage capacity to a good extent. The

DSR touched a peak of 37% in the year 2008-09 which is very high compared to

the ideal limit of 25% but it came down to 2% in 2011-12 when some of the loan

account were closed after completion of repayment which can be viewed as an

opportunity for the ULB to take up new loans for capital investments due to the

increased leverage capacity.



6 POTENTIALS FOR DEVELOPMENT

6.1 Issues

The reconnaissance survey indicates that the Corporation is finding it extremely difficult to

manage current infrastructure demands, let alone deal with the accumulated backlog of

infrastructure maintenance and rehabilitation. This is compounded by demand of basic

infrastructure from extended areas, which further strains existing infrastructure resources

while creating additional demand for more infrastructure.

6.2 Stakeholders Consultation

The Stakeholders meeting was attended by

more than 30 stakeholders of the city which

includes representatives from various

departments of the civic body, traders, and

representatives of industry and community

welfare organizations. The following issues

were raised and suggestions made during the

Consultation meeting.

More thrust on drivers of the economy i.e. Textile, Agriculture and

Leather processing.

Need for developing Industrial Infrastructure to create more opportunities

for industrial growth Need for an integrated Turmeric marketing complex.

Industrial Estates, Horticulture Park and Leather Park though PPP

Commissioning of Agro-Mandi.

Processing of value added products (oleoresin, drumstick powder, jasmine

extract, jiggery etc.)

Support facilities like warehousing, logistics and cold storage facilities for

products like banana and other food products under PPP.

Common effluent treatment plant for Textile and Leather industries

Tapping of solar energy and wind energy need to be a part of the

development programme

To reduce traffic congestion in the inner city the government offices may

be relocated to the extended areas

Affordable housing in the extended areas.

Priorities for implementation of Integrated Water supply, Solid waste

management & Sanitation schemes for the Erode City Municipal

Corporation.

Improved transportation system and better road infrastructures

Expedite the construction of proposed Ring roads, bridges, to reduce the

inner city congestion and easy flow of traffic.

Recreational/ entertainment facility: Indoor stadium, Theme Park.

Creation of employment opportunities for graduates

Effective implementation of e-governance programme



6.3 Visioning Exercise

Strategic visioning exercise3 initiated by asking the participants to (1) identify the vision

and plans for their city; (2) challenges that hinder the implementation of the vision and

plans; and (3) possible solutions to these challenges. This exercise helped the Consultant to

identify the current situation and the responses to that situation. The Consultant also took

into account the “problem solving” approaches which helped in identifying the felt needs,

identification of problem, and analysis of causes followed by action planning. This

approach helps in appreciating and valuing the best of what is, envisioning what might be,

and dialoguing what should be.

The following summarize the responses from the participants.

Erode to be an Agro-Processing centre

Finalize Long term vision and action oriented plans

Accessibility to infrastructure services – the basic issue (Regulated water

supply, underground sewerage/drainage system, affordable housing etc.)

Improved Road networks with adequate parking

Major challenge is to plan the extended areas


6.4 SWOT Analysis

Based on the analysis of the city, a SWOT Analysis is presented here to assess the current

status of the city.

Strength Weakness

Good trade and Industry presence

Good Connectivity: Road and Rail

Erode, falls under the category of

highly urban with an urbanization level

of 51.22%

Surrounded Fertile agricultural

hinterland

Excellent industrial base of textile, agro

based & leather

Inefficient Traffic and Transport system

Inadequate service levels of physical

infrastructure especially water supply

and waste management

Ineffective drainage and absence of

underground sewerage system

Polluting industries in the extended

areas (textiles and tanneries)

Frequent power cuts causing disruption

to municipal services & industries

Opportunity Threat

Potential for trade/ Agro-processing/

Logistics ( Due to connectivity)

Introducing balance of projects for

infrastructure/environment and climate

change/ Non- Polluting industries and

services

Improving Municipal finance and e-

governance

Good Educational/ Health Institutes

Lack of quality work force

Presence and enlargement of slums

Lack of sufficient employment

opportunity (?)

3 conducted by the Consultant



How would you like to see your City in the coming years?

Trade Centre

Agro-processing Centre

Industrial Hub

Logistic Hub

Others, please mention ___________________

How to achieve the Vision?

Long Term (10 – 20 years)

Planned growth

Development of public amenities & infrastructure

Strong and well maintained road network

Sufficient green coverage

Environmentally safe city

Renewal of congested inner city areas (Periyar Street, Cuthery Road, Cauvery Road, KNK Road

etc.)


Mid Term (5 – 10 years)

Well maintained sewerage/drainage system

Regulated water supply

Strong road network

Strict enforcement of land use rules and regulations

Implement air quality monitoring and improvement program

Improve traffic through proper monitoring and equipment

Addressing the issued related to Slums

Affordable Housing


Short Term (1 – 5 years)

Clean city with safe drinking water

Regulated traffic

Parking requirements met

Garbage free city

Clear encroachments


What are the three critical challenges to implement the Vision?

Rapid pace of urbanisation

Haphazard growth, encroachments in the extended areas

Lack of infrastructure & amenities

Environmental concerns (air, water, noise pollution)

Lack of funding

Lack of urban governance


What are the possible solutions to these challenges?

Long term vision and action oriented plan to reach the vision

Proper planning and enforcement of Government policies

Stakeholder input through public meetings

Better Housing options

Availability of funding


Strict compliance to rules and regulations

Proper training for personnel

Improvement to law & order




6.5 Present vs Future

The presence of a number of economic activities has changed the character of the city

resulting to a mixed pattern of development. Without effective implementation and proper

vision, the city is experiencing a haphazard growth. This has been observed from the

following activities:

Excessive commercialization

Lack of proper infrastructure services (like water supply, sewerage, solid

waste, housing, etc.) restricting the development of expanded areas.

Traffic and transportation problems

Practice of sub-division of land

Very little attention paid to the development of inter-sectoral linkages.

The funding mechanism is not linked with plan proposals with the result

that most proposals remain unimplemented.

Keeping in view the development potential of the Region in general and Erode in

particular, anticipated growth of population (refer Table 6.1) and economic activities by

the year 2031, the existing infrastructure (refer Table 6.2) both local as well as regional,

needs to be augmented to cater the future requirements.

To overcome the bottlenecks of infrastructure and to have a planned development of the

city, planning interventions are necessary. The present situation indicates that the

development of the city is taking place without proper direction in a un-planned manner

and without adequate infrastructure. In order to strengthen the economic base and physical

and social development of the city, an integrated approach to Erode City Municipal

Corporation should be targeted as the theme for planning. The city should have a Vision so

that it will guide the process.

Table 6.1: Population Projections (detailed calculation for projections as

asked by TNUIFSL with justification?)

Year 2011 2017 2024 2031

1 Erode Municipality 1,56,953 1,66,609 1,78,627 1,91,512

2 Periyasemur 55,281 74,082 1,04,241 1,46,677

3 Kasipalayam 73,375 87,614 1,07,754 1,32,523

4 Veerappan Chathram 84,437 92,327 1,02,469 1,13,724

5 Surampatti 41,897 50,027 61,527 75,671

6 Suriyampalayam 28,554 34,095 41,933 51,572

7 B.P. Agraharam 24,615 26,915 29,872 33,153

8 Thindal 15,433 21,280 30,955 45,030

9 Villarasampatty 7,439 10,552 15,867 23,858

10 Gangapuram 5,840 7,179 9,134 11,620

11 Ellapalayam 2,503 2,989 3,676 4,521

12 Muthampalayam 1,794 2,020 2,321 2,666

Total 4,98,121 5,75,688 6,88,373 8,32,527

5,75,000 6,90,000 8,35,000Total rounded off to nearest 1000

Census

Population

Sl.No Name of ULBs Projected Population



6.6 VISION 2042

Erode, has a critical role to play in the economic development of the State. The present

scenario and changing character of the city need to guide the process of development of

the region. The vision for the city has been derived in a participatory process based on an

assessment of the current levels of service.

The competitive advantage of Erode is in its primary agriculture and textile activities. The

fertile soils and proximity to National Highway are key factors for development of an

agrarian economy. The city is known for its textile, turmeric, banana and jasmine

production and has several established warehousing facilities. It is also a key centre for

textile, distribution of agri products and education for nearby places and the district. The

city has a strong potential to grow as a trade centre for the region. The city has a location

advantage of being the connecting city between Coimbatore and Tiruppur.

The potentials of the city like commercialization and urbanization and identified thrust

sectors for development have to be used as a tool for development. Based on the growth of

various sectors and analysis of past trends it is proposed to develop Erode as the Regional

Hub catering to the requirements of textile, agro-processing, trade and commerce,

wholesale etc. This means changing the character of the city to predominantly

commercial. While the city is being prepared for changes, it is essential to have a clear-cut

perspective on the objectives and guiding principles for change. Based on this, sector

specific strategies have been developed and adopted while framing the action plan

Drawing on the vast Agro Resources of the region surrounding Erode, the city inherently

gains by establishing economic activities centered on Agro Produce for adding value in the

value chain of dominant crops such as Turmeric, Gingili oil, Sugarcane, jaggery and

Banana, with in Specially planned AGRO PROCESSING CENTRES which have cold

storage facilities, ware housing, weighbridges, wholesale & retail of raw produce,

processing units, logistic hub etc. A unique subsidiary zone to the above can house a

JASMINE PARK with the attendant paraphernalia for value addition. In addition there is

room for processing drumsticks and derivatives.

To further the established equilibrium in the three economic sectors for enhancing GDP, it is

advisable to incorporate a TEXTILE PARK and allow proliferation of a highly historical

textile trade which is already very profitable, and accessorize it by adding EOUs, Design

and Fashion Centers//Garments/ Home Furnishing accessories,

Established industries of Leather Tanning, Textile Dyeing & Bleaching, Paper Industries (all

heavily water intensive) should form co-operatives for control of pollution in river Cauvery

and treating waste water before discharge. SUSTAINABILITY GOALS can be achieved

through establishment of Windmill farms, Solar energy farms of PV cells, and Integrated

ECO CITY township development with at least 75% Green buildings (GRIHA or LEAD

rated). The Service sector growth can be contributed by establishing EDUCATION and

KNOWLEDGE ZONES.



6.7 Inputs required to achieve Vision 2042

To sustain such growth and to encourage the commercial growth, it is necessary to identify

the sectors which can be developed and contribute to the city’s economy. Study on various

sectors of economy of the city reveals that the following sectors have the potential for

future growth of the city:

Trade and Commerce

Textile

Agro-processing

Warehousing

Logistics

The State Government has been making all efforts to boost these sectors of economy by

giving suitable incentives, infrastructure support etc. However for the city to be attractive

and viable, both in development and functioning will require a good social and economic

base. Such an economic base can be achieved by providing the required physical and

social infrastructure facilities since the city has to house the industrial entrepreneurs and

trade entrepreneurs and their employees. Primary employment opportunities are already

available close by and they will be augmented by more industries gravitating to the area.

Provision has to be made for the secondary work force. Following are a few of sectors,

which require a greater degree of planning for achieving VISION 2031.

6.8 Growth Strategies

Erode City Municipal Corporation

Vision: Erode as the Regional Hub catering to the requirements of textile, agro-

processing, trade and commerce, wholesale etc.

Strategies:

Erode Trade Centre & Exhibition Hall

Integrated Turmeric Marketing complex

Turmeric-based paint manufacturing industry

Implementation of Erode Mega Cluster project under GoI assistance

Integrated Textile Trade Centre – Javuli Nagaram

Processing of value added products for oleoresin, drumstick powder, jasmine

extracts,, jaggery etc.)

Industrial Estates, Horticulture Park and Leather Park

Support facilities like warehousing, logistics and cold storage facilities

Common effluent treatment plant for Textile and Leather industries

Explore opportunities for solar and wind energy development

Water Supply: "Equitable access to safe drinking water to all in adequate

quantities"

Tapping raw water from a pollution free source / location

100% coverage as against the present coverage of 76.31%

Equitable distribution at an average per capita supply of 135 lpcd as specified

in CPHEEO Guidelines on Water Supply and Treatment

Mitigation of Unaccounted for Water (UFW)



Continuous Monitoring to ensure that the total losses do not exceed allowable

limit of 15% as per CPHEEO guidelines

Continual Leak Detection and Water Audit programs for further reduction of

the losses which would prove economical in the long-term

Improved water distribution system by controlling leakages, and installing bulk

domestic water meters, to control unaccounted for water (UFW)

Complaint Redressal system

Ensuring 100% collection of water charges

Rain water harvesting to recharge ground water

Controlled tapping of ground water

Develop a process for management and monitoring of quality of water supplied

and its implementation

Rain Water Harvesting

Regulatory measures for ground water use and extraction

Sewerage and Sanitation system: "To establish an effective waste water

collection, treatment and disposal system in order to promote a safe

environment."

Preparation of Integrated City Sanitation Plan including the extended areas

Achieve 100% underground drainage

Create public awareness

Construction of Sewerage Treatment Plant

Eradication of Open Defecation by 2015 through construction of public toilets

at appropriate places and special attention to be given to the slum areas

Interception and diversion of Perumapllam Odai and Petchikaranpallam Odai

under National River Action Plan (NRAP) and pumping of untreated sullage to

Lakkapuram for treatment works

Storm water drainage: To establish an effective system for storm water

drainage thereby reducing water logging during the monsoons and collection

of the runoff for utilization during the dry seasons.

1.1.5

Upgradation and renovation of existing drains

Public awareness to prevent throwing of garbage into the drains

Detailed design for storm water drainage of low lying Areas i.e. Shastri Nagar,

Kollampalayam, Muthuswamy Colony, Kattabomban Street – Zone IV

Solid Waste Management: "To implement an integrated SWM Programme

which is environmentally acceptable, technologically feasible, economically

viable to transform Erode city into the cleanest city in India."

Segregation and storage at source

Systematic collection, transportation and disposal of wastes

Improvement in the collection efficiency particularly in extended areas

Improvements in equipments

A Collection and Transportation (C&T) Plan that practices storage and

transportation facilities for bio-degradable and non bio-degradable wastes.



Minimum exposure of waste and avoid multiple & manual handling of waste;

Treatment of Organic Fraction through centralized plant for waste from dense

city centre area and decentralized units for low density peripheral area; and

A Scientific Waste Disposal facility, as per the MSW Rules, 2000.

Roads, Traffic, and Transportation: To increase mobility and improve the

condition of the roads and provide adequate parking spaces in the city.

Improve road surface and undertake regular maintenance

Develop new roads or improve earthen roads to BT roads in the expanded areas

Develop new link roads within the developed areas such that it critically

improves the mobility and efficiency of road network

Traffic management through one way systems and one side parking, especially

in dense areas

Improvement of geometrics of major traffic junctions

Identify and prioritize major junctions for interventions like Flyovers, Sub-

ways, Foot Over-bridge

Adequate parking development (incentive mechanism for PPP model shall also

be worked out)

New Bus Terminus at major junction in the outer areas to expand the overall

capacity and to facilitate the newer developing areas

Bridge across River Cauvery

Energy saving street lighting

Housing and Urban Poverty: Provision of Affordable Housing and enhancing

the basic services to urban poor

Comprehensive survey and slum upgrading strategy

Strengthen community based institutions to strengthen community

participation, increase access to institutional funds for housing, establish

support mechanisms for enterprise development, etc.

Implement Rajiv Awas Yojana (RAY)

Green Cover and Social Infrastructure

Provision of parks, gardens and recreational facilities in appropriate location

Tree Plantation along the major roads

Night Shelter at VOC Park (proposed)

Energy saving street lighting

Urban Governance and Municipal Finance

Computerization of all municipal operations

MIS maintenance and grievance redressal for citizens

Training need assessment to identify the gap and capacity building for the

municipal staff

Programme and Performance Budgeting (PPB)

Creation of Depreciation Fund for replacement of assets

Preparation of cash flow estimation



6.9 Environmental Concerns

In the absence of Under Ground Sewerage System, disposal of the sewage is normally

done by way of individual facilities and the sullage is disposed through the open drains.

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

sanitation units and through public/community toilets. Apart from the domestic effluents,

industrial effluents from textile and paper industries are also being let out into streams and

water bodies without necessary treatment.

The textile bleaching and dyeing industries scattered across the Erode and surrounding

region, illegally pollute the land and water with waste and by products of their production

processes.

The economic growth of the city has to address the environmental hazard caused due to the

paper, leather, dyeing and bleaching industries. A detailed study needs to be carried out for

implementation of the Industrial Pollution remediation measures for Erode Region.



7 PROJECTS IDENTIFICATION AND CAPITAL INVESTMENT

REQUIREMENTS

7.1 Overview

Public infrastructure is central to our prosperity and our quality of life. Infrastructure

investments are vital to strengthening the economy, creating jobs and building strong

communities in which residents enjoy a high quality of life. Despite significant

investments by all orders of government, more needs to be done to address current and

emerging municipal infrastructure needs.

To meet the challenges, sector wise capital projects have been identified hereinafter. The

projects include major infrastructural projects that are already identified and/or initiated for

water supply, sewerage, drainage and, other such projects. The projects are listed in

category of short term, medium term and long term to meet the long felt needs to provide

comfortable living environment to the citizens of Erode.

The capital investment required for identified projects have also been estimated and

presented along with the respective projects hereinafter.

7.2 Water Supply

7.2.1 Sector Goal and Strategies

During the stake holder consultations, the need for improving Water Supply has come up

as the top priority and the shared vision is:

"Equitable access to safe drinking water to all in adequate quantities"

In order to fulfil this vision, the deficiencies of the present system and options for

augmenting the system has to be looked into. It is a well-known fact that

potable safe water is absolutely essential for healthy living. Adequate supply of fresh

and safe drinking water is a basic need for all human beings. The key strategies for an

improved service delivery of water supply are as listed below.

Tapping raw water from a pollution free source / location

100% coverage as against the present coverage of 55%

Equitable distribution at an average per capita supply of 135 lpcd as specified

in CPHEEO Guidelines on Water Supply and Treatment

Continuous Monitoring to ensure that the total losses do not exceed allowable

limit of 15% as per CPHEEO guidelines

Continual Leak Detection and Water Audit programs for further reduction of

the losses which would prove economical in the long-term

Improved water distribution system by controlling leakages, and installing

bulk domestic water meters, to control unaccounted for water (UFW)

Complaint Redressal system

Develop a process for management and monitoring of quality of water

supplied and its implementation

Regulatory measures for ground water use and extraction



Rain Water Harvesting - In recent times, many of our cities have been experiencing

acute shortage of drinking water especially during summer months. The shortage of

ground water is more pronounced due to urbanization and limited open areas available for

recharge of ground water. Due to this increase in demand has resulted in many problems

like declining water levels, failures of wells / tube wells, deterioration in ground water

quality. To overcome this problem it is essential to conserve every drop of rain water that

falls in such areas. Till now the rain water has been allowed to go waste, channelizing it

into surface streams. It is high time to look into the potentials of storing the rainwater into

the underlying sub-surface porous formations to meet the ever increasing needs of water.

Government of Tamil Nadu is in the forefront in foreseeing this issue and making

rainwater harvesting mandatory. The main objective of making rainwater harvesting

mandatory in all buildings is to recharge groundwater and augment overall water

availability. This measure will ensure that the rain falling on all buildings is tapped and

directed to recharge groundwater aquifers or stored for direct consumption / use by

occupants of buildings.

While identifying the required capital projects and related investment, it is important to

incorporate the Detail Project Report for Dedicated Water Supply Scheme. The targets

set for various delivery parameters of water supply services are as presented in the table

below.

Table: Targets for Service Delivery- Water Supply

Components Standard

Norms

Existing

Status

Short

Term

(2017)

Medium

Term

(2024)

Long

Term

(2042)

Coverage-Water Supply

Connections (as % of

assessed properties)

100% 55% 100% 100% 100%

Per Capita Water Supply 135 lpcd 108 lpcd

(average)

135 lpcd 135 lpcd 135 lpcd

Metered Connections 100% 92% 100% 100% 100%

Extent of Non Revenue

Water

15% 12% 12% 12% 12%

Distribution Loss 10% 8% 8% 8% 8%

Continuity of water

supply (24x7)

Yes - No Yes Yes

Efficiency in collection of

charges

90% 96% 96% 96% 96%

Roof water harvesting Yes - Yes Yes Yes

Redressal of Customer

Complaints

80% - 60% 80% 80%

Extent of Cost Recovery 100% 100% 100% 100%



7.2.2 Dedicated Water Supply Scheme- DPR

Tamil Nadu Water Investment Company mandated to prepare the report has already

submitted the same to CMA (DPR for Dedicated Water Supply Scheme to ECMC – Feb.

2013). The DPR have taken the design period as 30 years (2015-2045) and have

incorporated following design components.

1. River water intake

2. Water treatment plant

3. Clearwater pumping

4. Clear water transmission

5. Ground level pumps and sumps for distribution

6. Feeder mains and Ground level sumps

7. Service Reservoirs

8. Re-modeling the existing distribution system and laying additional

distribution lines

The DPR is prepared for the Design Period of 30 years (2015-2045) for an estimated

population of around 9 lacs by 2045. The base year is taken as 2015, intermediate as 2030

and ultimate year as 2045 with treated water requirements in MLD as 86.96, 115.90 &

149.17 respectively. The DPR has estimated the water requirement considering 10%

distribution loss, 1% transmission loss, and 3% losses in WTP. The components of water

supply system, their nos., sizes and capacity, have been derived accordingly.

The Project cost for the Dedicated Water Supply Scheme of ECMC is estimated at Rs.

392.5 crores as per the DPR prepared by TWIC Ltd. for TUFIDCO.

7.2.3 Capital Investment Plan- Water Supply

Though, the above-said DPR is prepared for the horizon year of 2045, some of the

components have been proposed only up to medium term, which shall be augmented

and/or expanded to meet the long term requirements. In order to provide service to the

future increase in population, an additional connections around 15,700 nos. and 47, 600

nos. shall be provided during medium and long term respectively. After the review of the

said DPR, and incorporating the proposals therein, the projects to be developed to meet

the estimated demand have been identified and categorized as short term (2017), medium

term (2024), and long term (2042) projects.

Table: Capital Projects and Investment Requirements- Water Supply

Sr.

No.

Particulars Short Term

(2017)

Mid Term

(2024)

Long Term

(2042)

1 Raw Water

Intake

Civil works (for long

term), Pumps

Rs. 6.8 crore

2 Treatment WTP of 120 MLD

capacity- expandable to

155 MLD, Clear water

sump- 5 ML

Capacity

expansion to 155

MLD, Clear water

sump- 1.5 ML

Rs. 30.5 crore Rs. 8.4 crore

3 Storage Civil works for pumping GLSR- 5 ML,



Reservoirs stations (for long term),

Pumps, GLSR- 2 nos.

having total capacity of

15.5 ML, ELSR- 21 nos.

ELSR- 10 nos. of

20,000 Litres each


4 Distribution

Network

Transmission main- 23 km

(for long term), Feeder

main- 80 km (for long

term), Distribution system-

796 km (for long term),

House service

connections- 110,000

House service

connections-

15,700 (incl.

required

extension of

pipe network)

House service

connections-

47,600 (incl.

required extension

of pipe network)

Rs. 179.4 crore Rs. 8.6 crore Rs. 26.2 crore

5 Miscellane

ous

SCADA, EMP, Misc.

works & expenses

Rs. 60.4 crore

6 Overheads Rs. 65.7 crore

Total Rs. 392.5 crore Rs. 8.6 crore Rs. 38.2 crore

The short-term projects are as incorporated from the DPR for Dedicated Water Supply

Scheme. As the DPR is prepared for the horizon year of 2045, most of the need for long

term is addressed by investments in short-term. Although, the components like water

treatment plant, storage reservoirs and house service connections need to be augmented

during long term. The investment required in the short term is Rs. 392.5 crore, while

another Rs. 8.6 crore and Rs. 38.2 crore shall be invested during medium and long term

respectively.

7.3 Sewerage and Sanitaion


Following the vision of Tamil Nadu, the goal for the sector of sewerage and sanitation is to

"become totally sanitized, healthy environment ensuring sustainable good public

health for all their citizens with a special focus on hygienic and affordable sanitation

facilities for the urban poor and women" The stakeholders during stakeholder

consultation process expressed the same vision. Open defecation free status by 2015 is the

target set by GoTN.

At present most of the houses and other establishments are having their own septic tanks

arrangement. Effluent from septic tanks and sullage is let into the storm water drains and

nallah. Waste water thus generated is finally reaching water bodies located all-round the

city through various streams/drains, polluting the rivers. Hence it is required to provide a

sewerage system in ECMC.

Urban poor communities, as well other residents of informal settlements, have been

constrained by lack of tenure, space or economic constraints, in obtaining affordable

access to safe sanitation. In this context, the issues of whether services to the poor should

be individualized and whether community services should be provided in slums should be

addressed. However, the provision of individual toilets should be prioritized. In



circumstances where individual latrines cannot be provided, community toilets should be

constructed for group of families. Focus has to be on reaching the poor and unserved.

Eradication of open defecation: strategy should be for promoting individual

toilets. Open defecation free status by 2015 is the target set by GoTN

100% access to toilet facilities either through individual or community toilets

Awareness programmes to discourage open defecation

Safe disposal of human excreta and liquid wastes from all sanitation facilities

at an affordable and sustainable way

Promoting proper functioning of network-based sewerage systems and

ensuring connections of households to them wherever possible

Promoting recycle and reuse of treated waste water for non-potable

applications wherever possible to be encouraged

Promoting proper disposal and treatment of sludge from on-site installations

(septic tanks, pit latrines)

Proper operation & maintenance of all sanitary installations

The focus has to be on toilet coverage, provision and upkeep of public & community

toilets, septage system for area not covered under UGD with regular cleaning of septic

tanks / soakage pits and public awareness so that open defecation gets totally eliminated.

As adequate water supply to the tune of 135 lpcd is proposed, it will be adequate to

develop sewerage systems. Sewerage is more justified in term of its viability in high

density areas and the core city of the Corporation satisfies such a criteria. The fringe areas

are not densely populated where septic tank system can continue for some more time if de-

sludging of septic tanks are done on regular basis using suction machines and sludge is

treated. Hence it is proposed to have the UGSS system in two phases – first phase covering

core area and second phase the other areas. The targets set for various delivery parameters

of sewerage services are as presented in the table below.

Table: Targets for Service Delivery- Sewerage

Components Standard

Norms

Existing

Status

Short

Term

(2017)

Medium

Term

(2024)

Long

Term

(2042)

HH with individual

Toilets / Septic Tank

100% 65% 80% 90% 100%

Coverage of Sewerage

Services (Connections)

100% Nil 70% 100% 100%

Adequacy of Treatment

Capacity

100% 50% (on-

plot system)

100% 100% 100%

Efficiency of Reuse &

Recycling of Sewage

20% 0% 10% 20% 20%

Efficiency in Redressal of

Customer Complaints

80% - 60% 80% 80%

Extent of Cost Recovery 100% - 100% 100% 100%

Efficiency in Collection 90% - 90% 90% 90%



of Sewage Charges

7.3.2 Under Ground Sewerage System (UGSS): Phase 1

The Corporation has already started implementing the UGSS- Phase 1 which shall cover

areas of five municipalities of Erode Corporation. The salient features are:

Table 7.2: Salient feature of ongoing UGSS - Phase 1

Area covered 53.65 sq.km.

(Erode, Periyasemur, Veerapan chathram,

Surampatti and Kasipalayam)

Total length of sewer system 500 km


Total length of pumping main 42.2 km

Land requirement of STP 18.0 acres

Project Cost Rs 209.4 crore


As the implementation has already started in 2010, around 72.6 crore have been spent so

far. Thus, the remaining cost of Rs. 136.8 crore is still to be incurred. Considering the

progress of work, it is assumed that the remaining work of Phase 1 shall get completed by

2017.

7.3.3 Under Ground Sewerage System (UGSS): Phase 2

The ongoing UGSS- Phase 1 will cover the erstwhile five Municipalities having a

population of 4,11,943 out of the total ECMC population of 4,98,121 in 2011. Though the

population of the remaining unserved area is 86,178 having only 17.3 % share of ECMC

population, the same area shall have 2,74,154 population by 2042. Hence, the second

phase of UGSS covering the remaining area of 55.86 sq.km. is proposed to be taken up

during medium term. The details of projected population for areas under Phase 1 and

Phase 2 are presented below.

An integrated system has to de designed and implemented for an additional population of

2,74,154 (balance area population by 2042). As per rough estimate the system will cost Rs

150.6 crore. The brief about the proposed Phase 2 of UGSS is presented in the table below.

Table: Proposed Phase 2 of UGSS

Descritpion Area & Parameters

Coverage BP Agraharam, Suriampalayam, Gangapuram,

Ellapalyam, Vilarasampatti, Thindal, Muthampalayam

Total length of sewer Network 400 km

Extent (Area Coverage) 55.86 sqkm.


STP Capacity augmentation 45 MLD

Implementation Stage Medium term



7.3.4 Community and Public Toilets

Ensuring coverage of all households and other establishment under this is key to achieve

the objective while latrine coverage either individual or community based is equally

important to achieve the goal of open defecation free city. Hence, it is necessary to

increase the number of toilets (individual/community/public) to have access to safe facility

especially for the urban poor and floating population.

Community toilets for existing demand: About 65% of the total population have

individual safe disposal facilities, while 20% out of the urban poor population of around

75,776 have individual facilities. The remaining population of around 175000 people

depend either on community toilets / public toilets / unsafe toilets or go for open

defecation. Out of this population of 175000, around 60000 reside in slums and remaining

115000 are from areas other than slums.

ECMC has initiated construction of 47 toilet blocks in addition to the existing 171 no’s.

Taking average seats as 4 in each community block, the facility would cater to around

52320 people a day as shown in table below.

Table: Common Toilet coverage in Erode

Type of toilet Number of toilets Estimated users/day

Community toilets

(existing)

171 171*4 seats*60 users = 41,040

Community toilets

(under construction)

47 47*4 seats *60 users = 11,280

Estimated users/day 52,320

The urban poor population is around 75,776 out of which 20% have individual facilities

(15,000) and around 41,000 depend on the available community toilets. Futher, 47 new

toilet blocks are being constructed which shall serve an additional population of about

11000. Therefore there is a need for providing community toilets for 8000 slum population

which will require 135 additional seats.

A programme to motivate people to develop individual toilets is proposed to increase the

access of individual toilets in area other than slums. It is roughly estimated that around half

of the people not having individual facility at present, i.e. 57,500 people (50% of 115000),

would develop individual toilets at household level by the end of short term period.

Therefore, there is a need to provide community toilet facilities for the remaining

population of 57,500 for which 965 seats need to be provided (as per suggested norm of 1

seat per 60 population).

Hence, to meet the current requirement of community toilets, it is estimated that 1100

additional seats (135 seats for slum population plus 965 seats for population in areas other

than slums) needs to be provided in short term. Out of the existing 171 blocks of

community toilets, restoration works of 60 existing blocks is proposed to be carried out

during the short term

Community toilets for future demand: Around 56,400 population is estimated to be



added within ECMC by 2017 out of which it is assumed around 20% (i.e.11280) would

depend on community toilet facilities. Hence, 188 seats needs to be provided additionally

to support the requirements of population in year 2017.

It is aimed to reduce down the overall dependency on community toilet, by encouraging

the supporting the development of individual toilet facility beyond short-term period.

Thus, the increasing population will not lead to increased demand for community toilet,

and hence any additional provision of community toilets during medium and long term is

not required.

Public toilets: Apart from the resident population, adequate public toilet facilities are

required for the floating population of the town. Assuming floating population to be

around 5% of the total population, ECMC will witness a floating population of 27800 by

the year 2017. Taking into account the existing facility of 48 public toilet seats,

additional 230 seats (assuming 1 seat serves floating population of 100) needs to be

provided. Similarly, ECMC is to witness around 31,400 and 43,300 floating population

by the year 2024 and 2042 respectively, for which additional 40 and 120 seats shall be

provided during medium term and long term.

Proposed Toilet Blocks and Costing: The estimated cost for providing the above

requirements is summarized in the table below.

Type of toilet Number of

toilet seats

to be

provided

Seats

per

Block

Toilet

Blocks

Estimated

Cost (Rs.

in crore)

Community toilets –

New construction

1100+188 6 215 8.6

Community toilets-

Restoration works

- - 60 1.2

Public

toilets- new

construction

Short 230 8 29 1.5

Medium 40 5 0.3

Long 120 15 0.7

Total 12.3

7.3.5 Septage Collection & Treatment Facility

On commissioning of the UGSS- Phase 1 for erstwhile Municipality areas, the remaining

area and some inaccessible parts of the UGSS- Phase 1 area will still depend on septic

tanks. The estimated septic tanks that may have to be de-silted regularly till the

commissioning of the second phase (till 2022) will be around 40,000 after which the

number will reduce. It is proposed to have four suction units and two separate septage

treatment facility. The estimated cost of the suction units and the treatment units is Rs.7.50

crores.

7.3.6 Capital Investment Plan- Sewerage and Sanitation

The projects proposed in line with the sector goal and strategies, to meet the existing and

future requirements have been identified. All the proposed projects have been



summarized and categorized as short term (2017), medium term (2024), and long term

(2042) projects in the following table.

Table: Capital Projects and Investment Requirements- Sewerage & Sanitation

Sr.

No.


(2017)

Mid Term

(2024)

Long Term

(2042)

1 Sewerage

System

Under Ground

Sewerage System

(UGSS)- Phase 1:

53.65 sq.km. of ECMC

(Remaining works of

Package 1 to 4)

UGSS- Phase 2:

55.86 sq.km. of

ECMC- Sewerage

network of 400 km

length, Pumping

stations, Pumping

mains


2 Treatment STP of 50.55 MLD

capacity

STP of 45 MLD

capacity


3 Community

Toilets

Construction of 215

new blocks (6 seats

each), Restoration of

114 existing blocks

Rs. 10.9 crore

4 Public

Toilets

Construction of 29 new

blocks (8 seats each)

Construction of 5

new blocks (8 seats

each)

Construction of 15

new blocks (8

seats each)


5 Miscellane

ous

Septage treatment

facilities

Rs. 7.5 crore


The short-term projects mainly comprise the remaining work of the ongoing UGSS

Phase 1, while UGSS Phase 2 occupy major share amongst the medium term projects.

The other important component is construction/restoration of community and public

toilets which is spread across short, medium and long term as per the requirements. The

investment required in the short term is Rs. 156.7 crore, while another Rs. 150.9 crore

shall be invested during medium term.

7.4 Solid Waste Management


During the stake holder consultations, the need for upgrading SWM has come up as one of

the priorities and the shared vision is:

"To implement an integrated SWM Programme which is environmentally

acceptable, technologically feasible, economically viable to transform Erode city into

the cleanest city in India."



The strategies and targets for each component of the Waste Management have been

presented in the tables below:

Table: Strategies for Upgrading Solid Waste Management

Component Strategy Target

Segregation

and Storage Segregation (biodegradable,

non-biodegradable)4 and

separate storage at source

Two separate bins will be kept

for Biodegradable (Green

color), non-bio degradable

(white color) generated in all

premises

Cover all premises through a

continued and organized

awareness creation, motivation

and subsequent enforcement

Primary

Collection Door step collection / kerb /

block of segregated and stored

waste

Direct collection from non-

domestic bulk generators

Door step collection of 90% of

the households in inner-city &

60% in other areas, & 70% of

non-domestic sources

Others through kerb / block

collection

Street

Sweeping Cover all roads/streets and

open spaces; and

Cleaning of drains (below 60

cm depth) by the sanitary

workers in the afternoon

Daily coverage of dense

commercial areas

Sweeping on all days including

Sundays in city and, market area

Alternate day sweeping in

medium density and dense

housing area and

Weekly coverage (twice/once) of

other areas

Secondary

Collection Abolition of all open

collection points

Place containers – separate for

organic and inorganic in paved

area with drainage facility

Direct transfer of waste from

primary collection vehicle to

containers

Manned drop off centers for

depositing large fractions of

waste

100% coverage with provision

for 30% additional storage

capacity of containers to prevent

overflow; and

Paving all container stations

Direct

Collection Direct collection of waste from

large hotels and restaurants,

marriage and function halls,

hospitals, construction waste,

slaughter house, etc. by

100% of large hotels, restaurants

hospitals

All major markets

100% coverage of construction

waste and

2 Only Two bin system for segregation of wet and dry waste is recommended at present. Domestic

hazardous waste is expected to be collected in the dry waste bin initially. A separate bin for domestic

hazardous waste can be started at later stage, after the community acclimatizes itself to the concept of

waste segregation.



Component Strategy Target

deploying exclusive vehicles

for the purpose Bi-weekly collection of bulk

waste / garden waste from

domestic area on pre-fixed days

Transportati

on ‘Container Exchange System

of Transport’ that transports

organic and inorganic waste in

dumper bins to compost plant

and landfill site respectively

by using dumper placer

vehicles

100% removal organic waste

daily

Need based removal of inorganic

/ inert waste without allowing

overflow and

Daily collection in transportation

vehicle (covered tipping truck)

of premises under direct

collection system and direct

transportation to disposal site

Treatment Treatment of organic fraction Upgrading the Compost plant

Promoting decentralized

treatment units in outer areas

RDF plant may be established

for compost rejects and high

calorific value fractions

Landfill Engineered landfill for inerts

and compost rejects

Remediation of accumulated

waste;

Scientific Closure of the

Facility; and

Procurement of the new landfill /

treatment facility and developing

the same

Table: Targets for Service Delivery-Solid Waste Management

Components Standard

Norms

Existing Status Short

Term

(2017)

Medium

Term

(2024)

Long

Term

(2042)

Extent of Segregation

of Waste at Source

(% of HH)

100% 20% 80% 100% 100%

Door-to-Door

Collection

100% 75% (Domestic),

20% (Non

Domestic)

100% 100% 100%

Street Sweeping

(as % of total length

of roads)

100% 47% 100% 100% 100%

Extent of Scientific

Disposal

100% 63% 100% 100% 100%

Extent of Cost

Recovery

100% - 52% 45% 100%



Redressal of

Customer Complaints

80% 60% 80% 80%

7.4.2 Identification of Proposed Projects

Collection and Transportation: To upgrade collection and transportation, ECMC has

estimated further requirement of vehicles and equipments for 2013-14 under Integrated

Urban Development Mission, costing around Rs. 2.2 crore. ECMC has decided to phase

out the refuse compactor and go for more nos. of dual loader dumpers and dumper placers.

The proposals for augmenting collection & transportation are for segregated collection and

transportation for which segregated storage at source has to be motivated. The present

container stations will be upgraded to twin container station (or more numbers if required

subject to space availability) with paved yard. Manned drop off centers for the public to

bring and deposit heavy / bulky waste will also be provided. High lift auto tippers will be

provided along with containerized hand carts for primary collection & collection of street

sweepings.

Currently SWM operation in 16 wards is outsourced. More wards may be brought under

this to overcome inadequacy of workers so the city cleansing may not suffer.

By 2017, the requirement will be to collect and transport 234 TPD of waste, which shall

then increase to 301 TPD and 564 TPD by 2024 and 2042 respectively.

Landfill and Plants: The crucial issue in the Current SWM is in the management of

treatment / processing and landfill. Apart from the fact that the operation is in

environmentally sensitive area where stringent environmental mitigation measures have to

be adopted. Considering the vulnerability of this area ECMC has proposed shifting of

activities to another site and the CDP proposals are for establishing an environmentally

acceptable SWM.

ECMC proposes to procure 50 acre of land to develop treatment plant and landfill. Apart

from composting, ECMC has proposed 10 TPD biomethanation mainly for

market/slaughter waste.

By 2017, it will require to treat 131 TPD of organic fraction, process 33 tonnes of compost

rejects and 35 tonnes combustible fraction for RDF, landfill 35 tpd. By 2042, the

requirements will increase as mentioned below:

315 tpd of compost plant

80 tpd of Biomethnation with power production

85 tpd of RDF production

85 tpd of landfill

It is proposed to build the new facilities at the 50 acre site under procurement. Till then the

present facilities will continue, but the existing dumps will be closed scientifically and

interim landfill will be done at the existing site. The power generated from biomethanation

will be utilized in the treatment plant and compost will be marketed as organic manure.



It is proposed to develop RDF plant through PPP mode. Refuse-Derived Fuel is an

alternative fuel which is obtained from Municipal solid waste. It is a Renewable form of

energy and can be employed in boilers instead of coal. By replacing coal with RDF,

problems like ash-handling, flue gas emission and air pollution which are associated with

fossil fuels, can be eliminated. RDF offer advantages compared to coal, i.e. lesser sulphur

content leading to lesser pollution, lesser price, high calorific value. The amount of RDF

generation is around 1/3rd of the waste processed in RDF plant. As RDF plants have

potential to earn revenues through sale of RDF, it shall attract private investment.

Simultaneously, the alternative of developing decentralized treatment units (Vermi

composting, bio-gas units) shall be adopted to reduce the future pressure on the centralized

facilities as well as transportation expenditure. Since the extended areas are not densely

populated, setting up such units without affecting the neighborhood population is possible.

The development and operation of such units shall be taken up through PPP mode.

Capacity Building: The implementation of the SWM plan recommended in this section

requires professionals and technical experts to plan, manage, construct and operate

engineered landfill, treatment plants, specialized vehicles and equipments. Considering the

above aspects and also the institutional structure recommended by CPHEEO in its manual

on Solid Waste Management, the following measures for institutional strengthening and

capacity building are recommended.

Formation of a separate SWM Department by inducting Environmental /

Public Health Engineers;

Clear definition of duties and responsibilities;

Decentralized administration and management; and

Training and capacity building programs for the staff

7.4.3 Capital Investment Plan- Solid Waste Management

The costing is done for the collection & transportation, treatment, landfill development,

landfill remediation, for the new site as per MoEF notification 2006. While the landfill site

development works are for next 30 years, the capacities of treatment / processing plants are

worked out for short, medium and long term based on the estimated requirements. The

major component is the development of new land, setting up compost / RDF plant and

landfill, while the second major item is landfill remediation of the existing dumps and

providing interim landfill. Both these at the existing site is intended to mitigate

contamination of water which is one of the crucial issues in Erode. Summary of costs is

presented in the table below. The total cost estimated for the short and medium term is Rs.

60.5 crore and Rs. 11.2 crore respectively, while it is Rs. 27.4 crore for long term.

Table: Capital Projects and Investment Requirements- Solid Waste Management

Sr.

No.


(2017)

Mid Term

(2024)

Long Term

(2042)

1 Collection &

Transportation

Vehicles

Containerized carts and auto high lift tippers; Paving container

stations, procurement of containers; Dumper placers & tippers,

inspection vehicles - vehicle paring & service equipments


2 Improvement Landfill including



works at

Venidpalayam

Landfill Site

green belt, leachate

treatment plant;

Landfill

remediation

Rs. 12.0 crore

3 Civil Works &

Plants at New

Landfill Site

Land development

(for long term);

Landfill –

formation, liners,

leachate collection

system, cut-off

drains, roads, LTP

(for long term);

Workers’

accommodation

facility

Workers’

accommodation

facility

Rs. 25 Crores Rs. 0.5 Crores Rs. 0.5 Crores

4 Bio-

methanation

Plant

10 TPD (already

proposed) + 20

TPD capacity

20 TPD capacity 40 TPD capacity

Rs. 4.8 Crores Rs. 3.2 Crores Rs. 6.4 Crores

5 Compost Plant

(PPP)

110 TPD capacity 40 TPD capacity 130 TPD capacity

Rs. 6.6 Crores Rs. 2.4 Crores Rs. 7.8 Crores

6 RDF plant-

(PPP)

30 TPD capacity 20 TPD capacity 40 TPD capacity

2.1 Crores 1.4 Crores 2.8 Crores

7 Decentralised

Vermi-

Composting

Plants (PPP)

Up to capacity of

10 TPD

Up to capacity of

10 TPD

Up to capacity of

20 TPD



7.5 Roads and Transportation Projects

7.5.1 Strategies

Improvement of the road network and transportation facilities of ECMC shall be planned

out based on following strategies.

Improve road surface and undertake regular maintenance

Develop new roads or improve earthen roads to BT roads in the expanded

areas

Develop new link roads within the developed areas such that it critically

improves the mobility and efficiency of road network

Traffic management through one way systems and one side parking,

especially in dense areas

Improvement of geometrics of major traffic junctions

Identify and prioritize major junctions for interventions like Flyovers, Sub-

ways, Foot Over-bridge

Adequate parking development (incentive mechanism for PPP model for

redevelopment of municipal markets into an integrated market cum parkin

complex shall be worked out)



Improving regional connectivity while reducing the traffic in internal areas

and reducing the burden over existing inter-city transport terminus (A new

Bus Terminus at major junction in the outer areas to expand the overall

capacity and to facilitate the newer developing areas)

Improve connectivity to the areas on the other side of River Cauvery

With the growth of population and corresponding increase in vehicular population, Erode

is facing the heat of severe traffic and transportation problems. Based on the assessment of

present status of road network, identified issues and the requirements to facilitate the

envisaged growth of the city, several interventions need to be carried out. These

interventions include development of new roads, upgrading surface of existing roads,

resurfacing and repairs of damaged roads. Apart from expansion and renewal of road

network, junction improvement projects, flyovers, sub-ways, etc. has to be developed at

critical junctions based on prioritization. The major radial roads shall be developed by

providing foot-paths and/or on-street parking lanes, for which many of such roads shall be

widened.

7.5.2 Development of New Roads

The notified Master Plan proposes three majorly important new roads. One of which is

the Ring Road, which is to be dealt by Highways Department, Govt. of Tamilnadu, and

hence the same is out of the purview of ECMC. While the other two proposed roads,

shall be developed by ECMC on priority basis. Apart from the roads proposed under

Master Plan, one more proposal about developing an important link road is identified in

consultation with the officials of ECMC.

1. Link road connecting Brough Road to EMM Samy Road- 60’ wide

and about 1.5 km in length (as proposed in the notified Master Plan)

2. Link road passing through fringe areas of Periyasemur- 50’ wide and

about 2.1 km in length (as proposed in the notified Master Plan)

3. Link road running parallel to Perumpallam Odai - 50’ wide and about

2.5 km in length (as identified in consultation with the officials of

ECMC)

As discussed earlier, the normative standard suggests that the surface area of roads shall

be around 17 to 20% of total urban area. The area of present road network of ECMC has

been estimated by assuming different width for different level of roads, which comes to

be around 15.51 sq.km. Thus, the surface area of roads within ECMC occupies around

14.16% share of the total area of ECMC.

It is proposed to develop around 4.20 sq.km. of new roads in the medium term, so that

the area under roads increases to 18% of the total ECMC area. The required area can be

attained by approximate 280 km length of new roads, assuming average width to be 15

m. Out of this, around 100 km length of new roads is to be taken up as part of the short-

term projects while the remaining 180 km shall be developed during the medium term.

The total cost of developing new roads up to the medium term is Rs. 216.9 crores.

Long Term Requirement: Another 150 kms of roads length (assuming average of

width of 15m) is proposed to be developed over the long term to increase the area under



roads to 20% of ECMC area. The cost of developing the same is estimated to be Rs.

112.50 crores.

7.5.3 Upgrading of Earthen/WBM Roads to BT Surface Roads

At present there are around 100 km length of roads having earthen surface, while other

10 km length of roads are having WBM surface. It is much needed to upgrade the

conditions of these roads by upgrading its surface. Hence, all these 110 km length of

existing Earthen/WBM roads shall be upgraded to BT surface roads in the next five

years.

7.5.4 Resurfacing of Roads

There is around 587 km of existing BT/CC roads, part of which shall require resurfacing

to maintain and/or upgrade the condition of roads. As around 131 km length of these

roads has already been resurfaced by ECMC in the last 2 years, resurfacing of remaining

456 km length only need to be planned. Out of these 456 km, around 200 km length shall

be resurfaced as part of short-term projects and remaining 256 km length of road shall

be taken up for resurfacing in the medium term. Over the long term (between year 2025

to 2042), the length of roads to be resurfaced is estimated at approx. 500 km.

7.5.5 Bridges

It is important to note that the link road connecting Brough Road to EMM Samy Road

also includes a Bridge across Perumapallam Odai. The bridge is important to increase the

mobility across the Perumalpallam Odai and also to reach the railway station. The

existing low level bridge is in poor condition and unable to accommodate the growing

vehicle population in the town. In addition, the frequent flooding during rainy season

adds to the growing problems.

Apart from this, there are two other bridges to be developed- one at Katta Bomman

Street and other one is a high-level bridge at Kasipalayam Malaikovil.

In order to increase the connectivity across River Cauvery, a bridge is proposed to be

developed during the medium term. The bridge shall cost around Rs. 60 crore which

shall be borne by Highways Department.

7.5.6 Flyovers and/or Junction Improvement

Looking towards the increasing traffic and the resultant congestion problems, it is also

recommended to improve various important junctions. The major junctions,

improvement of which shall play critical role in enhancing the mobility and easing out

traffic movements have been identified based on the field observations and the

discussions held with the officials of Traffic Police and ECMC. The important junctions

identified for improvements are as below:

Panneer Selvam Park

M.G.R. Statue

Bull Fight Junction

Soorampatty Four Roads



Clock Tower Junction

Swasthik Junction

Moolapalayam

Solar Junction

Villarasampatti Four Roads

Perundurai Road at Thindal

Sathy Road and Bhavani Road

It is proposed to build three flyovers - one at PS Park Junction, second at MGR Statue

Junction and third at Swastik Junction - on priority basis, while the remaining of above-

mentioned junctions shall be improved by working out road geometries and accordingly

developing medians, islands, cross-ways, traffic signals, signage, etc. For these, a detail

traffic survey, total-station survey, and technical feasibility study shall be conducted for

all these junctions to formulate detailed design proposals. The CIP incorporates Junction

Improvement of all these junctions in the short-term duration.

Apart from the 3 flyovers proposed in short term, another two flyovers are proposed each

in medium and long term. It is suggested to develop flyovers at Bull Fight Junction and

intersection of Ring Road with Perundurai Road at Thindal, during the medium term.

The 2 flyovers to be developed during long term are suggested at intersection of Ring

Road with 2 important radial roads, i.e. Sathy Road and Chennimalai Road. The cost of

these 2 flyovers is assumed to be borne by Highways Department, Govt. of Tamil Nadu.

7.5.7 Pedestrian Sub-ways and Foot Over-Bridges

Erode has gradually, developed into a hub of commercial activities. The vehicular traffic

has grown in manifolds in the last couples of years. Growth in pedestrian traffic is also

necessitating crossing of the major arterial roads of city which has been a concern from

the point of view of safety at certain locations. As part of overall Traffic &

Transportation Planning measures and prioritizing pedestrian safety, ECMC has to

undertake development of Pedestrian Sub-ways and/or Foot Over Bridge (FOB) at

various critical locations. It is proposed to construct two pedestrian sub-ways- one at PS

Park and the other at GH Intersection, as part of the short-term projects.

Although it is also envisaged that ECMC shall undertake “Development of Modern Foot

Over Bridge (FOBS) at various identified locations on PPP Format on “Design, Build,

Finance, Operate and Transfer” (the "DBFOT") basis. The project would be completely

financed by the developer. In consideration the developer shall have access to revenue

accruing advertisement rights at designated spaces. Around 6 such foot over bridges shall

be developed by medium term, the locations for which shall be finalized by detail need

assessment comparing locations like market areas, junctions, major schools, public

buildings, transport terminus.

The Modern Foot Over Bridges shall have Staircase, Lifts or Ramps based on the site

conditions and Sky walk across the road. The overarching goal of the initiative is to

improve the pedestrian safety by providing safe and eased access to the pedestrians

crossing the arterial and sub arterial roads there by facilitating smooth motorized traffic

flow.

7.5.8 Foot Paths



Development of foot-paths along all major roads is very much required for safety of

pedestrians and decongesting and smoothing of traffic flow. It is suggested that, all the

highways within ECMC shall have footpaths along it, which is to be developed by

Highways Department, Govt. of Tamil Nadu. The total length of all roads, except

highways, in ECMC shall reach around 800, 980 and 1130 km by short, medium and

long term respectively. It is proposed that ECMC, in short term, shall develop foot-paths

along 10% of roads prevailing by that time. The ratio of roads having footpaths shall be

increased to 25% and 40% of the prevailing roads by medium and long term

respectively. Hence, ECMC shall undertake development of foot-paths along 80 km, 165

km and 165 km during short, medium and long term respectively.

7.5.9 Parking Lots / Multi-level Parking Complex

There is immense and urgent need for providing dedicated off-street parking spaces in

Erode. Parking facility is proposed to be developed by redevelopment of two of the

Municipal Assets i.e. Gani Market Complex and Nethaji Market, as both are located in

the central area of the city which is facing acute parking problems. It is proposed that

both the properties shall be developed on a public private partnership mode wherein the

private partner shall be allowed to build commercial space equal to the constructed

parking area.

The key features of PPP arrangement shall be as following:

ULB shall contribute land

Private partner shall be responsible for Development of the site which

shall include commercial space and parking space in the ration of 1:1

Revenue from leasing/rent of commercial space shall be shared between

the ULB and private partner as per the feasibility report

Revenue from parking fees shall be shared between the ULB and private

partner as per the feasibility report

Nethaji Market: It is proposed to develop it under the PPP mode wherein 5000 sqmts. of

the plot shall be developed into a commercial cum parking complex. At an FSI of 4, the

total built-up area achievable is 20,000 sqmts. It is assumed that parking space shall

occupy a built-up area of 12000 sqmts and commercial space will occupy the remaining

8000 sqmts. of built space. Paid parking facility of around 500 car units shall be made

available for public use at this complex.

The cost estimated the project and the project management cost to be incurred by ECMC

have been presented as part of Commercial and Industrial Infrastructure.

7.5.10 Modern Bus Terminal

Looking towards the traffic entering the core, there is an urgent need for a new Integrated

Bus Terminal in the extended areas of Erode Corporation as this will ease the traffic. The

site shall ideally be identified near major radial road or proposed Ring Road such that it

will enhance greater connectivity with the surrounding districts of the state.

ECMC shall opt for PPP model for developing the new bus terminal. The Corporation

shall identify the land parcel, which shall be its equity in the joint venture. The project



shall consider development of certain commercial spaces along with an integrated bus

terminal. ECMC shall invite private players to build the project, against which the

private player get the rights to lease out the commercial spaces. ECMC shall also seek

specific share in the revenues earned by leasing out the commercial spaces. A detail

study for identification of land parcel and structuring of PPP model has to be carried out

as part of the Integrated Mobility Plan.

7.5.11 Comprehensive Mobility Plan Preparation

With the anticipated growth in economic activity in the city, there will be a corresponding

rise in purchasing power amongst its citizens. This will trigger a massive increase in

vehicle ownership patterns in the city. This might become an issue due to related problems

like safety, congestion, pollution, etc. The city needs to prepare itself for these problems in

advance. The ECMC has initiated the process of preparing Comprehensive Mobility Plan ,

to improve the transportation system within the city limits, and has appointed CDM Smith

as technical consultant. Solutions may lie in widening the road network in congested areas,

introducing better parking norms and facilities, strictly enforcing encroachment norms,

practicing scientific traffic management and instituting an effective public transportation

system.

The Comprehensive Mobility Plan shall be prepared based on detail surveys and studies

related to traffic volumes, origin-destination pattern, trip details, public transport, etc. The

study shall also integrate the overall Master Plan, and various other proposals in and

around ECMC, while preparing the Comprehensive Mobility Plan. The CMP shall provide

a sound and strong base for preparing detailed proposals for the various projects identified

hereinabove like New Roads, Junction Improvement, Foot-paths, etc. It shall also

formulate strategies and proposals regarding routes and facilities of public transportation,

parking facilities, and traffic management.

7.5.12 Capital Investment Plan- Roads and Transportation

Table: Capital Projects and Investment Requirements- Roads and Transportation

Sr.

No.


(2017)

Mid Term

(2024)

Long Term

(2042)

1 Road

Upgradation

Upgrading existing

earthern roads to BT

roads- 100 km length,

Upgrading existing

WBM roads to BT

roads- 10 km length

Rs. 48.5 crore

2 New Roads 106 km length (incl. 6

km roads as earmarked

in Master Plan)

180 km length 150 km length

Rs. 127.8 crore Rs. 216.0 crore Rs. 180 crore

3 Resurfacing

of Roads

200 km length of roads 256 km length of

roads

500 km length

of roads


4 Bridges 3 bridges: Perumpallam Bridge across



Odai, Katta Bomman

Street, Kasipalayam

Malaikovil

River Cauvery

(other)


5 Fly-overs 3 fly-overs: MGR

junction, PS Park

junction, Swastik

junction

2 fly-overs: Bull

Fight junction,

Junction of Ring

Road with

Perundurai Road

at Thindal

2 fly-overs:

Junction of Ring

Road with Sathy

Road, Bhavani

Road


6 Junction

Improvement

9 important junctions

Rs. 12.0 crore

7 Footpaths Footpaths along 80 km

road length

Footpaths along

165 km road

length

Footpaths along

165 km road

length

Rs. 48.0 crore Rs. 99 crore Rs. 99 crore

8 Pedestrian

Subway/ Foot

Over Bridge

2 pedestrian subways:

GH Intersection and PS

Park, Foot-over-bridges:

2 nos. (to be developed

by PPP)

Foot-over-

bridges: 4 nos.

(to be developed

by PPP)

Rs. 25.0 crore (24 + 1

PPP)

Rs. 2.0 crore PPP

9 Road Signage Rs. 3.0 crore


7.6 Street Lighting

It is proposed to upgrade the street lighting network in the city by implementing advanced

technology and energy efficient measures to reduce its energy consumption improve

compliance with commonly accepted standards for street lighting service quality and

improve operation and maintenance practices.

The Project comprises the enhancement of the existing street lighting infrastructure,

including installation of cost-effective modern lamp technology compliant with applicable

standards, installation of feeder panels for automation and metering, and O&M through

PPP approach. The selected Energy Service Company (ESCO) will operate and maintain

the street lighting system in accordance with the contract entered into with ECMC.

An Energy Service Company (ESCO) identifies and evaluates energy saving

opportunities in industrial units, commercial complexes, hospitals, municipalities,

buildings and utilities by using energy audit tools and recommends a package of

improvements that can pay for itself through the resultant savings. ESCOs provide

their clients with comprehensive services - encompassing audits for energy saving

performance, design & implementation of conservation measures, maintenance,

operation and management of the introduced facilities and procurement of project

funds. ESCOs conduct retrofitting for energy conservation without damaging the

environment. The ESCO will guarantee the savings that would meet or exceed the



annual payments to cover up the entire project costs usually a period of 5 to 10

years. The Contract should be based on the shared savings model commonly used

in street lighting projects around India.

The salient features of performance contracting for energy savings through ESCO

based business model are as under:

Nil investment by Corporation.

ESCO to identify Energy Efficient Measures (EEMs) to replace/modify

existing in-efficient systems.

ESCO supplies, installs and maintains the Energy Efficient Measures

(EEMs) during the contract period.

Contract period could be 3-5 years or as mutually agreed upon.

Energy saving is shared between ESCO and customer as per agreed

terms.

Total project cost is funded by ESCO.

The O & M expenses will be met by the Corporation.

Guarantee Energy savings and recover its investment including interest &

other costs out of generated energy savings

Proposal – ECMC shall have around 910 km of road length by 2017 as proposed in this

CDP. Considering this road length, the total street lights required would be approximately

30,300 units at an average spacing of 30 m between two adjacent light poles. Of this, there

are already about 18,000 street lights functional within ECMC limits, while 12,300 need to

be added by 2017. Over the medium term, the road length is proposed to increase by 180

km; therefore additional street lights required to be added during the medium term is 5250.

Another 3750 street lights would be required to be added for the 150 kms length of road

proposed to be developed over the long term i.e. from year 2025 to 2042.

In tune with the strategy to adopt energy saving measures, ECMC has proposed to

implement Energy Saving measures for street light through PPP mode including carrying

out investment grade audit by ESCO, fixing of LED fittings instead of tube lights, fixing

energy savers, street light controllers, individual and central monitoring devices. The

estimated cost of the said work is around Rs. 18.9 crore. Part of the work, having cost

around Rs. 4 crore has been taken up for the year 2013-14. As the project is to be

implemented through PPP mode, ECMC shall incur the project management expenses

only.

Table: Capital Projects and Investment Requirements- Street Lighting

Sr.

No.


(2017)

Mid Term

(2024)

Long Term

(2042)

1 Energy Audit

Measures for

existing street

lights

Rs. 18.9 crore (PPP) +

Rs. 0.9 crore (PMC)

2 New Street

Lights

12,300 nos. 5,250 nos. 3,750 nos.





7.7 Storm Water Drains

The coverage of pucca storm water drains needed to be increased. The kutcha drains

spanning over a length of 340 kms is proposed to be converted to pucca drains over the

short term. The 210 km length of open pucca drains is proposed to be covered in the short

term. Storm water drains are absolutely absent along 146 km length of existing road

network, therefore, it is proposed to provide covered pucca drains along this length of 146

kms. Further, storm water drains are also proposed to be provided along the 106 km length

of proposed roads to be developed over the short term. The 180 kms length of new roads

proposed to be developed in the medium term (i.e. from 2018 to 2024) shall be provided

with pucca storm water drains. Storm water drains are also proposed to be constructed over

the 150 km length of roads to be developed as a long term project.

Table: Capital Projects and Investment Requirements- Storm Water Drains

Sr.

No.


(2017)

Mid Term

(2024)

Long Term

(2042)

1 Upgrading

existing

drains

Converting Kachcha to

Pucca drains- 340 km,

Covering existing Pucca

drains- 210 km

Rs. 48.8 crore

2 Constructing

New Drains

246 km 180 km 150 km



7.8 Basic Services for Urban poor

The basic services including water supply, sewerage, storm water drains, roads, street

lights needs to be augmented in the slum areas. Housing provision is the responsibility of

the TNSCB and it shall be covered under the RAY scheme. The TNSCB survey of Slums

for RAY identified 9815 households in all slum settlements in ECMC. The cost of

providing housing units for the mentioned nos. of slum households is an inadmissible

component of the Capital Investment Plan.

The estimated cost of augmentation of basic services at slum areas is estimated as Rs. 30

crores.

Table: Capital Projects and Investment Requirements- Storm Water Drains

Sr.

No.


(2017)

Mid Term

(2024)

Long Term

(2042)

1 Infrastructure

Facilities


2 Housing Units

for Slum-

dwellers

3435 no. of houses

(to be provided under

RAY)

6380 no. of houses

(to be provided

under RAY)


Total Rs. 97.4 crore Rs. 168.1 crore

7.9 Urban Environment



For retaining the healthy status of urban environment, several planning and conservation

initiatives need to be taken:

Sadayampalayam tank, Muthampalayam and Kannirouthar Kulam are the major water

bodies within the Corporation, maintained by the PWD. The water bodies are polluted by

the sewage and sullage disposal as well as the untreated waste disposed from the

industries. The untreated waste water should be treated and disposed into this water

bodies as the water is used for agriculture purposes in the wayside villages. Efforts shall

be directed at enforcing appropriate water pollution - related laws, ordinances,

regulations, and corresponding enforcement responsibilities and procedures at the local

level. Strengthening and sustained maintenance of these water bodies would aid in the

improvement of the ground water quantity and quality of the town.

Urban Environment: To ensure clean, green and safe living environment for all

citizens of ECMC area while ensuring sustainable development’

Measures to control the air, water and noise pollution

Check the pollution at source and at affected area

Enforce strict regulations on the industrial activities that result in water and air

pollution

Treatment of effluents from industries and sewage system network before

discharging it into the river

Promotion of activities related to plantation & increase in green cover

The projects to be taken up in short term are Developement of Perumpallam Odai, De-

silting of the other 2 important water bodies i.e. Sadayampalayam tank, Muthampalayam

and Kannirouthar Kulam. The DPR for development of Perumpallam Odai is already

been prepared, as per which the project cost around Rs. 70 crore and shall be developed

as part of National River Action Plan (NRAP).

ECMC is looking to adopt renewable energy resources by installing wind energy systems

at the ECMC headquarter. This is to be a pilot project during the short term, after which

several other public buildings may be identified to take up similar initiatives.

Table: Capital Projects and Investment Requirements- Urban Environment

Sr.

No.


(2017)

Mid Term

(2024)

Long Term

(2042)

1 De-silting and

Development of

Lakes

3 lakes:

Sadayampalayam

tank, Kannirouthar

kulam,

Muthampalayam

3 lakes:

Sadayampalayam

tank, Kannirouthar

kulam,

Muthampalayam

Rs. 25 crore Rs. 10 crore

2 Development of

Perumpallam

Odai

De-silting,

Retaining Wall,

Pumping main, etc.

(NRAP)

Rs. 70.0 crore



3 Wind Energy

System

3 nos.- total 750

KW

Rs. 14.0 crore

4 Solar Power

Generation

through

installations of

PV panels

above

Government/

Municipal

Buildings

1 MW power

generation by PPP

3 MW power

generation by

PPP

5 MW power

generation by PPP

Rs. 8 Crores (EPC

cost) plus

Rs.2 crores (O&M

cost for concession

period of 25 years)

Rs. 24 Crores

(EPC cost) plus

Rs.6 crores

(O&M cost for

concession

period of 25

years)

Rs. 40 Crores (EPC

cost) plus

Rs.10 crores (O&M

cost for concession

period of 25 years)

Total Rs. 119 crore Rs. 30 crore Rs. 60 crore

7.10 Green Cover and Social Infrastructure

The green cover generally comprises three categories/uses viz.

1. Forest cover

2. Trees outside forest

3. Public parks, gardens and open spaces

The National Forest Policy has mandated that 33% of the land area should be under

forest cover. This is however different in the different States because of the variations

noticed in levels of urbanization and industrial growth. However in the present scenario

it is increasingly important that every State takes efforts to increase the green cover.

Besides an increase in forest cover, encouraging tree cultivation outside forests can result

in increased green cover.

In order to improve and increase green cover and social amenities, following strategies

have been adopted.



The areas reserved/designated as parks/gardens in the Development Plan shall be

taken up for development on immediate basis

Tree plantation shall be provided/densified along the important roads such as

Brough Road, Sethy Road, Bhavani Road, Cheenimalai Road, Perundurai Road,

Nethaji Road, Mettur Road, Gandhiji Road

Mandatory tree plantation shall be introduced for large private developments

through building regulations

Improve infrastructure of existing facilities and add adequate number of primary

and secondary schools

Increase awareness of citizens towards literacy

Development of world class facilities in existing hospitals and promote setting up

of new hospitals

Healthcare Sector private players may be invited to set up a specialty hospital in

the city on pre-defined user charges

Development of parks and playfields in the extended areas

Development of new fire station in Thindal near the Ring road.

The cost to be incurred for health and education facilities is an inadmissible component

of the CIP, while the remaining part of social amenities shall cost around Rs. 6.8 crore,

Rs. 5 crore and Rs. 3 crore during short, medium and long term respectively.

Table: Capital Projects and Investment Requirements- Social Infrastructure

Sr.

No.


(2017)

Mid Term

(2024)

Long Term

(2042)

1 Health Facilities Rs. 74.0 crore Rs. 38.0 crore Rs. 120.0 crore

2 Education

Facilities


3 Other facilities Night shelter at

VOC Park

Construction

/Restoration of

community

buildings

Restoration of

community

buildings


4 Parks &

Playgrounds

(includes space

allocation for

vendors)


5 Fire Station at

Thindal

Rs. 3.50 Crores

(excl. Land cost)




7.11 Heritage and Tourism

“To protect and conserve the ancient heritage structures with religious importance &

promoting tourism activities within city”. The city has several ancient structures mainly

religious which are more than 1,000 years old and hold significant historical importance.

In order to achieve the sector goal following strategies should be adopted:

Identification & documentation of heritage structures and preparation of

conservation / restoration plan for these historical important structures

Programs to promote heritage walk within the city

Expansion of the City Museum

Development of Ramanujan Museum

The main components of the proposed projects are Tourism Plan and Promotion

Programs, City level infrastructure and Site level facilities & interventions. The

investment proposed for short, medium and long term is around Rs.6.0 crore, Rs. 2.5

crore and Rs. 2.5 crore respectively.

Table: Capital Projects and Investment Requirements- Heritage and Tourism

Sr.

No.


(2017)

Mid Term

(2024)

Long Term

(2042)

1 Tourism Plan and

Programs

Conservation/Restorat

ion Plan, Tourism

promotion programs

Tourism

promotion

programs

Tourism

promotion

programs


2 City level Tourist

Facilities &

Infrastructure


3 Site Level

Facilities &

Infrastructure

At 3 major temples, 2

museums

At 2 major

temples

Restoration

works



7.12 Urban Governance & Capacity Building

The creation of facilities alone will not be enough to effectively improve the quality of

life. Governance and citizens play a very crucial role in sustaining the effect of all

interventions and strategies. Hence, projects to increase the efficiency and transparency

of governing body through E-governce are very important. The other projects to be taken

up are capacity building and/or awareness programs for the general public, for municipal

staff, for children, for urban poor, etc. Such programs for municipal staff shall inculcate

skills, technical knowhow amongst them leading to increase in efficiency, capabilities

and improved output at the assigned tasks/projects. Apart from human resources, ECMC

shall also adopt new technologies for data base management and updation. Preparation of

maps and data base on GIS or such other advanced platform is proposed to be taken up

during short term.

The implementation of the SWM plan recommended in this section requires professionals



and technical experts to plan, manage, construct and operate engineered landfill, treatment

plants, specialized vehicles and equipments. Considering the above aspects and also the

institutional structure recommended by CPHEEO in its manual on Solid Waste

Management, the following measures for institutional strengthening and capacity building

are recommended.

Formation of a separate SWM Department by inducting Environmental /

Public Health Engineers;

Clear definition of duties and responsibilities;

Decentralized administration and management; and

Training and capacity building programs for the staff

Moreover, there shall be several studies conducted for framing various plans and

policies. Preparation of an Integrated Mobility Plan, Environmental Impact Assessment

and Environment Management Plan are such important framework which has to be taken

up during short term.

It will also be necessary to mould Awareness Generation and Behaviour Change.

Campaigns to make community aware of the health and environmental gains of

underground drainage system shall be taken up so that they are motivated to avail

connections. The policies identified by GoTN are:

Generating awareness about sanitation and its linkages with public and

environmental health amongst communities and institutions

Promoting mechanisms to bring about and sustain behavioral changes aimed

at adoption of healthy sanitation practices

A campaign with the help of NGOs, Institutions, Resident Associations, etc. will have to

be organized. There has to be properly developed IEC materials such as posters, banners,

information pamphlets, leaflets and programmes like:

Television programmes

School in development (Child to Child Concept)

Mobile exhibitions

Plays and puppet shows

Road shows

Endorsements by religious and political leader’s booklets

Newspaper advertisements

Radio messages or theme songs

School curriculum development

Thematic displays at exhibitions

Street plays

Drawing competitions

Lectures / Workshops / seminars

Information pamphlets, leaflets

Most of these programmes can be taken up through sponsorship, and hence the proposed

funding is only for preparation of IEC material for initiating the campaign. The costing



for the proposals related to governance, policy studies, capacity building and community

awareness is mentioned in the table below.

Table: Investment Requirements- Governance, Capacity Building & Policy Studies

Sr. Particulars Short Term (2017)

1 E-Governance Rs. 1.0 crore

2 Updation of Data Base and Mapping on GIS Rs. 1.0 crore

3 EIA & Environment Management Plan Rs. 0.6 crore

4 Integrated Mobility Plan Rs. 0.4 crore

5 Community Awareness Programs Rs. 3.0 crore

6 Capacity Building Rs. 3.0 crore

Total Rs. 9.0 crore

7.13 Commercial and Industrial Infrastructure

Based on the visioning exercise (as mentioned earlier in the Chapter-6) and the comments

received during stakeholder’s workshop, following projects have been identified to boost

the economy of the city.

7.13.1 Redevelopment of Gani Market Complex

The existing structure of Gani Market complex is around 30 years old; it is in dilapidated

condition and lacks proper toilet and parking facilities. The municipal corporation is

generating a nominal rental income from the shops that are leased out. This asset being

under sub-optimal use has been taken up for redevelopment by the Municipal Corporation;

as per the DPR, the cost of redevelopment has been estimated at Rs. 32.5 Crores. The

redevelopment shall increase the built up area and also tap higher market rent thereby

optimizing the rental revenue of the corporation.

7.13.2 Development of Nethaji Market Complex

The present daily market is located in the site called “Manikoondu” on the eastern side of

RKV Road. The Daily market is situated in an extent of 6 acres with the total 174 shops

including both retail and whole sale. The market has a number of problems such as the

poor structural condition of the building, the movement space, disposal of waste

materials and lack of facilities for users such as parking, drinking water, toilet facilities

which needs immediate intervention to enhance trade activities. It is proposed to develop

it under the PPP mode wherein 5000 sqmts. of the plot shall be developed into a

commercial cum parking complex. At an FSI of 4, the total built-up area achievable is

20,000 sqmts. It is assumed that parking space shall occupy a built-up area of 12000

sqmts and commercial space will occupy the remaining 8000 sqmts. of built space. Paid

parking facility of around 500 car units shall be made available for public use at this

complex.

7.13.3 Agri-Logistics cum Terminal Market Centre

The concept of an Agri-Logistics cum Terminal Market Centre is essentially a strategically

located multi-modal logistics platform, allowing efficient hinterland operations by

incorporating truck-stop facilities, container cranes and gantries, terminal stacking,



warehousing facilities, high end food processing facilities and other value added services.

It enables supply chain/ logistics to function much efficiently by removing the cargo

bottlenecks in the transit related activities.

Such facilities endeavour to integrate farm production with buyers by (a) offering multiple

choices to farmers for sale of produce such as electronic auctioning (b) facility for direct

sale to exporter, processor and retail chain network under a single roof. In addition, it also

provides storage infrastructure thus offering the choice to trade at a future date to the

participants. It is envisaged to offer a one-stop-solution that provides logistics support

including transport services & cool chain support and facility for storage (including

warehouse, cold storage, ripening chamber, storage shed, etc), facility for cleaning,

grading, sorting, packaging and palletization of produce and extension support & advisory

to farmers. An integrated facility in terms of a modern Terminal Market Centre with

suitable logistics support would address the need of the hour.

To fulfill the vision so as to contribute to all round economic and social development of

India through generation of employment opportunities especially in the rural areas GoI has

initiated major fiscal incentives as set out below.

100% Foreign Direct Investment allowed.

Repatriation of profits is freely permitted.

Most processed food items are exempted from excise duty.

Excise duty exemption for specified cold chain equipments.

Customs duty rates have been substantially reduced on plant &

equipments /raw materials/ intermediates especially for export production.

No license / permission for import of most capital goods.

Income tax rebate allowed (100% of profits for five years and 25% of

profits for the next five years) for new industries in fruits and vegetables.

The estimated project cost is Rs 32.0 Crore. It is proposed to be developed in PPP mode as

it will require specialized facilities and skill. Ministry of Food Processing Industries may

be approached by the city administration or the concerned stakeholders for developing

project in the region.

7.13.4 Floriculture Centre

The areas in around Erode have good water sources and suitable conditions for planting

flower bushes. The total acreage under floriculture in the district is growing at the rate of

10 to 15 per cent every year. Jasmine and Tuberose are grown widely flower bushes.

Floriculture is an important source of income to the local people and it plays a significant

role in the economy of the city. Erode district has huge potential for floriculture but it

lacks adequate marketing support. Therefore there is need to develop a Floriculture

centre where wholesale marketing and trading facilities can be established.

7.13.5 Truck Terminal, Sathy Road

A truck terminal is proposed to be developed at Sathy Road to serve as a logistic

infrastructure to a city which is a major exporter of handlooms and turmeric. A number of

transport agencies are located along the stretch of Sathy road which are seen as potential

users of this facility once developed. ECMC may lease out spaces to these transport



agencies to generate revenues. The truck terminal is proposed to be constructed at a cost of

Rs. 30.8 crores by year 2017.

Table: Capital Projects and Investment Requirements- Commercial and Industrial

Infrastructure

Sr. Particulars Short Term (2017)

1 Gani Market Commercial Complex Rs. 32.5 crore

2 Nethaji Market cum Parking Complex Rs. 24.0 crore (PPP) + 1.2 crore (PMC)

3 Agro Market cum Logistic Terminal Rs. 32.0 crore

4 Floriculture Centre Rs. 1.2 crore

5 Truck Terminal Rs. 30.8 crore

Total Rs. 97.7 crore + 24.0 crore (PPP)

7.14 Investment Requirement

The total investment required for the city is estimated at Rs. 3,200.9 Crores, out of which

the Capital Investment Plan (CIP) that has been considered for the medium term is Rs.

2,123.5 Crores (admissible component) for the CDP. Sector-wise details of the

investments are worked out for the entire period; the following Table represents the

investments over the three phases i.e. Short Term, Mid Term and Long Term. The

scheduling or phasing of the CIP is based on the analysis of fiscal resources for new

investments and O&M, technical capacity for construction and the choice of specific

improvements to be taken up over a plan period of 12 years (2013-14 to 2024-25). The

challenge before the Corporation is therefore to find the resources to fund the massive

infrastructure requirements of the urban sector.

Table: Capital Investment Plan S.No. Sectors Investments (in Rs. Crores)

2017 2024 2042

Short Term Medium Term Long Term Total

A Admissible Components

1 Water Supply 392.6 8.6 38.2 439.4

2 Sewerage & Sanitation 162.0 150.8 0.8 313.6

3 Roads & Transportation 410.9 464.6 524.0 1,399.5

4 Storm Water Drains 186.3 54.0 37.5 277.8

5 Solid Waste Management 51.6 7.2 15.9 74.7

6 Street Lights 29.4 10.5 7.5 47.4

7 Basic Infrastructure Facilities for Notified Slums 15.0 15.0 - 30.0

8 Urban Environment 39.0 - 1.5 40.5

9 Social Infrastructure 6.8 5.0 - 11.8

10 Heritge & Tourism 6.0 2.5 2.5 11.0

11 Urban Governance, Capacity Building & Policy Studies 8.0 - 0.6 8.6

12 Commercial & Industrial Infrastructure 97.7 - - 97.7

Total Investment-Admissible Component (Rs. Crores) 1,405.3 718.2 628.4 2,752.0

B Inadmissible Components

1 Education 92.9 25.7 88.4 207.0

2 Health 74.0 38.0 120.0 232.0

3 Land (Alternative Bus Station) 10.0 - - 10.0

Total Investment-Inadmissible Component (Rs. Crores) 176.9 63.7 208.4 449.0

Total Investment A+B (Rs. Crores) 1,582.2 781.9 836.8 3,200.9

106

7.15 Projects to be implemented by Other Departments

Following projects proposed hereinabove shall be implemented by Government

departments / agencies other than ECMC. These projects shall be undertaken by State

Highways Department, Tamil Nadu Slum Clearance Board under RAY, and TWAD Board

under NRAP, in the respective order.

S.No. Sectors Investments (in Rs. Crores)

2017 2024 2042

Short Term Medium Term Long Term

1 Roads & Transportation (Bridge over River Cauvery) 60

2 Basic Infrastructure Facilities for Notified Slums (Housing-RAY) 82.4 153.1

3 Urban Environment (Lining of Perumpallai Odai) 70

Apart from the above, some other projects that are likely to be initiated by other

departments as per their plan and outlays are listed below.

Table: Projects to be implemented by Other Departments

Projects to be Implemented by Other Departments Department

Four laning of Erode-Karur highway Highway

RuB, Chennimalai Road Railways

RuB, Rangampalayam Road Railways

RuB, Vendipalayam Railways

RoB, Vendipalayam Railways

RoB, Moolgoundampalayam Railways

RoB, Old Karur Road Railways

Erode Mega Cluster Project Industries

In addition to this, the widening/ improvement of any of the State Highways and District

Roads, the development responsibility of which is not with ECMC but with Highway

Department, shall be implemented by the Highway Department.

7.16 Projects to be implemented under PPP Following projects have been identified to be implemented under PPP model. These are

projects of Foot Over Bridges, Energy Saving Installations of Street Lights, and

Commercial cum Parking complexes at Gani Market and Nethaji Market.

S.No. Sectors Investments (in Rs. Crores)

2017 2024 2042

Short Term Medium Term Long Term

1 Roads & Transportation (Foot Over Bridge) 1 2

2 Street Lights (Energy Audit installations) 18.9

3 Commercial & Industrial Infrastructure (Nethaji Market) 24

4 Solar Power Generation (PPP) 10 30 50

5 SWM Compost Plant 6.6 2.4 7.8

6 SWM RDF Plant 2.1 1.4 2.8

7 Decentralized Vermi Composting Plant 0.2 0.2 0.4



Apart from the above projects, the following other projects may also be reviewed and

undertaken under the PPP mode. The major aspects related to each such project such as

estimated cost, incentives to be offered to private partner, possible revenue structure and

the criteria’s / guidelines for development of such facility has also been suggested.

Name of the

project Incentive that

may be offered

by ECMC to

private partner

Possible

Revenue

Structure

(Private:

Public)

Remarks

Mini Club having basic facilities like Swimming Pool & Gymnasium etc.

• Rights over membership fees

50:50 • Concession period for 15 years.

• Land to be arranged by ECMC.

Public Convenience (Maintenance)

• Advertisement rights, rights to collect user fees

100:0 • To be operated by the private agency. User fees

RDF Plants • Sale of RDF 70:30 • RDF plant of 30 TPD capacity shall be developed on immediate basis

• Land to be arranged by ECMC

• Plant to be installed and maintained by private player

Vermi Composting Units

• Construction cost to be borne by ECMC

• Exemption from Property Tax

100:0 • Lands shall be arranged by private player

Integrated Textile Park cum Trade centre

• Quick development approvals

• Rights to charge rental to users, including parking fees

50:50 • Concession period of 30 years

• Land to be arranged by ECMC/State Government



Warehousing units • Quick development approvals

• ECMC to contribute Construction cost

• Municipal tax exemption

• Rights to charge rental to users

75:25 • Land to be brought in by the private player

• ECMC shall review the land parcel proposed by private party and enter into joint venture for developing this facility

Simultaneously, the alternative of developing decentralized treatment units (Vermi

composting, bio-gas units) shall be developed to reduce the future pressure on the

centralized facilities as well as transportation expenditure. Since the extended areas are not

densely populated, setting up such units without affecting the neighborhood population is

possible. The development and operation of such units shall be taken up through PPP

mode.



8 SUSTAINABLE DEVELOPMENT AND CLIMATE CHANGE

Population growth, urbanization, and development employing energy-intensive

technologies have resulted in injecting a heavy load of pollutants into the environment

consequently throwing new challenges posed by climate change.

National Action Plan on Climate Change (NAPCC), 2008 outlines policies aimed at

sustainable growth and dealing with climate change concerns effectively. NAPCC

outlines eight national missions including “The National Mission of Sustainable habitat”.

The Mission promotes energy efficiency as an integral component of urban planning and

urban renewal through three initiatives.

The Energy Conservation Building Code (ECBC), which addresses the design of

new and large commercial buildings to optimize their energy demand, will be

extended in its application and incentives provided for retooling existing building

stock.

Recycling material and Urban Waste Management will be a major component of

ecologically sustainable economic development with a special area of focus will

be the development of technology for producing power from waste. The National

Mission will include a major R&D program, focusing on bio chemical

conversions, waste water use, sewage utilization and recycling options wherever

possible.

Better urban planning and modal shift to public transport. Making long term

transport plans will facilitate the growth of medium and small cities in a way that

ensures efficient and convenient public transport.

Adaptation measures would include water efficient techniques reducing leakages in the

supply system, wastewater recycling, rainwater harvesting, designing of urban storm

water management systems and urban planning measures, etc.

The State Government of Tamil Nadu is in the process of preparing the State Action Plan

for Climate Change in line with the NAPCC. The state aims at working out strategies

and interventions for the subsectors related to Sustainable habitat that have been

identified as housing, drinking water, urban development, health and sanitation, waste

management, transport, energy, pollution and greening of urban spaces.

Following strategies are suggested under various subsectors which need to be adopted by

State/ECMC to address the climate change issues:



Sub-Sectors Strategies

Housing • Energy Conservation Building Code (ECBC)

implementation

• Design considerations to withstand calamities

• New Housing Policy including provisions of Sustainable

Habitat

• Promotion of Alternate Construction materials e.g. fly

ash

Water • Revamping of existing water supply schemes to avoid

loss of water

• Protection of water sources

• Increasing storage capacity

• Reuse of grey water

• Recharge of groundwater

• Control of Sea water intrusion

Urban Development • Mandatory adoption of Energy Conservation Building

Code

• The Building Rules of local body may include the waste

water recycling provisions for large commercial and

industrial developments as mandatory provision before

issue of permission for developments

• Propose to achieve a model split of 70:30 for public and

private transport

• Encourage environment/eco-friendly modes of transport

i.e. cycles, pedestrian friendly traffic

• Enlarge the segments of vehicular population converted

to pollution free fuels, viz. LPG/CNG/Battery

• Strictly enforce the road users to obtain EUC

• Establish an air quality monitoring system which maps

the quality of air across the road network periodically

• Subject every major transport development measure to

safety audit.

• Disaster precaution in building designs

• Regulation of developments in flood prone areas

• Removal of encroachments in disaster / flood prone

areas

Health & Sanitation • New Sanitation Policy

• Monitoring of vector-borne and waterborne diseases

• Identification of indicators for monitoring

• Ensuring complete coverage with sanitation

Waste Management • Setting up of the Material Recovery Facility within the

compost yard.

• Energy generation from methane recovery from SWM

all over Tamil Nadu



• A study shall be carried out to identify the composition

of solid wastes in ECMC to finalise the management

proposal

• Introducing penalty provisions for non segregation of

wastes by the occupier, for littering on streets and

depositing or throwing any solid waste in contravention

of the provision and on the local body for deficiency in

services

• Preparation of SWM action plan

• Conducting Training Program for officials and people

• Providing incentives to private sector to participate in the

reduction, segregation transport, recycling and final

disposal of all types of solid wastes

• Adopt “Polluters Pay” principle, ECMC should collect a

levy from bulk garbage generators such as industries,

hotels, marriage halls, markets and commercial

complexes

• Establishing safe recycling facilities for e-waste and

construction debris

Energy • Compulsory Energy Labelling for Rating for buildings/

residences

• Reduction in cost of solar panels and its promotion

• Replacement of old pumps with energy efficient pump

sets in existing water supply schemes

• Developers may be provided with incentives for

adopting ECBC in residential projects

Transport • Increase the number of bus services in overcrowded

routes and add new services including mini buses in

added areas

• While developing road infrastructure, exclusive lanes to

be created for pedestrian and bi-cycle

• Congestion taxes may be levied on vehicles

• Transportation Fund may be created

• Single window clearance

• Preparation of Comprehensive Mobility plan

• Advertisement revenue for public transport – from bus

shelters

• High Parking revenue to match market demand,

periodical renewal, to contribute to traffic fund, and

discourage private transport

• Low-floor buses to support differently-abled

• Emission based special taxes/penalty

• Providing feeder services to connect the residential areas

• Encouraging car-pooling

• Introducing no-driving day

• Increased subsidy / Reduced excise duty on hybrid

vehicles and battery operated vehicles



• Improvement to all existing roads and maintenance at

regular intervals

• Adoption of alternate / advanced technology including

mixing of plastic to ensure endurance to the roads

Pollution • Improved air quality monitoring through more stations in

urban centres

• Air quality monitoring along roads with heavy vehicular

movement

• Monitoring of groundwater quality

• Ensuring ZLD in industries

• Action Plan to control Pollution

Greening of Urban Spaces • Compulsory OSR for greenery under the Development

Regulations in DTCP

• Stringent compensatory plantation for tree cutting,

including heavy refundable deposit upon evidence of

completing

• Compensatory plantation

• There are several residential projects coming up with the

provisions for greenery around the built-up area. This

may be included in the development regulations while

giving approvals.

• Study to identify suitable plant and tree species for urban

greenery

Policy & Institutional

Level (State Level)

• Sustainable Habitat/Climate Change Policy

• Climate Change cell in each department. Alternatively

Creation of Climate Change Department

• A new website to be developed for Sustainable Habitat/

Climate Change

• Monitoring of all climate change related activities for

physical implementation, benefits, and Introduction of

new technology and improvements to existing practices.

• Capacity Building for line departments and Climate

Change Department



9 REFORM AGENDA AND TECHNICAL ASSISTANCE NEEDS

9.1 Capacity Building & Institutional Framework

The capital expenditure of ECMC has stayed slightly above Rs. 100 Crores since 2008-09,

reaching close to Rs. 125 crores in the year 2010-11. This shows that ECMC is able to

handle implementation of Capital investments in the range of Rs. 125 crores with the

existing technical staff strength of 207 employees (class III and above officers). The

composition of the technical staff of ECMC is shown in the table below:

Table: Composition of Technical Staff of ECMC

Class Sanctioned Staff in Position Vacant

Class-I 4 2 2

Class-II 13 13 0

Class-III 336 192 144

Total 353 207 146

Source: ECMC

It is observed that around 40% of the positions in the technical staff are vacant. Two of the

four Class-I positions are vacant which put the extra responsibility on the existing Class-I

officers. ECMC is short of supporting staff in the Class-III category.

The Capital Investment Plan identified projects to be implemented in the short term. The

total Capital investment of the identified projects is approximately Rs. 1,702.9 crores

which has been phased over the next 12 years.

It is therefore evident that implementation of CIP would require additional manpower with

requisite expertise to cater to the technical inputs and management of the projects to be

implemented in the next 12 years.

To handle this scale of investments, it is recommended that ECMC must first fill all the

vacant positions in Class-I and Class-III category and increase the technical staff positions

across all categories (Class I, II and III) by approximately 1.5 times.

The strength of Engineering Department need to be doubled as this department would be

carrying the maximum load during implementation of the CIP.

ECMC should seek technical assistance while undertaking the following studies as a part

of the CDP:

S. No. Particulars

1 EIA & Environment Management Plan

2 Integrated Mobility Plan

3 Tourism Master Plan / Restoration Plan

4 Asset Management (Condition Assessment Survey)



9.1.1 Suggested Measures for Capacity Building

As per the ‘Report of the Working Group on Capacity Building, Urban Development

Management for the formulation of the Twelfth Five Year Plan (2012 – 2017)’ the states

need to prepare state specific capacity building strategy. Such strategies should map

existing arrangements / requirements / gap analysis / identify specific measures for

strengthening existing facilities and expertise. This framework should incentivize

knowledge and skill development and provide an environment for the use of skills

acquired. While preparing such strategies, the state should focus on smaller ULBs.

Creation of Municipal Cadre professional in nature, covering key areas of modern day

urban governance, capable of meeting ever increasing complexities of city management

will help in improving the performance of the ECMC and attract qualified people to the

services. Such personnel should be available at every level of ECMC. A cadre will

facilitate career opportunities for the persons working in the municipalities and sharing of

experiences across cities.

Specific positions need to be established to address issues related to Urban Poverty and

Housing. In order to mainstream E-governance in ECMC, there is a need to enhance

Professional Capacity in the area of Information Technology as well. The Model

Organizational Structure for ECMC as suggested in the above report of ‘Working Group

on Capacity Building’ has been presented in the Annexure-3 at the end of the report.

Norms for employing officers and staff in various grade of municipalities as suggested in

the above report are based on population of the municipalities, levels of services and

utilities provided, number of assesses, amount of annual transactions, users and

beneficiaries of schemes and programmes and the general workload.

Considering the suggestions as mentioned in the above report of ‘Working Group on

Capacity Building’, the staffing pattern of ECMC should ideally be as given in table

below:



Table: Suggested Norms for Staffing Pattern in ECMC

No. Section / Wing Standards* Sanctioned

by ECMC

Current Staff

in Position in

ECMC

Vacant +

Suggested for

ECMC

Criteria for Staff Selection

A Administration

Commissioner 1 1 1 0 In Cadre of IAS

Addl. Commissioner 1 1 In Cadre of Addl. Director

Secretary 1 1 0 1

Asst. Commissioner 1 3 0 3

PRO / Reporter 1 1 0 1 In Cadre of Div. PRO

System Manager 1 1

Adminstrative Officer 1 1 1

Superintendent 3 3 0 1 for each section

Sr. Asst. 20 2 for each section

Jr. Asst. 41 32 9 3 for each section

Steno Typists 5 2 0 5

Data Entry Operators 3 3 3 0

Driver 27 25 2

Record Assistant 2 0 2

Record Assistant 2 2 0

B Revenue

Dy. Commissioner 1 1

Revenue Officer 2 2 1 for each circle

Asst. Revenue Officer 1 0 1

Revenue Inspector 10 10 1 for 4 Bill Collector

Bill Collector 40 40 1 for 3,000 Assessments

Tax Clerks 26 19 7

C Accounts

Examiner of Accounts 1 1

Accounts Officer 1 2 1 1 The post will be as per income of ULB

Junior Accounts Officer 1 1

Sr. Accountant 1 1 1 under each JAO

Jr. Accountant 1 1 1 under each Sr. Accountant

Asst. Accountant 14 11 3

D Engineering

Chief / City Engineer 1 0 1

Supt. Engineer 1 1

Executive Engineer 2 2 1 1 1 for every 2 lakh population

Dy. Executive Engineer 4 4 4 0 2 for each Exec. Engineer

Asst. Engineer 12 19 8 11 1 for 40,000 population

Technical Assistant 22 7 15

Skilled Assistant (Grade-I) 17 5 12

Skilled Assistant (Grade-II) 57 32 25

Hort. Officer 3 3 2 for S.E. Office

1 for E.E. Office

Work Inspector / Tech. Maistry 12 12 1 for each Asst. Eng.

CAD / GIS Operator 1 1

E Public Health & Sanitation

Chief Medical Officer 1 1 1 0

Medical Officer 8 7 0 1 for each circle

Sanitary Supervisor 4 24 12 12 1 for every 5 Sanitary Inspector

In addition one Sanitary Supervisor for each

landfill site with supporting staff

Sanitary Inspector 12 17 9 8 1 for every 40,000 population

Pharmacist 2 0 2

Health Asst. / Visitor 5 4 1 4 1 for every 1 lakh population

Urban Health Nurse 35 19 16

Field Assistant 7 1 16

Sanitary Maistry 15 15 3 for every 1 lakh population

Pump house operator 3 3 One Pump house operator for each shift of 8

hours

Others 12 12 One person each for Booster Station, Filter

Bed, Mother Tank and STP for each shift of 8

hours.



No. Section / Wing Standards* Sanctioned

by ECMC

Current Staff

in Position in

ECMC

Vacant +

Suggested for

ECMC

Criteria for Staff Selection

F Town Planning

City Planner 1 1 In Cadre of Jt. Director

Transport Planner 1 1 In Cadre of Dy. Director

Dy. City Planner 2 2 In Cadre of Dy. Director

Town Planning Officer 4 4 In Cadre of Asst. Director

Town Planning Supervisor 8 8 1 for every 60,000 population

Building oversees 12 12 1 for every 40,000 population

Exec. Engineer (Planning) 1 1 0

Asst. Exec. Engineer (Planning) 1 1 0

Jr. Engineer (Planning) 1 1 0

Jr. Assistant (Planning) 2 2 0

Support Staff

CAD / GIS Operator 2 2

Tracer 3 3 1 for every 2 lakh population

Town Surveyor 2 2

Chainman 6 6 0

G Legal Wing

Law Officer 1 1

Dist. Attorney 1 1

Legal Asst. 2 2

H Fire Wing

Div. Fire Officer 1 1

Sub. Fire Officer 1 1

I IT Professionals

Sr. Programmer 4 4

Software Developer 3 3

Asst. Programmer 5 5

Jr. Programmer 1 1 0

J Basic Services

Office Assistant 21 18 3

Watchman 17 8 9

Cleaner 10 0 10

Attendant Male / Female 8 7 1

Un-Skilled Worker 70 68 2

Sanitary Worker 843 735 108

Note:

* Suggested as per Working Group on Capacity Building for the 12th Five Year Plan (2012-2017) for

city with population of 5 lakhs

1. The positions vacant and/or suggested for ECMC may be filled up by either upgrading the skills

of the existing staff by providing them training in the respective fields or special position may be

created.

With regard to institutional capacity, the Government of Tamil Nadu should implement

the following actions:

Ensure stability of tenure of Key Officials: Except under extraordinary circumstances,

GoTN should ensure a minimum tenure of at least 2 years for key positions including

Commissioner, Municipal Engineer, Manager, Town Planning Officer and Sanitary

Officer/Municipal Health Officer. Further, transfer of officials should be preceded by a

formal charge handover period to ensure continuity of city level vision, projects and

streamlined service delivery.



Review staffing norms and manpower needs: The office of Commissionerate of

Municipal Administration (CMA) has initiated an independent review of the organisation

requirements and staffing norms in various municipal bodies (including). This is relevant

given the recent developments and the growing service delivery expectations in the urban

sector specifically in urban planning, municipal accounting and systems, e-governance

and modern practices in infrastructure service delivery including potential for public-

private partnerships. Findings and recommendations from these exercise need to be

implemented on priority.

Address critical operational areas through focused training and capacity building

interventions: Three areas stand out in terms of criticality and the need for significant

training interventions which includes:

Engineering and project development – A number of new grant and loan

schemes (both central and state) including the UIDSSMT are available for ULBs to

tap into for meeting their asset creation requirements. However, there seems to be

very little understanding of the scope and potential of using these schemes for

implementing local level projects. GoTN and CMA should conduct periodic

training and awareness programs for senior management personnel including

Commissioners, Managers and Engineering staff. This would enable them work

towards developing projects that can leverage such schemes. Agencies like

TNUIFSL and TUFIDCO should also take the lead in organising such awareness

programs.

Training for timely finalisation and audit of accounts: Though accrual

accounting and computerisation of Financial and Administrative systems have been

implemented, there are significant capacity gaps locally in this revenue and

accounts sections. This needs to be identified and proper training & awareness for

personnel’s needs to be undertaken regularly.

Use of CAD/GIS applications in Town Planning/Engineering: CMA and GoTN

should initiate a state-wide program to train Town planning and engineering staff

on CAD and GIS applications.

ULBs should mandatorily be required to finalize annual accounts and complete audit of

the same within a fixed time period (say a maximum of four months) from end of a

financial year.



9.2 E-Governance

A fully integrated municipal e-governance platform is an effective tool for

Administrative Efficiency, Transparency and Accountability and Citizen Service

Delivery. The infrastructure for e-Governance implementation spans across the domains

of:

1. Physical infrastructure (including networking and computing/server components),

2. Technological infrastructure (including application, hosting and service

architectures),

3. Financial infrastructure (including funding for Capital and Operational expenses

as well as sustainability of continued operations, planning for upgrading of

physical and technological infrastructure)

4. Human Resource infrastructure (including development of both capacity and

capability of human resources required and available)

It is recommended that PPP options be explored from initial stage of the project

preferably at the state level. ECMC should initially go for automation of its functions

such as property tax collection, financial management, work management, building plan

approval etc. For successful implementation of E-Governance the desired capacity

building and institutional changes for ECMC are as listed below:

Training: Training of end-users on the software and where relevant, new

principles (e.g. double entry accounting) and processes (e.g. bottom-up

budgeting)

Implementation Hand-holding: Post training, the implementation hand-holding

component needs to focus on providing technical (both software and processes)

as well as organizational support (e.g. data entry)

Capacity Building: In many cases, there is a need to augment capacity to ensure

better implementation. The reasons are primarily that of insufficient manpower (a

serious issue in the smaller ULBs where there have been caps on recruitment for

several years) and a skill-set mismatch (e.g. most accountants in the smaller

ULBs are not familiar with double-entry accounting – and to cover that gap, fresh

recruitment of qualified accountants is increasingly becoming a necessity).

MoUD in its advisory note of urbanization has suggested for a separate IT cadre

Policy Frameworks: This is typically the most complex part and in some cases,

could involve legal framework changes (e.g. amendments to the Act to switch to

accrual basis of budgeting)



9.3 Asset Management

9.3.1 Concept

Despite significant investments by all orders of government, more needs to be done to

address current and emerging municipal infrastructure needs. Resolving municipal

infrastructure challenges begins with improved asset management. The corporation have

to view this as a prerequisite for a productive discussion about solutions, including

permanent funding for infrastructure. Asset management will be the foundation of the

strategy.

The urban local bodies are consistently challenged with budget constraints, regulatory

requirements and new demands for services. Many cities, towns and counties must cope

with declines in state/central funding and/or tax revenues, while others are forced to

expand their services despite inadequate infrastructure. In this environment of doing more

with less, achieving greater operational efficiency through improved management of assets

and services is imperative.

To manage assets and services effectively, urban local body need a solution that not only

meets the needs of managers and users, but also fits with their overall development

strategy. The ideal solution would provide a unified platform that can track and manage

the full spectrum of municipal assets and service providers; address compliance,

accounting and asset-related challenges across multiple departments. Asset Management

includes the planning, design, construction, operation and maintenance of infrastructure

used to provide services. Asset Management is not new; it has always been a primary

function of local government. Asset management planning will allow needs to be

prioritized over wants. It will help ensure that investments are made at the right time to

minimize future repair and rehabilitation costs and maintain municipal assets.

9.3.2 Asset Management

Asset management planning is the process of making the best possible decisions regarding

the building, operating, maintaining, renewing, replacing and disposing of infrastructure

assets. The objective is to maximize benefits, manage risk, and provide satisfactory levels

of service to the public in a sustainable manner. Asset management requires a thorough

understanding of the characteristics and condition of infrastructure assets, as well as the

service levels expected from them. It also involves setting strategic priorities to optimize

decision making about when and how to proceed with investments. Finally, it requires the

development of a financial plan, which is the most critical step in putting the plan into

action.

Improving the management of municipal infrastructure can bring major benefits by

ensuring that scarce resources are used in the most cost effective manner, thereby

enhancing economic growth, improving a living standards and improving environmental

sustainability. Inefficient use of resources for infrastructure can place a major burden on

public finances, diverting resources that might otherwise go to education, healthcare and

meeting other social objectives.

Many local bodies have traditionally tried to meet infrastructure needs through investment



in infrastructure creation, without recognizing the long-term life-cycle costs associated

with the ongoing operations, maintenance and renewal of infrastructure. This has led to

below-cost tariffs and has undermined the financial position of municipalities leading to

difficulties in financing maintenance and renewal activities.

Strategic Municipal Asset Management is an approach to develop and maintain

municipally owned infrastructure assets to ensure that:

Asset requirements and the management of municipal assets are driven by

defined service levels and performance standards, and are linked to

strategic planning objectives.

Scarce financial resources are properly allocated and managed to optimize

investment in infrastructure.

A long-term (life-cycle) approach is taken when determining asset

operations, maintenance, and renewal and development strategies.

The benefits of improving asset management planning practices include:

Improved understanding of service level options and costs;

Improved decision making based on the benefits and costs of alternatives;

An ability to better communicate and justify investments to stakeholders;

An ability to demonstrate responsible investment in infrastructure;

Improved knowledge of the timing and magnitude of future investments

required to operate, maintain, renew and acquire assets;

An ability to establish and evaluate performance benchmarks.

9.3.3 Information of Municipal Assets

Water Supply: The water supply assets basically comprise of all the assets from the head

works, treatment plant, sump, transmission mains, pumping mains, Feeder mains,

distribution mains and sub mains, including all valves, connections, meters and all related

facilities for the efficient delivery service of water.

Sanitation: The Corporation does not have any sewerage system since 100% of the

sanitation is through septic tanks and low cost sanitation units. The Corporation owns 171

community toilets and 6 Pay & Use toilets.

Land and Buildings: Buildings are of 2 types; remunerative and non remunerative. The

remunerative assets mainly constitutes of the markets, commercial complexes, Bus stands

and Office Buildings. The list of Assets of the Corporation is given in Annexure 6.

On-going Schemes: Projects under implementation has to be also taken into account while

finalizing the asset register. The details are given below:

9.3.4 Major Findings

There are several discrepancies between the land details shown in land schedule. It is

strongly recommended that a zero base validation and updation exercise covering the asset

register be taken up on priority.

The Corporation should prepare and implement an annual maintenance plan (along with an



assessment of cost implications) for all land and building assets. This maintenance plan

should precede budget preparation process and should feed into the budget, so that the plan

is adequately funded.

The Corporation should progressively move towards achieving revenue realizations in line

with market trends from all its remunerative assets including shops, markets etc. This is

achievable through a combination of a) periodic increases in rates charged and b)

improvement and better maintenance of the assets through periodic and planned

maintenance.

9.3.5 Recommendation for an efficient Asset Management system

Condition Assessment Survey (CAS) establishes the existing condition of the asset and

hence is a benchmark for comparison, not only between different assets, but for the same

asset at different times. Condition Assessment Survey records the deficiencies in a system

or component, the extent of the defect, as well as the urgency of the repair work; in some

cases the estimated cost of repair is provided at the time of inspection. This type of

systematic inspection is essential for asset management as it provides data for the

"maintenance management", "service life prediction" and "risk analysis" enabling

technologies, mentioned earlier.

The data collected in a Condition Assessment Survey should reflect the change in the

reliability of the system as a whole. This implies that the state or condition of a system

being inspected should then be linked to the change in reliability of the system or its

components. In this way, programmed maintenance and repair for a given system can be

based on updated reliability estimates.

Record Keeping - Fixed Asset Register: Once the assets have been identified, listed and

valued by the ECMC, their record needs to be maintained and continually updated. This is

achieved through the Fixed Asset Register (FAR). If the FAR is not continually updated,

the efficacy of the entire asset identification, valuation and management will be greatly

reduced. The FAR will form the basis for further planning and maintenance under the

Asset Life Cycle Management (ALCM) strategy for the ECMC.

Asset Life-cycle management strategy: Asset Life Cycle Management (ALCM) is a

strategic, integrated approach to maintenance that considers all the elements that affect the

productive life of an asset - from design to disposal. It is a proactive process that

compliments existing policies by providing strategic focus and perspective.

ULBs which successfully adopt asset life cycle management will reduce maintenance costs

and improve productivity through superior planning. From design to disposal, an asset's

life cycle includes the following stages:

Clarify the need or requirement to be satisfied by the asset;

Identify the type of asset suitable for the requirement and fulfil the need;

Determine the maintenance strategy, cycle and plan for the life of the

asset;

Purchase the asset;

Commission, operate and maintain the asset; and

Dispose of the asset at the end of its economical life.



To achieve ALCM, organizations need visibility into three main areas of maintenance

planning; short term planning, and long term planning. These planned maintenance

strategies improve reliability, overall productivity, the length of an asset’s life, and

ultimately reduce the total cost of asset ownership.

Asset Management Unit (AMU): It may be useful for the Corporation to set up an Asset

Management Unit (AMU) so that various aspects of asset life cycle are properly managed.

This AMU may be centrally located and under the charge of the Commissioner. The

justification for the cell to report directly to the Commissioner arises from the fact that the

use of many of the fixed assets such as land and building has policy overtones, and the

alternatives in these respects may have to be examined from a larger perspective.

In this connection, it is also to be noted that planning for assets (capital budgeting) is a

specialized and time consuming exercise by itself, and most departments of finance and

accounts in ULBs do not have the wherewithal in terms of either time or human resources

to spare for it. Hence, the AMU can have specialized and dedicated staff for exclusively

focusing on these issues.

Using IT for Asset Management: Since the Corporation has a large number of assets, it

would be most efficient to use appropriate IT tools for their management. Asset tracking

can be done through Fixed Asset Registers (FARs) which can be maintained on databases.

Maintenance plans and schedules can be best managed through project management and

resource scheduling software. Preparation of various reports should be automated and

schedules (such as for depreciation) generated through software.

In addition to the above, for creating an accurate MIS, the Corporation should use the

following for more authentications of the assets:

Creating a Geographical Information Systems (GIS) database of the assets

identifiers.

Global Positioning Systems (GPS) technology assists for rapid and

accurate data collection, precise identification of building or service

locations, calculations of areas and lengths, estimation of building height,

and more importantly the easy, clear and unambiguous documentation of

physical location of identified defects and potential problems.

Integrated road asset creation and management: The quality of road construction

particularly in urban areas is inconsistent ranging from well-laid roads in select areas to

poorly designed roads that does not last even a single monsoon season. In this regard

CMA along with the State Highways department should initiate the following actions:

Standards: Define standards for urban roads construction covering

technical specifications (construction material, equipment use, process for

road construction)

Procurement guidelines: Review procurement guidelines for empanelment

/ selection of contractors including incentives and penalties to ensure

adequate accountability

Showcase project: Identify one major arterial high-density road corridor

(as identified in CMP) in Erode for development in an integrated manner



covering strengthening / widening, encroachment removal, de-

bottlenecking through junction improvements and grade separators,

streamlining parking, guidelines for right of way for road users (such as

TNEB, BSNL etc) and aesthetics/signage. Implementation of such projects

could potentially have a demonstration effect and could contribute to

widespread replication and adoption.

Management of water bodies and storm drains/channels: Storm water drains are among

the most expensive assets to be created by ULBs and yet least priority gets accorded to

maintaining storm drains and keeping them clean. Further, there is inadequate planning

and sub-optimal drain construction in an isolated manner without a detailed review of

interlinking needs with natural drainage channels and water bodies. TNUIFSL and CMA

should consider initiating a technical assistance support to ECMC to develop a blueprint

for an integrated water and flood management plan covering a) identification of potential

water catchment points (including restoration of water bodies), b) identify arterial canal

networks that need to be developed/strengthened based on a review of flooding and

water flow patterns and c) specify ward level guidelines for storm water drain

construction in terms of linkages and gradient of local storm water drain construction

initiatives.

9.4 Suggested Reforms for Improving Financial Performance

Ability to improve on its financial performance hinges primarily on its ability to sustain

and improve on the revenue growth noticeable in recent years. While there is potential

for expenditure control in certain areas (as in the case of energy costs), the focus of cost

management should be to shift expenditure from administration to better asset

management and O&M. The following paragraphs outline select interventions for

improvement of financial and operating performance.

Property Tax: As was observed, even though the property tax assessments increased to

more than 116,276 from about 32,813 between 2008-09 and 2011-12, the average tax

realisation per property dropped sharply from Rs. 2668 in 2010-11 to Rs. 1304 in 2011-

12. The collection efficiency has remained in the range of 70% to 73% in last 4 years up

to 2011-12. Therefore there is an urgent need to improve the situation through the

following actions:

1. ECMC should go for implementation of ARV revision in spirit and removal of

distortions in rates wherever existent. This will help improve revenue demand per

property from the current levels.

2. Property tax information of various residential units should be published online in

the same manner as the guideline values that are published

3. ECMC should progressively improve information on property assessments and

develop a robust and updated property tax database. In the medium term, should

shift to a GIS-based database to track, update and retrieve property tax

information

4. It should be made compulsory for all new building constructions to display the

building permission details obtained from the municipality for construction.

ECMC should actively encourage its citizens to report unauthorised buildings



construction and should disseminate online information on action taken on such

constructions to dissuade such activity.

5. ECMC should conduct a one-time survey to compile database of properties and

initiate sample checks in all wards on an ongoing basis. “Surprise checks” by

senior officials should be instituted to provide a sense of enforcement both to

municipal officials and citizens to improve compliance.

6. Reconcile and link assessment information with building permissions issued and

initiate a drive to bring unassessed properties under the tax net. A strong

coordination between departments within the Corporation by itself and bring

significant increase in assessment base and collection efficiency. The Revenue

department should reconcile its information across various databases on

households and other commercial properties available within the municipality.

Specific suggestions in this regard are listed below:

The Property tax database should be regularly updated based on the status

of building permissions issued by Town Planning Department

Whenever the Engineering Department provides water and sewage

connections, it should check with the Revenue Department for compliance

of those assesses with respect to property tax dues. The Water and

Sewage assesses databases should be regularly updated and reconciled

with the property tax database.

Whenever, the Health Department issues D&O and Trade licenses, they

should check on the status of property tax assessment and professional tax

assessment status for these licenses.

The D&O licenses and Trade licenses should only be provided for

applicants with a clear property tax assessment status and compliance.

7. GoTN should review Blanket exemptions of property taxes and revenue loss due

to exemptions should be compensated by GoTN

8. The elected municipal body should contribute to improvement in collection

efficiency. The top 25 default cases in each ward should be brought to notice of

respective ward councilors for improvement in collection efficiency. The list of

top 100 defaulters should be disseminated online and through other media to

build peer pressure against willful defaulters. At the same-time should work with

GoTN to initiate a one-time drive and settlement scheme for long-standing

arrears.

9. Simplify payment of property tax dues by providing multiple options; a) payment

through banks b) additional facilitation / e-governance counters, c) mobile vans

and door-to-door collection drives, d) online payment option and e) payment

through credit cards etc.

10. Make it compulsory for clearing property tax dues for provision of water and

sewerage connections.

11. The linking of grants to improvement in collection efficiency as in the case of

JnNURM and UIDSSMT should be institutionalized for receipt of state

government grants too.

12. Implement Payment Due Date and penalties to incentivize on-time payment

Professional Tax: Professional tax has grown at 29% over the last five years and is

becoming an important revenue stream. It is also a visible revenue stream and collection

efficiency has been 95%. Even though there has been a steep increase in the last two

years in the number of professional tax assessments, ECMC should widen its



professional tax base by bringing more traders and independent professionals within the

ambit of professional tax. Specifically, ECMC should consider tapping into databases of

potential professional tax assesses including Professional associations (including

Institute of Chartered Accountants of India-ICAI, the Bar Council, Medical Council etc),

databases of Commercial Taxes Department, GoTN and other local directories / yellow

pages. A targeted approach should be followed to widen the tax base for professional tax.

User Charges: Rationalisation of user charges should be guided by the following

principles and considerations:

Linkage to service levels: Even though O&M costs tend to increase year after

year, it is often difficult to convince households to absorb these tariff increases

unless a base level of service levels commitments are defined, articulated and

met. User charges must therefore be progressively linked to service level

improvements.

Extent of cost recovery: At present, reform under JNNURM currently mandates

recovery of O&M costs as a minimum. It is critical to recognise the need to move

towards full cost recovery in the medium-to-long term to enable sustainable

financing of creation and maintenance of water infrastructure.

Addressing affordability considerations: Provision of universal access of water

supply and addressing the needs of urban poor is a key consideration for tariff

reform. This needs to be addressed through a combination of a minimum access

commitment and by exploiting possibilities for differential pricing including

“ability to bear” principle for high volume users and leveraging potential for cross

subsidisation. Keeping tariffs universally low is a regressive policy and tends

to disproportionately benefit the relatively rich.

ECMC should implement the following actions to improve revenues from user charges

along with steps to implement the on-going Dedicated Water Supply Scheme (DWSS)

project on priority.

1. Providing water fountains only in areas with a predominantly low income

population to minimize revenue loss

2. Improve revenue per connection through implementation of either a graded water

tariff scheme.

3. Should consider stiff penalties for non-payment of user charges. Specifically

should consider implementation of late payment fines and in case of extreme

overdue situations, disconnecting supply. Recommendations under Property tax

apply for improving collection efficiency in user charges as well.

ECMC should also consider introducing solid waste management charge from domestic

and non-domestic sources at differentiated rates. For non-domestic sources, the charges

shall also be linked to the volume and type of waste generated.

Rentals from Building Assets: ECMC has around 10,000 sqm of building area under

Market, shopping complex and other remunerative uses. The rentals received annually

from these is approximately Rs. 3 crore which comes to around Rs. 25 per sq ft per

month (Rs 250 per sq m per month). This shows that the rentals are low for the

commercial use and can be revised to meet the market value. A feasibility study should

be done for the vacant land available with ECMC for development of shopping



complexes, markets and other facilities so as to improve the municipal finances form

rentals. As per discussion with ECMC officials, the old bus stand has been identified for

development of shopping complex and multi level parking.

Public Private Partnerships: In Tamil Nadu, state level PPP cell has been formulated

as the nodal agency to guide the various Govt. Agencies such as CMDA, TNSCB,

TNAMB. The processes such as vetting of RFQ/RFP, Project preparation, Procurement

of private operator, Approvals etc are being handled by the cell at present. A database

consisting of model bid documents, success models, sector wise PPP consultants and

operators need to be formulated at the state level and its dissemination to public sector

agencies and various ULBs should be done by conducting workshops. An experts

committee should be formulated at the state level consisting of PPP experts,

infrastructure experts and other technical experts to provide assistance to ULBs in PPP

projects Well-structured PPPs apart from relieving ULBs of some investment burden

could also be a potential revenue enhancement option, particularly in structuring

remunerative projects. In particular, ECMC could take the following measures:

1. Evaluate PPP options for development remunerative land development projects

2. Actively encourage corporate / NGO partnerships for city beautification and asset

management in areas covering bus stops, street lighting, medians, parks and road

junctions. Given that Erode has a number of institutions and corporates in the

vicinity, could encourage them to adopt specific municipal assets and maintain

them as part of Corporate Social Responsibility.

3. ECMC should regulate posters and hoardings and outdoor advertising rights

available to it to incentivise maintenance of above mentioned municipal assets by

corporates that depend on outdoor advertising including banks, consumer goods

and retail companies

TNUIFSL should continue to provide comprehensive assistance covering necessary

capacity building (in terms of evaluating mechanisms - BOT, SPV etc) and financing for

developing projects through private sector participation. CMA, GoTN along with

TNUIFSL could also develop model concessions involving Private sector in various

areas including solid waste, parking, commercial & warehousing infrastructure, foot over

bridge, solar energy, public convenience O&M, street light & remunerative projects.

As per the projects identified hereinabove for ECMC, the sectors that are amenable to

PPP are as below:

Solid waste management (waste to energy / decentralization)

Parking cum commercial centre

Street Lighting Project on PPP

Public convenience O&M

Commercial and warehousing infrastructure

Foot over bridge

Solar energy

Measures for Cost Management & Resource Utilization Efficiency: ECMC should

initiate the following steps to reduce its power costs:

1. Conduct a comprehensive energy audit to identify areas for reducing power

consumption and related costs.



2. Implement automatic time based dimmers on street light network and ensure that

all pumps / motors are energy efficient.

3. Conduct surveys, and water audit to track Non Revenue Water and Un-Accounted

for water.

4. Assess the level of leakages in water supply and to recommend measures to

minimise the same

It is necessary to improve efficiency of water supply system by reduction of NRW. A

comprehensive water audit should be planned for reduction of NRW. This is done by

dividing the area into number of water supply zones. Installation of bulk meters, flow

meters, valves and related accessories should be done to determine the leakages in the

system. Leak detection shall be followed by repair to reduce water losses. Components

like SCADA, Bulk Metering, and refurbishment of pumping stations shall be employed

for assessing the system performance.

9.5 Technical Assistance Needs

As per strategies proposed under various sectors would need technical assistance to carry

out various studies as given below:

Table: Technical Assistance & Project Development Needs

No. Sector Project Status Detailed

Planning /

DPR Needed

1 Water Supply Dedicated Water Supply

Scheme

DPR prepared -

2 Sewerage &

Sanitation

UGSS Phase-1

UGSS Phase-2

DPR prepared

Proposed

-

Yes

3 Storm Water Storm Water Drains Proposed Yes

4 SWM Integrated Solid Waste

Management Plan

Proposed Yes

5 Transportation Comprehensive Mobility

Plan

Under

Preparation

Yes

6 Housing for

Urban Poor

Slum Free City Plan of

Action under RAY

Under

Preparation

Yes

7 Heritage &

Tourism

Tourism Master Plan;

Heritage Conservation /

Restoration Plan

Proposed

Proposed

Yes

Yes

8 Urban

Environment

Development of

Perumpallam Odai;

Development of Lakes;

EIA & Environment

Management Plan

Prepared

Proposed

Proposed

-

Yes

Yes

9 Urban

Governance

Asset Condition

Assessment Survey;

E-Governance Plan;

Central Database &

Information System for all

infrastructure facilities

Proposed

Proposed

Proposed

Yes

-

-



10 Financial Operating Plan

10.1 Introduction

The Financial Operating Plan is essentially a multi-year forecast of financials of the

Municipal body to check the long term financial sustainability of the estimated capital

investment.

The FOP horizon is determined to assess the impact of full debt servicing liability resulting

from the borrowings to meet the identified interventions. The proposed capital investments

are phased over short and medium term (i.e. 12 years from FY 2012-13 to FY 2023-24).

The FOP assesses the potential areas for improvement in revenues and investment capacity

of the ULB with focus on assessing investment capacity of the ULB for the short and

medium term.

The main agency implementing CDP is the Erode City Municipal Corporation (ECMC). A

detailed account of its finances has already been discussed in Chapter 5 on “Municipal

Finance” which deals with the Capital Investments proposed in the previous chapter.

The Financial Operating Plan (FOP) is primarily generated to assess the investment

sustaining capacity of the ULB by adopting project funding structure as mentioned below:



JnNURM Grants 80%

State Government 10%

ECMC/ULB Contribution 10%


TNUDF Loans 34.0%

Grants 36.42%*

ECMC/ULB Contribution 29.58%




TNUDF Loans 60.0%

Grants 30.0%



Loans 90.0%

Grants 00.0%




The major criterion for ascertaining the investment sustaining capacity of the Expanded

ECMC area is that:

i. It should have year-to-year positive Opening Balance during the plan

period and

ii. That the debt servicing expenses should not exceed 30% of total revenues

for each year during the plan period.

10.2 Financial Operating Plan for Expanded ECMC

The financial data of ECMC from FY 2006-07 to 2011-12 has been used as the base for

the preparation of FOP during the plan period. The FOP model spreadsheet has been

customized so as to work out the ultimate investment sustaining capacity of Expanded

ECMC based on the FOP assumptions.

The main items of income and expenditure have been classified into two accounts for

assessing the financial position of the ECMC viz. Revenue Account and Capital Account.

The same has been adopted for the FOP and further Revenue Account Receipts and

Expenditure were projected under following categories.

A. Revenue Account Receipts

Taxes

Non Tax Sources, and

Income from Other Sources viz. Grants, Contribution and Subsidies

B. Revenue Account Expenditure

Establishment Expenses

Administration & General Expenses

Repairs & Maintenance of Fixed Assets (including depreciation)

Debt Servicing

C. Capital Income

Loans

Grants

D. Capital Expenditure

10.3 Financial Operating Plan – Major Assumptions

Time Horizon:

Planning Horizon (30 years – 2012-13 to 2042-43): The Planning Horizon

considers a period of 30 years from 2012-13 to 2042-43 and involves planning for

short (5 years), medium term (12 years) and long term (30 years). This Time

Horizon is consistent with typical timeframes for planning infrastructure asset

creation and preparation of Detailed Project Reports and ongoing projects.



Investment Horizon (12 years 2012-17): The FOP evaluates the sustainable

financial capacity to implement the investments identified for short and medium

term.

FOP Horizon: Since loans taken for capital projects typically are of longer tenure

(say 30 years), the FOP has projections and estimates of Income, Expenditure and

Debt servicing) for 30 years i.e. from 2012-2042

10.4 Financial Operating Plan – Major Assumptions

A. Forecast of Revenue Income -

(I) Income from Taxes: The CAGR of revenue income from taxes during the period 2007-08 to 2010-11 was 8.3%.

The major assumptions adopted for the forecast of Revenue Income from taxes is shown in

the following table:

Table: Forecast of Income from Taxes

S.No. Item Assumptions adopted for

forecast

Basis

1 Property Tax

(incl. water &

drainage tax,

general tax

and education

tax)

Growth in assessment by 2%

annually.

Current CAGR is 1.4% (no.

of assessments = 117,909

units)

Tariff to be increased by 20% in

2013-14 and at intervals of

every 4 years up to year 2021-22

and then increase by 25% at

intervals of every 4 years

Tariff was last increased in

the year 2008-09

Continue to maintain the

collection efficiency above 95%

Currently collection

efficiency is around 98%




forecast

Basis

2 Water Tax New Water Supply Scheme to

increase distribution network

length to 796.4 km covering

almost 100%.

Currently length of

distribution network is 472

km (approx. 60% coverage)

Increasing connection to 80% of

the properties assessed by 2016-

17

Current connections are

approx. 55% of properties

assessed (65,153

connections)

For Domestic Connections:

Increase tariff to Rs. 60/month

up to 10,000 litres and Rs. 4 for

every additional 1,000 litres

from commencement of year

2015-16 (after completion of

Dedicated Water Supply

Scheme). Thereafter increase the

tariff by 20% every 5 years.

For Non Domestic Connections:

Increase tariff to Rs. 168/month

(an increase of 40%) up to

10,000 litres and Rs. 15 for

every additional 1,000 litres

from commencement of year

2015-16 (after completion of

dedicated water supply scheme).

No increase proposed for areas

where tariff is above Rs.

168/month. Thereafter increase

the tariff by 25% every 5 years.

Domestic Connections: For Old Erode Municipal

area the existing tariff is Rs.

40/month up to 10,000 litres

and Rs. 3 for every

additional 1,000 litres In

extended areas (except

villages), the tariff is

between Rs. 50 to Rs.

62/month; same tariff

existing since year 2001

Non Domestic Connections:

For Old Erode Municipal

area, the existing tariff is Rs.

120/month up to 10,000

litres and Rs. 12 for every

additional 1,000 litres. In

extended areas, the tariff

varies from Rs. 135 to Rs.

302/month; tariff existing

since year 2001

Repair / replacement of

malfunctioning meters in

existing connections by 2013-14

and increasing coverage of

metered connections to 100% by

2014-15

92% metered connections

and around 5% of these

meters not functional in the

existing connections

Post implementation of

Dedicated Water Supply

Scheme i.e. from 2015-16

onwards, new connections to

grow at CAGR of 13% up to

2017-18 to reach 100% coverage

HSC

Connections growth rate is

1.40%




forecast

Basis

Improve collection performance

to 95% by 2014-15 & sustain it

thereon

Collection efficiency is

around 90% since 2011-12

and 2012-13

3 Sewerage Tax Implementation of UGSS to

provide coverage to almost 75%

of the total area

Absence of sewerage

network

Connections to be made

available for 75,738 as per BOQ

of the Scheme and the

implementation to be completed

by 2015-16. New connections to

grow at 4% CAGR

Currently no connections.

Deposits received for around

1,000 connections - mostly

new housing permission.

Currently new connection

charge is Rs. 1,500

For Domestic connections

average tariff charges proposed

at Rs. 113 monthly

For non Domestic connections,

average tariff charges proposed

at Rs. 392 monthly

Tariff Charges to be revised by

25% at commencement of every

5th

year

Collection performance to be

maintained above 90%

4 Solid waste

Service Tax

To be introduced at the rate of

Rs. 250 per annum per

household and to be increased

by 25% at intervals of every 5

years.

To be introduced as a reform

to increase the revenue base

5 Professional

Tax

Increasing network coverage to

90% population.

Collection is between 80 to

85% over last 3 years.

currently 80% coverage to

population residing in

municipal limits

Tax to grown by 10% annually

for next 15 years and thence

stabilize at 5% annual growth

Has grown at CAGR of 20%

over Municipal finance

review period.

6 Entertainment

Charges

To remain constant

7 Street Light

Tax

To be introduced in 2014-15

Tariff at Rs. 125 per assessment

and to be increased by 25% at

interval of every 4 years

To be introduced as a reform

to increase the revenue base

8 Other Taxes To remain constant Collection is constant for

last 3 years



(II) Income from Non Tax Sources: The CAGR of income from Non Tax Sources during the period 2007-08 to 2010-11 was

4.7%. The assumptions adopted for forecast of Revenue Income from Non Tax Sources is

shown in the following table:

Table: Forecast of Income from Non Tax Sources


forecast

Basis

1 Income from

Rented

Properties

Rentals of remunerative

assets to continue growing

by 10% annually over the

CIP period.

Redevelopment of Gani

Market complex and Nethaji

Market shall increase the

rental remarkably. The

rentals from paid parking

facility proposed at the

abovementioned places shall

also improve the rentals for

ECMC.

Rentals from remunerative assets

have grown at average rate of

5% from 2010-11 to 2012-13

2 Income from

Building

Permission

New Permissions to grow at

2% annually

Annual Growth rate recorded for

ECMC assessed properties was

1.4% for year 2012-13.

Approx. 1,500 new building

permissions recorded in Year

2012-13

Building approval charges

to be increased by 25% at

intervals of every five years

Current charges are approx. Rs.

2,000 per property

3 Income from

New Water

Supply

Connection

Domestic Connection:

New connection charges to

be increased by 20% in

ECMC area from 2015-16.

Connection charges to be

increased by 25% at interval

of every 5 years.

Kasipalyam to be excluded

as it is already high at Rs.

4,000 per connection. New

connection charges to be

increased by 25% every 4

years

Non Domestic

Connections:

Domestic Connections:

Current deposit taken as charges

for new connection is Rs. 2,500

for Old Erode Municipal area. It

has not been revised since 2001.

In 4 municipalities and 2 Town

Panchayats added to ECMC, the

deposit charge varies from Rs.

2,000 to Rs. 4,000.

In the 5 Village added to ECMC,

the deposit charges are between

Rs. 1,000 to Rs. 1,500.

Non Domestic Connections: Current deposit taken as charges




forecast

Basis

New connection charges to

be increased by 20% in

ECMC area from 2015-16

and therafter at the rate of

25% at intervalas of every 5

years.

Kasipalyam and BP

Agraharam to be excluded

as it is already high at Rs.

8,000 and Rs. 7,000 per

connection respectively.

for new connection is Rs. 6,000

for Old Erode Municipal area. It

has not been revised since 2001.

In 4 municipalities and 2 Town

Panchayats added to ECMC, the

deposit charges vary from Rs.

5,000 to Rs. 8,000.

In the 5 Village added to

ECMC, the deposit charges are

between Rs. 1,000 to Rs. 2,000

(excluding Thindal village where

it is Rs. 5,000)

Increasing connection to

80% of the Households by

2017-18

Current connections are approx.

55% of properties assessed

(65,153 connections)

Post implementation of

Dedicated water supply

scheme i.e. from 2015-16

onwards, new connections

to grow at 6% CAGR upto

2024-25 to achieve 100%

Household coverage and

then grow at 1.5% annually

Connections growth rate is

1.40%

4 Income from

New

Sewerage

Connection

For Domestic Connections,

average Deposit charges

proposed at Rs. 7,761

For Non Domestic

Connections, average tariff

charges proposed at Rs.

27,467

Connection charges to be

increased by 20% at interval

of every 4 years

Connections to be made

available for 75,738 as per

BOQ of the Scheme & the

implementation to be

completed by 2015-16

Currently no connections

New connections to grow at

4% CAGR

Deposits received for around

1,000 connections - mostly new

housing permission

5 Other Service

Charges &

Fees

To continue growing at

12.5% annually over the

CIP period

Have grown at 12.4% for year

2010-11 to 2011-12

6 Other Income To grow at 15% annually

over the CIP period

Have grown at 16% over year

2006-07 to 2011-12




forecast

Basis

7 Remaining To grow at 15% CAGR

8 Income from

Parking

Facilities

Income from newly

proposed parking facilities

at Gani Market complex and

Nethaji market estimated at

1 crore/annum.

No paid parking facility by

Municipality currently

Based on the above assumptions, the revenue income from Non-Tax Sources is projected

to grow annually at a CAGR of 12.5% from 2013-14 to 2017-18 and thereafter the growth

rate is assumed to stabilize at 10% from 2023-24 onwards.

(III) Income from Grants, Contribution & Subsidies:


forecast

Basis

1 General

Grants

contribution

and subsidies

To grow at 15% annually

Have grown at 23.7% for review

period: 2010-11 to 2011-12

2 Devolution

Fund

To grow at 20% annually

upto next 10 years and

thereafter grow at 12.5%

annually

Have grown at CAGR above

30% for review period: 2010-11

to 2011-12

3 Assigned

Revenue

To grow at 12.5% annually Have grown at the rate of 15%

annually

B. Forecast of Revenue Expenditure –

The CAGR of Revenue Expenditure from 2007-08 to 2010-11 was 18.7%. The

assumptions adopted for forecast of Revenue Expenditure is shown in the following table:



Table: Forecast of Revenue Expenditure


forecast

Basis

1 Establishment

Expenses

To grow at 12.5% CAGR

for the period of 2013-14 till

2017-18 and thereafter

consolidate to around 10%

CAGR

Has grown at 18.8% CAGR over

last 4 years i.e. from 2007-08 to

2010-11

2 Administration

& General

Expenses

To grow at 2.5% CAGR

Has grown at 1.2% CAGR from

2007-08 to 2010-11

3 Service &

Utility

Charges

To grow at 15% CAGR

Has grown at 20% average rate

from 2007-08 to 2011-12

4 O&M &

Repairs

(Existing

Services)

To continue at 12.5%

CAGR between 2013-14

and 2022-23 and later

stabilize to 10% CAGR

from 2023-24 onwards

Has grown at 13.6% CAGR

from 2007-08 to 2011-12

5 Additional

O&M &

Repairs (New

Services)

Certain percentage new

investments in a phased

manner - commence with

1% in initial years and

gradually increase with age

6 Debt Servicing

(Finance

Charges)

Outstanding loans to be

serviced

7 New Debt

Servicing

(New Loans)

Fresh loans to be raised to

fund 34% of the new

investments identified for

short and medium term

Interest considered @ 9%

per annum.

Loans to be repaid in a

period of 18 years from date

of inflow.

C. Forecast of Capital Income –

The Capital Income has grown at an average annual rate of 20.2% from 2007-08 to 2010-

11. The assumptions adopted to forecast of Capital Income is shown in the following table:



Table: Forecast of Capital Income


forecast

Basis

1 Funding of New

Capital Works

Identified

Funding structure (WS,UGSS

(phase II) & Sanitation, SWD,

SWM, Heritage/Tourism & Urban

Governance) :

JnNURM Fund: 80%

State Government Fund: 10%

ULB: 10%

Funding Structure for UGSS Phase

1 is already finalized / approved as

below;

Grants: 36.42%

Loan: 34%

ULB: 29.58%

Funding structure (roads, Street

light, Basic Infra for slums, Urban

Environment, Social

Infrastructure)-TNUDF Funding:

TNUDF Loan: 60%

Grant: 30%

ULB: 10%

Funding structure for commercial

and industrial infrastructure; Loan: 90%

Grant: 0%

ULB: 10%

2 Regular Scheme

based Capital Grants

Grows annually at 2.5% CAGR

for the first five years i.e. from

2013-14 till 2017-18, to reduce to

12.5% for next 5 years i.e. from

2018-19 till 2022-23 and then

consolidate to 10% for next 10

years i.e. from 2023-24 till 2032-

33 and eventually stabilize to 9%

CAGR from 2033-34 onwards.

Have grown at

20.2% average rate

over last 5 years up

to 2011-12

3 Other Capital Income

/ Borrowings

30% cost of the projects identified

D. Forecast of Capital Expenditure – The Capital Expenditure has grown at an average annual rate of 14.1% for the last five

years i.e. from 2007-08 to 2011-12. The assumptions adopted for forecast of Capital

Expenditure is shown in the following table:



Table: Forecast of Capital Expenditure


forecast

Basis

1 Regular Scheme

based Capital Grants

To grow at 2.5% CAGR for

period up to 2022-23 and

thence at 15% annually for

next 10 years and after that by

17.5% annually to utilize the

surplus projected in revenue

account

Have grown at 14.1%

average rate over last 5

years up to 2011-12

2 Funding of New

Capital Works

identified

As phased in the CIP

10.5 Identification of Projects and Phasing

The project identification has been based on the strategies listed under each of the service

sector as identified in previous chapters. The projects derived based on the estimates are

aimed at ensuring optimal and efficient utilization of existing infrastructure systems. Other

developmental projects include projects other than those for Core Service Sector viz.

Urban Housing and Slum Upgradation, Municipal Governance, etc.

The total estimated Capital Investment requirement for the medium term for providing

efficient infrastructure and services for the population of Expanded ECMC by 2024-25 is

Rs. 2123.52 Crores. The table below presents the summary of Sector-Wise Investment

requirement for the Core Service Sectors.

S.No. Sectors Total Investments Investments (in %)

Rs. Crores 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12

1 Water Supply 18.9% 401.2 10% 24% 24% 29% 10% 0% 0% 0% 0% 0% 0% 0%

2 Sewerage & Sanitation 14.7% 312.8 27% 13% 10% 1% 1% 8% 8% 9% 11% 11% 0% 0%

3 Roads & Transportation 41.2% 875.5 6% 10% 10% 10% 10% 8% 8% 8% 8% 8% 8% 8%

4 Storm Water Drains 11.3% 240.3 13% 16% 16% 16% 16% 3% 3% 3% 3% 3% 3% 3%

5 Solid Waste Management 2.8% 58.8 14% 28% 26% 16% 5% 1% 7% 1% 1% 1% 1% 1%

6 Street Lights 1.9% 39.9 0% 15% 19% 19% 19% 4% 4% 4% 4% 4% 4% 4%

7 Basic Infrastructure Facilities for Notified

Slums

1.4% 30.0 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 0% 0%

8 Urban Environment 1.8% 39.0 0% 68% 32% 0% 0% 0% 0% 0% 0% 0% 0% 0%

9 Social Infrastructure 0.6% 11.8 8% 5% 35% 5% 5% 9% 9% 9% 9% 5% 0% 0%

10 Heritage & Tourism 0.4% 8.5 2% 5% 27% 24% 13% 10% 13% 4% 1% 1% 0% 0%

11 Urban Governance, Capacity Building &

Policy Studies

0.4% 8.0 41% 22% 13% 13% 13% 0% 0% 0% 0% 0% 0% 0%

12 Commercial & Industrial Infrastructure 4.6% 97.7 0% 21% 24% 40% 16% 0% 0% 0% 0% 0% 0% 0%



Basic core city infrastructure services like Roads & Transportation, Water Supply and

Sewerage & Sanitation accounts for the highest share viz. 41.2%, 18.9% & 14.7%

respectively of the total identified investments whereas non-core sectors like Basic

Infrastructure Facilities for Notified Slums and Social Infrastructure accounts for 1.4% and

0.6% respectively. The phasing of the outlays is done such that the projects are completed

within a 12 year plan period. The following diagram shows the percentage share of

investments identified for each sector:



10.6 Prioritising the Identified Projects

The identified projects have been prioritized based on the importance of their immediate

requirement and the prevailing condition of the area under study. Each sector has been

ranked in the table below in order of their priority:

Table: Priority of Investments – Sector Wise

Sectors Rank Investments

(Rs. Crores)

Water Supply 1 401.2

Urban Environment 2 39.0

Roads & Transportation 3 875.5

Sewerage & Sanitation 4 312.8

Storm Water Drains 5 240.3

Street Lights 6 39.9

Urban Governance, Capacity Building & Policy Studies 7 8.0

Social Infrastructure 8 11.8

Basic Infrastructure Facilities for Notified Slums 9 30.0

Heritage & Tourism 10 8.5

Commercial & Industrial Infrastructure 11 97.7

Solid Waste Management 12 58.8

10.7 Methodology

The trend of income and expenditures under majors heads of Revenue Account and Capital

Account were analyzed individually and based on their growth scenario for the plan period

of 12 years i.e. from 2013-14 to 2024-25, a conservative growth rate has been assumed for

each head. Based on this assumed growth rate, incomes and expenditures account have

been projected for various heads under Revenue and Capital Account. The details of these

projections have been shown ahead.

The 30% share of investments to be contributed by municipal body is assumed to be raised

as loan for tenure of 15 years at 9% annualized interest. The loan inflow is assumed in a

phased manner for the plan period.

The cash flows of income and expenditures under Revenue and Capital Account have been

shown for an extended period up to financial year 2032-33 to understand the impact of

loan repayment on municipal finance.

Sizing of the Capital Investment - The phased investment is loaded onto the FOP model,

and based on the assumptions adopted the annual finances of ECMC are forecasted till FY

2024-25. The criterion for ascertaining investment sustainability is

1. A year-to-year positive Opening Balance during the plan period, &

2. Debt servicing expenses not to exceed 30% of revenues

In cases where ECMC did not show a positive closing balance during all years of the plan



period, the investment was scaled down uniformly across all sectors of identified

investment, till the above criterion were met. The investment level at which all the years of

the plan period show a positive closing balance is the sustainable investment by ECMC.

10.8 Results of the FOP

The FOP is generated for the sustainable investment while also incorporating availability

and adequacy of internal revenues to cater to the additional Repair and Maintenance works

that would arise out of the proposed Capital Investment.

The 30-year FOP of Expanded ECMC is presented in the Annexure 1 & 2. It may be noted

that, under the assumptions made and availability of grants under JnNURM Framework,

ECMC shows sustainability of 55% of the identified investment amounting to Rs.

1167.9 Crores.

ECMC maintains a positive closing balance during all the years of the planning horizon.

ECMC would have operating surplus year after year. The improvement in the performance

of ECMC would be due to the enhanced revenues from own sources in line with the

mandatory reforms proposed under JnNURM.

The results of the FOP in terms of the total investment, investment sustainable and source

wise funding of the sustainable investment is presented in Annexure 1 and 2.

10.9 Fund Requirement

The funding for the entire identified investment of Rs. 2123.52 Crores as worked out in

the FOP model would be by way of:



JnNURM Grants Rs. 715 Crores (80%)

State Government Rs. 089 Crores (10%)

ECMC/ULB Contribution Rs. 089 Crores (10%)



Grants Rs. 50.0 Crores (36.42%)*











Loans Rs. 88.0 Crores (90.0%)



Since the FOP provides a sustainability level of only 55%, the funding at sustainable level

for the entire identified investment comes to around Rs. 1167.9 Crores.



11 ANNEXURES


CDP for Expanded Erode City Municipal Corporation - 1 -

Annexure-1: Income & Expenditure: Trends & Projections (Revenue & Capital Account)

Existing Revenue Income of last 5 years

S.No. Particulars Income (Rs.Crores)2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

0 1 2 3 4 5 6A Tax Revenue1 General Municipal Taxes

Property Tax, Professional Tax 6.85 7.02 8.38 8.58 8.89 14.16 15.34

2 Other Direct TaxesProfessional Tax 0.78 0.89 0.99 1.72 1.62 3.30 3.14

Sub-Total A. Tax Revenue 7.63 7.91 9.38 10.30 10.51 17.45 18.48

B Non-Tax Revenue1 Rents from ECMC Owned Properties 4.13 3.94 3.90 4.16 4.36 4.58 4.81

2 Public Service Charges / Fees 2.34 2.07 1.92 2.00 3.41 7.93 10.26

Sub-Total B. Non-Tax Revenue 6.47 6.01 5.81 6.16 8 13 15

C Income from Other Sources1 General Grants, Contribution & Subsidya General Grants, Contribution & Subsidy 0.12 0.78 0.89 0.00 0.26 0.70 0.91 b Devolution Fund 3.76 7.57 7.15 8.00 11.73 27.66 30.98 c Assigned Revenue 1.93 1.48 1.43 1.16 1.34 3.43 7.42

Sub Total-1 5.81 9.83 9.47 9.16 13.33 31.79 39.31 69% -4% -3% 45% 139% 24%

2 Miscellaneous Incomea Sale & Hire Charges 0.03 0.07 0.00 0.08 0.06 0.077 0.0904b Other Miscellaneous Income 1.72 2.33 3.47 2.34 1.97 3.61 9.67

Sub Total-2 1.75 2.40 3.47 2.42 2.03 3.69 9.76

Sub-Total C. Other Revenue 7.56 12.23 12.94 11.58 15.36 35.48 49.07

TOTAL REVENUE INCOME 21.66 26.14 28.13 28.04 33.64 65.44 82.62

Revenue Income Projected Cash Flow

Existing Revenue Expenditure of last 5 years



S.No. Particulars Expenditure (Rs.Crores)2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

0 1 2 3 4 5 6A Establishment Expenses1 Salary & Wages (Payments & Benefits to Employees) 10.26 12.15 14.85 17.82 20.46 25.7394 34.3517

Sub-Total A. Establishment Expenses 10.26 12.15 14.85 17.82 20.46 25.74 34.35

B Administration & General Expenses1 Administration Expenses 0.48 0.82 0.90 0.98 0.99 2.15 14.74

2 Services & Utilities Charges 3.29 2.76 2.82 3.08 2.99 8.70 9.56

3 Other General Expenses 0.07 0.47 0.04 0.07 0.04 0.71 1.92

Sub-Total B. Administration & General Expenses 3.85 4.05 3.76 4.13 4.03 11.56 26.22

C Repairs & Maintenance of Fixed Assets1 Repairs & Maintenance of Fixed Assets 1.55 2.11 1.74 1.46 1.43 4.23 7.45

2 Depreciation of Assetsa Depreciation 3.87 5.56 6.23 6.48 7.60 8.51 9.53

Sub-Total C. Repairs & Maintenance of Fixed Assets 5.42 7.67 7.96 7.94 9.03 12.74 16.99

D Debt Servicinga Finance Charges 1.09 6.24 10.54 5.58 7.39 1.07 1.55

TOTAL REVENUE EXPENDITURE 20 24 27 30 34 50 78

Revenue Expenditure Projected Cash Flow

Capital Income of last 5 years



Capital Income Projected Cash Flow

Capital Expenditure of last 5 years

Capital Expenditure Projected Cash Flow



Annexure-2A: Overall Cash Flows

Financial Performance Ratio for Projection Benchmark 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 2037-38 2038-39 2039-40 2039-40 2041-42 2042-43

1 TE/TR (Operating Ratio) < 1 1.03 0.99 0.91 0.96 1.24 1.15 1.05 1.03 1.06 0.88 0.87 0.84 0.79 0.78 0.74 0.71 0.67 0.66 0.62 0.60 0.58 0.56 0.52 0.52 0.49 0.48 0.47 0.46 0.45 0.44

2 Debt Servicing Ratio (%) < 30% 1.7% 1.3% 1.0% 0.8% 30.2% 25.4% 21.1% 18.6% 27.5% 13.9% 12.5% 11.4% 10.1% 8.7% 7.4% 6.4% 5.3% 4.5% 3.8% 3.2% 2.6% 2.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

3 Capital Utilization Ratio (CUR) > 1 0.8 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 1.0 1.1 1.3 1.4 1.6 1.8 2.0 2.3 2.5 2.9 3.3 3.8 4.4 5.0 5.8 6.6 7.6 8.7 10.0

4 Establishment Exp to Rev Exp (%) < 40% 45% 46% 46% 43% 32% 33% 35% 34% 32% 36% 36% 37% 39% 39% 41% 42% 44% 44% 46% 47% 48% 49% 52% 52% 53% 54% 54% 54% 55% 55%

5 Establishment Exp to Rev Income (%) < 49% 46% 46% 41% 41% 40% 38% 37% 36% 33% 32% 32% 31% 31% 30% 30% 30% 29% 29% 29% 28% 28% 27% 27% 27% 26% 26% 25% 25% 24% 24%

6 Share of O&M in total Rev Expenditure - 22.2% 22.9% 27.1% 26.4% 23.7% 25.1% 26.4% 30.2% 27.7% 32.1% 34.9% 35.2% 35.1% 37.3% 37.3% 37.3% 37.3% 38.8% 39.3% 39.2% 40.2% 39.9% 41.0% 41.5% 41.0% 40.6% 40.9% 40.4% 40.6% 40.2%



Annexure-2 B: Recovery Checks for Water Supply, Sewerage & Sanitation and Solid Waste



Annexure-3: Model Organization Structure for ECMC

Executive

Officer - Circle

Director -

UCD

AMC – Health &

Sanitation

Director – Urban

Planning

AMC – Revenue,

Audit, Finance & IT

AMC –

Establishments

Chief

Engineer PMC

Vigilance OfficerInternal Auditor

Strategic Planning UnitMunicipal Secretary

Municipal

Commissioner

Empowered Standing Committee

EE –UCD

Project Officer

- UCD

Revenue

Officer

Chief Sanitary

Inspector

Grievance

Redressal & RTIOfficer

Election & Census

Executive

Engineer

Community

Organizers

Revenue

Inspector

Sanitary

Inspector

Municipal

Health Officer

Environment

Engineer

Chief Town

Planner

Town Planning

Officer

Estate &

Survey

Deputy Municipal

Commissioner –Budget, Finance & A/Cs, Election &

Census

Accounts

Officer

Budget &

Finance Officer

Finance

Executive

Deputy Municipal

Commissioner – General

Administration

Deputy

Municipal Commissioner – Grievance Redressal, RTIPRO & Public

Disclosure

Head – Legal

Cell

Superintendent

Engineer

Executive

Engineer

Public Private

Partnership Officer

Contracts

OfficerRevenue

Officer

Deputy Municipal Commissioner –

Revenue & IT

Reference: Report of Working Group on Capacity Building, September 2011 - Urban Development Management for the formulation of the Twelfth Five Year Plan (2012-17)

- 9 -

Annexure-4: Stakeholders Meeting held in ECMC ON 08-04-2013

The City Development Plan is a tool which adapts a corporate approach to plan and

implement projects in a participatory mechanism involving users, elected councillors,

line agencies, private organizations, NGOs and CBOs. The broad purpose of stake

holders’ participation is to involve the stakeholders in the development plan for the city.

In this process, residents of various sections of the communities in the city were enquired

into at random during surveys and visits to the sites and also otherwise suggested by the

elders.

This plan focuses largely on urban infrastructure and other projects to adequately meet

the present and future demands of the growing city. At the initial stage, the Councillors,

the Mayor and the Corporation Officials were individually discussed with. The

Consultant gathered information on local and city level requirements relating to

municipal services and other on-going and proposed projects. As a second step, a public

consultation meeting was arranged and the details are as below:

Minutes of the Stake holder’s meeting

The stakeholder’s meeting was organised at the Conference Hall of the Corporation

office building on April 08, 2013.

The meeting was chaired by the Honorable Mayor Mrs. P. Mallika Paramasivam, Erode

City Municipal Corporation. The meeting was attended by representatives from various

line departments of government of Tamilnadu (Agriculture, Highways, Forest, Slum

etc.), local traders, representatives of CII, community welfare organizations and NGOs

besides City councillors and Corporation officials.

The meeting started with a presentation by UMC Global on the existing scenarios, salient

points under CDP preparation, problems faced, constraint for development of the city

etc. The stakeholders have been invariably very co-operative and practical about the

needs of the city at local and regional levels.



Brief summary of the discussions:

Industrial Infrastructure

Explore the opportunities for developing drivers of the economy in Erode

Textiles (Loom city started exporting in 1769)

Agriculture (7th position in the state in agriculture)

Leather

Need for developing Industrial Infrastructure to create more opportunities for industrial

growth.

There are 18000 small scale industries in and around Erode city.

Need for an integrated turmeric marketing complex

Processing of value added products (oleoresin, Drumstick powder, jasmine extract)

Development of Cold storage facilities for products like banana, floriculture

Food processing Industries under PPP.

Industrial Estates

Proposals for agro-market

Horticulture Park at Perudurai

Leather Park

Textile/ Leather industry suffers from the lack of effluent treatment facilities. The

discharge is to the tune of 150 mld – Setting up of common effluent treatment plant

to be explored.

Power Sector

Extensive use of charcoal by theses industries lead to erosion of forests.

Tapping of solar energy and wind energy need to be a part of the development

programme.

Traffic and Transportation

To reduce traffic congestion in the inner city some of the activities may shifted –

office complexes may be constructed in the newly expanded area, satellite city may

be developed.

Ring road, bridges, fly-overs should be done to reduce the inner city congestion and

easy flow of traffic.

Improved transportation system and better road infrastructures should be included in

the plan.

Modern Bus Terminal at Solar through PPP

Implementation of proposed Ring Roads for Erode City to deviate traffic

Airport for Erode

Water supply, Sewerage and SWM

Water supply, Solid Waste Management and Sanitation are the priorities.

Rehabilitation of the existing network, creating required network in the merged areas

and new water supply scheme to carter the demand are crucial.

Integrated Underground Sewerage Scheme



Others

Recreational / Entertainment Facility: Indoor stadium, Theme Park

There are 52 engineering colleges in and around Erode: Developing IT hubs is worth

considering

E-governance – with linkage between municipal corporation and educational

institutional

Action taken

The final report covered the all aspects of infrastructure and put more emphasis on economic

development of the city. Please refer chapter no. 7.



Signatures of stakeholders meeting held in ECMC on 8-04-2013



Annexure-5 Minutes of Meeting held in ECMC on 24-06-2013



Action Taken

Rechecked the collection (%) of solid waste and updated in page no. 28.

Rechecked the debt servicing ration for the year 2011-12 and 2013.

Confirmed the number of slum households in CM nagar through TNSCB

officials.



Annexure -6: Mom of draft final report held in TNUIFSL on 17-7-2013



Action taken

Main points taken Action Taken

Restoration of water bodies, energy

efficiency audit/measures, GIS shall be

incorporated

The draft final report already covered the

energy efficiency / audit measures & water

audit. It also covered the new technology

like GIS as a part of capacity building

measures. Restoration of water bodies is

considered as part of Revised Draft, which

shall be integrated with state level actions.

CIP/FOP to be worked out for 30 years;

Categorize short, medium & long term

projects; Consider the ongoing/proposed

projects by ULB

FOP has been prepared for 30 years

horizon in Revised Draft; Capital Projects

have been identified in categories of Short

term, Medium term and Long term;

Ongoing/ proposed projects by ULB have

also been considered.

Firm up gap analysis to ascertain

needs/requirements

The Gap Analysis (based on existing and

future requirement) have been assessed,

based on which the projects required for

Short, Medium and Long term have been

identified.

Include Health, Tourism, Green urban

spaces, Rain water harvesting, traffic &

transportation projects

Parks-Playgrounds, Traffic &

Transportation projects have been duly

covered in Draft report. Tourism projects,

Health and Education facilities have been

incorporated in Revised Draft.

Study the Hon. Supreme Court order

related to tanneries, and interventions

proposed for Erode in Vision 2023

The order of Hon. Supreme Court have

been reviewed and briefly presented in

Revised Draft. Requirements and Vision

for Erode have been formulated through

Stakeholders participation.

Comply to revised JNNURM tool-kit for

CDP preparation

The crucial aspects of revised tool-kit as

suggested by TNUIFSL which has

relevance for Erode have been covered.



Annexure-7: MoM of revised draft meeting held in TNUIFSL on 11-09-13



Action Taken

Main point Action Taken

Requested to check the cost of all

proposed projects in the CDP(all

sectors) along with ECMC officials

Discussed with ECMC officials and

worked out the cost for all proposed

projects.



Annexure-8: MoM of Technical Committee meeting held in ECMC on 11-10-2013

In the Chair: Mrs. M. Vijayalakshmi, Commissioner, Erode City Municipal Corporation

Members present:

Mrs. M.Shanmugavadivu, AEE/Asst. Commissioner(I/c) Zone-I

Mr. V.T. Ashokkumar, AEE/Asst. Commissioner(I/c) Zone-II

Mr. T.Vijayakumar, AEE/Asst. Commissioner(I/c) Zone-IV

Mr. Vivek Parekh, Assistant Manager – Urban Planning, UMC Global, Ahmedabad

Mr. Dharmesh Kalathia, Assistant Manger – Urban Planning, UMC Global, Ahmedabad

Mr. Raja Ganapthi, Urban Planner, UMC Global, Ahmedabad

Mr. Thanish Yadav, Urban Planner, UMC Global, Ahmedabad

At the outset Mrs. M. Vijayalakshmi, Commissioner, Erode City Municipal Corporation

welcomed all the members for the Technical Committee Meeting.

Mr. Vivek Parekh, Assistant Manager, UMC Global, welcoming the guests and made a

detailed power point presentation on the final report on the assignment for preparation of city

development plan for Expanded Erode City Municipal Corporation.

Following are the discussion points:

The consultants explained the city profile, connectivity, growth scenario, population

projection, existing scenario, municipal finance, infrastructure strategy and financial

operating plan, etc.

The consultant explained the assessment and analysis of city on existing situation.

The consultant explained in detail about water supply, sewerage & sanitation, solid waste

management, Roads & Transportation projects existing situation, issues and strategies,

gaps and requirements & projects to be implemented and ongoing projects.

The consultant explained in details on slum & urban poor projects identification and cost

estimation.

The consultants explained urban governance & technical assistance requirements for

corporation in detail.

The consultants explained urban environment existing situation, proposed capital projects

and requirements.

The consultants explained in detail on street lighting, tourism & heritage projects.

The consultants explained social amenities, education, commercial and industrial

infrastructure projects.

The consultants explained capacity building & institutional mechanism in detail.

The consultants explained in detail on municipal finance, financial indicators, and SWOT

analysis and vision strategies of corporation.

The consultants explained in detail on capital investment plan requirement up to medium

term and priority of investments and financial operating plan.



Following are the brief suggestions made during the meeting:

In FOP the amount allotted for Tourism and Heritage need to be revised (10% increase for

every year).

Separate storage and warehousing area project should be incorporated in final CDP. This

project may implement through PPP Mode.

(sd)M.VIJAYALAKSHMI

Commissioner

Erode City Municipal

Corporation



Action Taken


In FOP the amount allotted for

tourism and heritage need to be

revised.

Revised with 10% increase of the cost

every year.



Annexure-9: MoM of standing committee held in ECMC on 11-10-2013

Minutes of Standing committee Meeting held in Commissioner’s conference hall in Erode

City Municipal Corporation office, Erode at 02:00 pm on 11-10-2013

In the Chair Worshipful Mayor: Mrs. P. Mallika Paramasivam

Special Invitee: Respectful Deputy Mayor Mr K.C.Palanisamy

Members present:

Mrs. M. Vijayalakshmi, Commissioner

Mr P.Kesavamoorthi, Zonal Chairman, Zone-II

Mr R.Manokaran, Zonal Chairman, Zone-III

Mrs. P.Kanjana, Zonal Chairman, Zone-IV

Mrs.M.Shanmugavadivu, AEE/Asst. Commissioner(I/c) Zone-I

Mr. V.T.Ashokkumar, AEE/Asst. Commissioner(I/c) Zone-II


Mr A.Subramanian, Exe.Engineer (Urban),TNEB, Erode

Mr. R.Shanmugasundaram, AEE (Central), TNEB, Erode

Mr. Senthilkumar, ADO, Fire and Rescue Dept, Erode

Mr. N.Sivanesan, President, Federation of All trade and Industrials Association, Erode

Mr V.K.Rajamanicakam, Secretary, Federation of All trade and Industrials Association,

Erode

Mr G.Krishnamoorthi, Treasurer, Erode Bus owner Association, Erode

Mr. K.Natchimuthu, President, Erode Lorry owner Association, Erode





At the outset, V.T.Ashokkumar, Asst Commissioner, Zone-II, Erode City

Municipal Corporation welcomed all the members for the Standing committee

meeting.

Mr. Vivek Parekh, Assistant Manager, UMC Global, welcoming the guests and made a detailed

power point presentation on the final report on the assignment for preparation of city development

plan for Expanded Erode City Municipal Corporation.


The consultants explained the city profile, connectivity, growth scenario, population

projection, existing scenario, municipal finance, infrastructure strategy and financial

operating plan, etc.


The consultant explained in detail about water supply, sewerage & sanitation, solid waste

management, Roads & Transportation projects existing situation, issues and strategies,

gaps and requirements & projects to be implemented and ongoing projects.

The consultant explained in details on slum & urban poor projects identification and cost

estimation.

The consultants explained urban governance & technical assistance requirements for

corporation in detail.



The consultants explained urban environment existing situation, proposed capital projects

and requirements.





The consultants explained in detail on municipal finance, financial indicators, and SWOT

analysis and vision strategies of corporation.

The consultants explained in detail on capital investment plan requirement up to medium

term and priority of investments and financial operating plan.


The clarification was asked between public toilets and community toilets.

Swastik Junction development project should be incorporated in short term of FOP.

Bhavani Road should be added in one important roads of the city.

The separate space should be allotted for hawkers and vendors in final CDP.

The consultants were instructed to submit the final report after incorporating the comments and

suggestions made by the standing committee members.

(sd)M.VIJAYALAKSHMI

Commissioner


Corporation



Action Taken


Clarification was asked between

public toilets and community toilets

Clarified

Swastik Junction development

project should be incorporated in

short term of FOP.

Bhavani Road should be added in

one important roads of the city.

Incorporated as per their suggestion



Annexure-10: MoM of Stakeholders meeting held in ECMC on 11-10-2013

Minutes of the Stake holders Meeting held in Commissioner’s conference hall in

Erode City Municipal Corporation office, Erode at 04:30 pm on 11-10-2013

In the Chair Worshipful Mayor Mrs. P. Mallika Paramasivam

Special Invite:- Respectful Deputy Mayor Mr K.C.Palanisamy

Members present:

Mrs. M. Vijayalakshmi, Commissioner

Mr P.Kesavamoorthi, Zonal Chairman, Zone-II

Mr R.Manokaran, Zonal Chairman, Zone-III

Mrs. P.Kanjana, Zonal Chairman, Zone-IV

Mrs.M.Shanmugavadivu, AEE/Asst. Commissioner(I/c) Zone-I

Mr. V.T.Ashokkumar, AEE/Asst. Commissioner(I/c) Zone-II


Mr A.Subramanian, Exe.Engineer (Urban),TNEB, Erode

Mr. R.Shanmugasundaram, AEE (Central), TNEB, Erode

Mr. Senthilkumar, ADO, Fire and Rescue Dept, Erode

Mr. N.Sivanesan, President, Federation of All trade and Industrials Association, Erode

Mr V.K.Rajamanicakam, Secretary, Federation of All trade and Industrials Association,

Erode

Mr G.Krishnamoorthi, Treasurer, Erode Bus owner Association, Erode

Mr. K.Natchimuthu, President, Erode Lorry owner Association, Erode





At the outset, V.T. Ashok kumar, Asst Commissioner, Zone-II, Erode City

Municipal Corporation welcomed all the members for the Stake holders Meeting.

Mr. Vivek Parekh, Assistant Manager, UMC Global, welcoming the guests and made a

detailed power point presentation on the final report on the assignment for preparation of

city development plan for Expanded Erode City Municipal Corporation.


The consultants explained the city profile, connectivity, growth scenario,

population projection, existing scenario, municipal finance, infrastructure strategy

and financial operating plan, etc.


The consultant explained in detail about water supply, sewerage & sanitation, solid

waste management, Roads & Transportation projects existing situation, issues and



strategies, gaps and requirements & projects to be implemented and ongoing

projects.

The consultant explained in details on slum & urban poor projects identification

and cost estimation.

The consultants explained urban governance & technical assistance requirements

for corporation in detail.

The consultants explained urban environment existing situation, proposed capital

projects and requirements.





The consultants explained in detail on municipal finance, financial indicators, and

SWOT analysis and vision strategies of corporation.

The consultants explained in detail on capital investment plan requirement up to

medium term and priority of investments and financial operating plan.


Separate storage and warehousing area project should be incorporated in final

CDP. This project may be implemented through PPP Mode.

The separate space should be allotted for hawkers and vendors in final CDP.

Common effluent treatment plant was demanded in industrial area of the city

corporation.

In FOP the amount allotted for Tourism and Heritage need to be revised.

The additional fire station demand was raised in meeting.

(sd)M.VIJAYALAKSHMI

Commissioner


Corporation



Action Taken


In FOP the amount allotted for

tourism and heritage need to be

revised.

Revised with 10% increase of the cost

every year.



Signatures of Stakeholders meeting held in ECMC on 11-10-2013



Annexure-11: Questioner for Vision Building Exercise

EXPANDED ERODE CITY CORPORATION: VISION EXERCISE

Please put a () in the correct answers

Name

Occupation

How would you like to see your City in the coming years?

Trade Centre

Agro-processing Centre

Industrial Hub

Logistic Hub


How to achieve the Vision?

Long Term (10 – 20 years)

Planned growth

Development of public amenities & infrastructure

Strong and well maintained road network

Sufficient green coverage

Environmentally safe city

Industrial area/zone to be established outside of city

Renewal of congested inner city areas (Periyar Street, Cuthery Road, Cauvery Road,

KNK Road etc.)


Mid Term (5 – 10 years)

Well maintained sewerage/drainage system

Regulated water supply

Strong road network

Strict enforcement of land use rules and regulations

Implement air quality monitoring and improvement program

Improve traffic through proper monitoring and equipment

Addressing the issued related to Slums

Affordable Housing


Short Term (1 – 5 years)

Clean city with safe drinking water

Regulated traffic

Parking requirements met

Garbage free city



Clear encroachments


What are the three critical challenges to implement the Vision

Rapid pace of urbanisation

Haphazard growth, encroachments in the extended areas

Lack of infrastructure & amenities

Environmental concerns (air, water, noise pollution)

Lack of funding

Lack of urban governance


What are the possible solutions to these challenges?

Long term vision and action oriented plan to reach the vision

Proper planning and enforcement of Government policies

Stakeholder input through public meetings

Better Housing options

Availability of funding


Strict compliance to rules and regulations

Proper training for personnel

Improvement to law & order


Thank You for your time



Annexure 11a - Vision building exercise conducted at ECMC on 8-4-2013



Annexure-12: Compliance with JnNURM Revised Toolkit (2nd

Revision – April 2013)

No. Topic Action

Taken

(Yes/No)

Comment

1 City Assessment Yes

1.1 Socio-Cultural & Economic Environment Yes

A Demographic Profile Yes

B Social & Cultural Environment Yes

C Economic Base Yes

1.2 Physical Environment Yes

A Physical Setting Yes

B Natural Resources Yes

C Baseline Environment Yes

D Cultural Resources Yes

1.3 Infrastructure and Services Yes

A Water Supply Yes

B Sewerage & Sanitation Yes

C Storm Water Drainage Yes

D Solid Waste Management Yes

E Urban Roads Yes

F Traffic & Transportation Yes

G Housing Yes

1.4 Cross Cutting Themes Yes

A Urban Poverty Yes

B Heritage Yes

1.5 Assessment of Institutions, Systems &

Capacities

Yes

1.6 Stakeholder Participation Yes

1.7 SWOT Analysis Yes

2 City Vision, Development Goals &

Strategies

Yes

A Vision Statement Yes

B Development Goals & Strategies Yes

C Operation & Maintenance Plan Yes

3 Sector Plans Yes

A Water Supply Yes

B Sewerage & Sanitation Yes

C Storm Water Drainage Yes

D Solid Waste Management Yes

E Comprehensive Mobility Plan - It is under preparation

by TNUIFSL

(Consultant – CDM

Smith)

F Housing & Basic Services for Urban Poor Yes



G Urban Environment Yes

H Cultural & Heritage Conservation Yes

I Local Economic Development Yes

J Preservation & Rejuvenation of Water Bodies Yes

K Capacity Building Yes

L Climate Change & Sustainable Development Yes

M E-Governance Yes

4 Financial Assessment & Financial

Operating Plan

Yes

- 67 -

Annexure-13: Land & Building Assets under ECMC

ERODE CITY MUNICIPAL CORPORATION

Total value of Assets of lands (General)

Sl.

No Survey No Location

Land owned/

Acquired/Purchased/ Extent Document Used as Rate/Sqm Total Value Present status of land

1 Ward-A, Block-14,

T.S.No.2/1 Sathy Road Acquired, 1951 - 52 42562.2 sq.m. -- Bus stand 10140 431580708 Commissioner, Erode Corporation

2 Ward-A, Block-14,

T.S.No.2/2 Sathy Road

Acquired for weekly

market 2644.1 sqm -- Bus stand 10140 26811174 Municipal Weekly Market

3 Ward-A, Block-1,

T.S.No.5 Krishnampalayam road owned 146.40 sqm -- Public latrine 4369 639622 Toilet

4 Ward-A, Block-3,

T.S.No.38 Krishnampalayam road Purchased 293.30 sqm -- School 1482 434670 Commissioner, Erode Corporation

5 Ward-A, Block-3,

T.S.No.39 Krishnampalayam road Alienated (1967) 1618.3 sqm -- School 1482 2398320 Municipal school

6 Ward-A, Block-14,

T.S.No.6 Nachiappa Street Purchased 376.6 sqm --

Kalyana

mandapam 6080 2289728 Commissioner, Erode Corporation

7 Ward-A, Block-14,

T.S.No.7 Nachiappa Street Owned 3753.9 sqm --

Kalyana


8 Ward-A, Block-14,


Kalyana


9 Ward-A, Block-14,


Kalyana


10 Ward-A, Block-3,

T.S.No.157 Krishnampalayam road Owned 122.0 sqm -- Well 1482 180804 Well

11 Ward-A, Block-6,

T.S.No.48 Thirunagar Colony Purchased 46.10 sqm --

Municipal vacant

site 4060 187166 Commissioner, Erode Corporation

12 Ward-A, Block-7,

T.S.No.28 Moolapattarai Owned 83.80 sqm -- Public Latrine 4370 366206 Toilet

13 Ward-A, Block-

9,T.S.No.89 Bhavani Road Purchased 9978.00 sqm -- V.O.C. Park 4076 40670328 Commissioner, Erode Corporation

14 Ward-A, Block-

9,T.S.No.98

Bhavani Road Purchased 34992.5 sq.m. -- V.O.C. Park 4076 14262943 Commissioner, Erode Corporation

15 Ward-A, Block-

9,T.S.No.104

Bhavani Road Purchased 72212.5 sq.m. -- V.O.C. Park 4076 294338150 Commissioner, Erode Corporation

16 Ward-A, Block-

17,T.S.No.25/1

Sait Colony Gifted 1085.9 sqm -- Kalyana

mandapam

4050 4397895 Commissioner, Erode Corporation

17 Ward-A, Block-25,T.S.No.97 Nasiannur road owned 1139.0 sqm -- Municipal school 5950 6777050 school

18 Ward-A, Block-A

17,T.S.No.25/2 Nachiappa Street

(selambaran kuttai) Bought onExchange 333.5 sqm -- Kalyana mandapam 4050 1350675 Secretary, Ilaingar kalvi nilayam

19 Ward-A, Block-

17,T.S.No.26/1 Nachiappa Street Purchased 4002.0 sqm -- Market 4050 16208100 Kuttai

20 Ward-B, Block-11,

T.S.No.21/1 Kalingaryan Bungalow 1122.70 sqm -- Municipal Over Head 9633 10814969 Municipal Tank



21 Ward-B, Block-12,

T.S.No.10/2 Kalingaryan Bungalow

Road 88.50 sqm Municipal Over Head

Tank 9633 852520 Municipal Over head Tank

22 Ward-B, Block-7, T.S.No.91 SKC Road Acquired (1960) 664.2 sqm Municipal school 4867 3232661 Commissioner, Erode Corporation

23 Ward-C, Block-2, T.S.No.51 Krishnampalayam Acquired (1966) 2445.7 sqm Vinayakar koil street,

Elementary school 1603 3920457 Commissioner, Erode Corporation

24 Ward-C, Block-4, T.S.No.55 Cauvery Road

(Karungalpalayam) Owned 1144.8 sqm -- S.I. Ward Office and

Maternity centre 2082 2383474 Municipal Maternity Home, Sanitary

Inspector office

25 Ward-C, Block-4, T.S.No.102 Cauvery Road, Owned 1861.9 sqm -- Thangaperumal Park 2082 3876476 Park

26 Ward-C , Block-7, T.S.No.58 Cauvery Road (K.N.K. Rd.

Jn.) Purchased 2462.40 sqm -- Municipal Girls' High

School 2556 6293895 Commissioner, Erode Corporation

27 Ward-C, Block-7, T.S.No.61 Cauvery Road (K.N.K. Purchsed 488.80 sqm -- Municipal Girls' High 2556 1249373 school

28 Ward-C, Block-14, T.S.No.34 Rajaj i Puram owned 4463.3 sqm Municipal School

Health Post and

scavengers colony


29 Ward-C, Block-14, T.S.No.3 Rajaji Puram owned 134.3 sqm Municipal School

Health Post and

scavengers colony


30 Ward-C, Block-15 T.S.No.31 Janaki Ammal Layout Owned 504.6 sqm -- Vacant Land

Encorched to be

evicted


31 Ward-C, Block-15 T.S.No.129 Cauvery Road Acquired (1961) 618.8 sqm -- Kamarajar Mpl. High

school 5273 3262933 Commissioner, Erode Corporation

32 Ward-C Block-15 T.S.No.130 Cauvery Road Acquired (1961) 24726.2 sq.m. -- Kamarajar High

school 5273 24921252 Commissioner, Erode Corporation

33 Ward-C Block-26 T.S.No.63 Akilmedu Street owned 55.5 sqm -- Market 4474 248307 Commissioner, Erode Corporation

34 Ward-C Block-26 T.S.No.65 Akilmedu Street Owned 1249.7 sqm -- Market 4474 5591158 Commissioner, Erode Corporation

35 Ward-C Block-34 T.S.No.39 Brough Road Owned 9584.4 sqm -- Municipal Office 10413 99802357 Commissioner, Erode Corporation

36 Ward-C Block-34 T.S.No.40 Brough Road Owned 149.10 sqm -- Municipal Office 10413 1552578 Municipal Office

37 Ward-C Block-35 T.S.No.84 Brough Road Purchased in 1964 12074.7 -- Gani Market (cloth

market) 11175 134934773 Hand loom shop

38 Ward-C, Block-36, T.S.No.69 Brough Road Alienated 48.0 sqm -- Reading Room 12484 599232 Reading room

39 Ward-C, Block-36, T.S.No.70 Brough Road Alienated 274.3 sqm -- Reading Room 12484 3424362 Reading room

40 Ward-C, Block-36, T.S.No.71 Brough Road Alienated 1793.5 sqm -- Town School 12484 22390054 school

41 Ward-C, Block-36, T.S.No.72 -do- Alienated 317.7 sqm -- Town school 12484 3966167 school

42 Ward-C Block-38 T.S.No.61 Kachery Road (Brough Alienated 448.80 sqm -- Panneer selvam park 12484 5602820 Park

43 Ward-C Block-38 T.S.No.62 Kachery Road (Brough Alienated 271.4 sqm -- Panneer selvam park 12484 3388158 Park

44 Ward-D Block-26 T.S.No.78 Keeraikara Street (Agathian

street) Gifted 306.7 sqm Doc.No.1164/7

3 S.I. Ward Office and

Mat.centre 3884 1191223 Encroached by 41.10 m2 Tiled and RCC

roof building

45 Ward-D Block-10 T.S.No.61 Periya Mariamman Koil Alienated (1971 & 2077.5 sqm -- Municipal school 1865 3874537.5 school

46 Ward-D, Block-15, T.S.No.2 R.K.V. Road Alienated 2029.0 sqm -- Thiru. Vi. Ka. Poonga 9318 18906222 Park

47 Ward-D, Block-15, T.S.No.4 Nethaji Road Alienated 480.6 sqm -- Daily Market 10885 5231331 Busstand

48 Ward-D, Block-15, T.S.No.5 Nethaji Road Alienated 10033.6 sq.m. -- Daily Market 10885 109215736 Shandy

49 Ward-D, Block-15, T.S.No.14 Cauvery Road Owned 78.3 sqm -- S.I. Ward Office 6988 547161 Commissioner, Erode Corporation

50 Ward-D, Block-15, T.S.No.15 Cauvery Road Acquired 3079.8 sqm -- Daily Market 6988 21521643 Shandy

51 Ward-D, Block-17, T.S.No.113 Valayakara street 1071.3 sqm municipal elementary

school (cement

school)


52 Ward-D, Block-19, T.S.No.66 Cutchery street owned 136.3 sqm municipal elementary 621 846423 school

53 Ward-D, Block-19, T.S.No.67 Cutchery street owned 1429.0 sqm Municipal elementary 6210 8874090 school

54 Ward-D, Block-20,

T.S.No.103 Mandapam Street Owned 4.9 sqm -- Public Latrine 4660 22834 Toilet

55 Ward-D, Block-24,

T.S.No.1118 Kuppupalayam street owned 2.80 sqm Well 2178 6098.4 Well



56 Ward-E Block-2 T.S.No.1 S.K.C. Road Owned 332.1 sqm -- S.I. Ward Office and

Mat.centre 4867 1616331 Commissioner, Erode Corporation

57 Ward-E Block-2 T.S.No.2 S.K.C. Road Owned 219.4 sqm -- S.I. Ward Office and

Mat.centre 4867 1067820 Commissioner, Erode Corporation

58 Ward-E Block-3 T.S.No.9 Gandhiji Road Owned 320.0 sqm -- S.I. Ward Office 8157 2610240 Sanitary Inspector ward office

59 Ward-E Block-4 T.S.No.16 Gandhiji Road Owned 4408.2 sqm -- Mpl. Mat. Centre 8157 33957688 children's Hostel

60 Ward-E Block-9 T.S.No.6 Kutchery Street (Opp

court) Owned 785.4 sqm -- School 4567 3586922 Commissioner, Erode Corporation

61 Ward-E Block-11, T.S.No.11 Nethaji Road Acquired (1915) 4577.3 sqm -- Municipal scavengers

colony 3768 17247266 Municipal scavengers colony



63 Ward-E Block-11, T.S.No.13 Nethaji Road Acquired (1915) 286.80 sqm Municipal scavengers














70 Ward-E Block-25, T.S.No.54 Karur Road Acquired 2783.8 sqm -- Commissioner, MHO,

Enginneer

quarters&rest house

8157 22707457 chairman municipal council, erode

71 Ward-E Block-25, T.S.No.55 Karur Road Acquired 2605.5 sqm -- Municipal school 8157 21253063.5 chairman municipal council, erode

72 Ward-E Block-28, T.S.No.2 Karur Road Acquired (1966) 20802 sqm (5AC

6116 sq ft) -- Railway Colony Mpl

high school 4080 84872160

73 Ward-E Block-10, T.S.No.120 Nethaji Road Owned 397.0 sqm -- Hemmingway market 3832 1521304 Commissioner, Erode Corporation

74 Ward-E Block-10, T.S.No.121 Nethaji Road Owned 61.1 sqm -- Hemmingway market 3832 234136 Commissioner, Erode Corporation

75 Ward-E Block-16, T.S.No.17 Jeevanandam road Owned 63.0 sqm -- Municipal scavengers

colony 4087 257481 Commissioner, Erode Corporation

76 Ward-E Block-16, T.S.No.18 Jeevanandam road Owned 1008.0 sqm -- Municipal scavengers

colony 4087 4119696 Commissioner, Erode Corporation

77 Ward-E Block-16, T.S.No.93 Jeevanandam road Alienated 5.0 sqm -- Road Margin 4087 20435 Commissioner, Erode Corporation

78 Ward-E Block-16, T.S.No.8 Jeevanandam road Acquired (July 1962) 480.5 sqm -- Slaughter house 4087 1963804 Commissioner, Erode Corporation

79 Ward-E Block-20, T.S.No.3 State Bank Road Owned 122.5 sqm -- Bath & Lat 3142 384895 bath & toilet building

80 Ward-E Block-20, T.S.No.106 Nethaji Road Owned 349.4 sqm -- Ayurvedic dispensary 3142 1097815 Commissioner, Erode Corporation

81 Ward-E Block-22, T.S.No.56 Chidambaram colony owned 202.1 sqm over head tank 2679 541425 over head tank

82 Ward-E Block-22, T.S.No.56 SKC Road Gifted 202.1 sqm 1986/62 of

Register office, Well and Open 5716 1155203.6 over head tank

83 S.F.No.1304 erode village C Kasipalayam Owned 75000 sq.m. -- Compost Yard 393 29475000 Commissioner, Erode Corporation

84 S.F.No.11/1 Lakkapuram Owned 51900 sq.m. -- Sewage Farm Rs.10/sqm

(41100/ac)

519000 Commissioner, Erode Corporation



85 S.F.No.11/2 Lakkapuram Owned 115000 sqm. -- Sewage Farm Rs.10/sqm

(41100/ac) 1150000 Commissioner, Erode Corporation

86 S.F.No.11/3 Lakkapuram Owned 41200 sq.m. -- Sewage Farm Rs.22/sqm

(86100/ac) 906400 Commissioner, Erode Corporation

87 S.F.No.33/2&3, 34,38,43/1&3,

44/1&2 and 45/1&2 Vairapalayam owned 2.53 acres Headworks and

quarters 481712 Commissioner, Erode Corporation

88

S.F.No.12, 13, 5/4, 5/5,14/1B,

29/2,30/1, 30/2,, 31/2B Sarkar Chinna Agraharam Owned 32700 sq.m. -- Burial Ground Rs.32/sqm

(106400/a

c)

1046400 Commissioner, Erode Corporation

89 R.S.No.102 & 103 Erode

Village Municipal Colony Owned 581.0 sqm -- Municipal Officers

Quarters 1958 1137598 Commissioner, Erode Corporation

90 R.S.No.102 & 103 Erode

Village Municipal Colony Owned 1202.0 sqm -- Children's Play

ground 1958 2353516 Commissioner, Erode Corporation

91 R.S.No.102 & 103 Erode

Village Municipal Colony Owned 802.0 sqm -- Open Space 1958 1570316 Commissioner, Erode Corporation

92 R.S.No.102 & 103 Erode

Village Municipal Colony Owned 427.0 sqm -- Nursery School 1958 836066 Commissioner, Erode Corporation

93 R.S.No.102 & 103 Erode

Village Municipal Colony Owned 111.0 sqm -- Noon Meal 1958 217338 Commissioner, Erode Corporation

94 Ward-E Block-23, T.S.No.2/1 Periyar Nagar Reserved land Taken over

on 25.6.1990 0.40.26.8.sqm L.A.II- 6088/80 dt

25.06.1990

Housing unit,

Park TAMIL NADU HOUSING UNIT

95 Ward-E Block-23, T.S.No.2/1 Periyar Nagar Reserved land Taken over

on 25.6.1990 0.0331.0.sqm L.A.II- 6088/80 dt

25.06.1990

Housing unit,

Well open TAMIL NADU HOUSING UNIT

96 Ward-E Block-23, T.S.No.2/1,

block -21, T.S.NO.6/1 Periyar Nagar Reserved land Taken over

on 25.6.1990 0.3129.7 sqm L.A.II- 6088/80 dt

25.06.1990

Housing unit,


97 Ward-E, Block-21. T.S.No.7 Periyar Nagar Reserved land Taken over

on 25.6.1990 0.0351.4 sqm L.A.II- 6088/80 dt

25.06.1990

Housing unit,

Open TAMIL NADU HOUSING UNIT

98 Ward-E, Block-23. T.S.No.2/1 Periyar Nagar Reserved land Taken over

on 25.6.1990 0.2203.9 sqm L.A.II- 6088/80 dt

25.06.1990

Housing unit,

Sewage disposal TAMIL NADU HOUSING UNIT


on 25.6.1990 0.0551.80 L.A.II- 6088/80 dt

25.06.1990

Housing unit,

Well and Open space TAMIL NADU HOUSING UNIT


on 25.6.1990 0.0181.4 L.A.II- 6088/80 dt

25.06.1990

Housing unit,

Park and open space TAMIL NADU HOUSING UNIT


on 25.6.1990 0.0520.5 sqm L.A.II- 6088/80 dt

25.06.1990

Housing unit,


102

Ward-E, Block-23. T.S.No.2/1 Periyar Nagar Reserved land Taken over

on 25.6.1990 0.0520.5

sqm,0.1041.0

sqm

L.A.II- 6088/80 dt

25.06.1990

Housing unit,


103 Ward-B, Block-27. T.S.No.3 Periyar Nagar Reserved land Taken over

on 25.6.1990 0.0499.8 sqm L.A.II- 6088/80 dt

25.06.1990

Housing unit,

Park PRESIDENT, TAMIL NADU HOUSING

UNIT


on 25.6.1990 0.0142.8 sqm L.A.II- 6088/80 dt

25.06.1990

Housing unit,

sump (guest house) PRESIDENT, TAMIL NADU HOUSING

UNIT

105 Ward-E, Block-21. T.S.No.6/1 Periyar Nagar Reserved land Taken over 0.3538.4 L.A.II- 6088/80 dt Temple land PRESIDENT, TAMIL NADU HOUSING



on 25.6.1990 25.06.1990

Housing unit, UNIT


on 25.6.1990 0.0335.9 sqm L.A.II- 6088/80 dt

25.06.1990

Housing unit,

Open PRESIDENT, TAMIL NADU HOUSING

UNIT


on 25.6.1990 0.1724.7 sqm L.A.II- 6088/80 dt

25.06.1990

Housing unit,

park PRESIDENT, TAMIL NADU HOUSING

UNIT

108

Ward-E, Block-21. T.S.No.6/1 Periyar Nagar Reserved land Taken over

on 25.6.1990 0.0100.0 sqm L.A.II- 6088/80 dt

25.06.1990

Housing unit,

Erode

Open PRESIDENT, TAMIL NADU HOUSING

UNIT

109

Ward-E, Block-21. T.S.No.7 Periyar Nagar Reserved land Taken over

on 25.6.1990 0.0325.3 sqm L.A.II- 6088/80 dt

25.06.1990

Housing unit,

Erode

open PRESIDENT, TAMIL NADU HOUSING

UNIT

110

Ward-B, Block-27. T.S.No.1 Periyar Nagar Reserved land Taken over

on 25.6.1990 0.0130.8 sqm L.A.II- 6088/80 dt

25.06.1990

Housing unit,

Erode

open PRESIDENT, TAMIL NADU HOUSING

UNIT

111 S.F.NO.8/2 Sarkar Chinna Agraharam GIFT 0.15.5 Electrical

crematorium Commissioner, Erode Corporation

112 S.F.NO.8/4 Sarkar Chinna Agraharam GIFT 0.22.5 Electrical


113 S.F.NO.8/3 Sarkar Chinna Agraharam OWNED 0.19.0 Electrical


- 72 -

Annexure-14: Annual Rateable Value

Property Zonal Basic Value Details – Built Property

S.No. Name of Erstwhile Municipality /

Village Panchayat

A Zone B Zone C Zone D Zone

1 Erode Corporation (Erstwhile

Municipality)

2.60 2.10 1.60 1.10

2 Veerappan Chatram 3rd

Grade

Municipality

1.50 1.20 0.90 0.30

3 Suram Patti 3rd

Grade Municipality 1.50 1.20 0.90 -

4 Kasi Palayam 3rd


5 Periya Samur 3rd


6 B.P Agraharam Town Panchayat 0.90 0.70 0.50 -

7 Suriam Palayam Town Panchayat 0.80 0.60 0.40 -

8 Muthamapalayam Village Panchayat 1.00 - - -

9 Ellapalayam Village Panchayat 0.25 - - -

10 Velarasam Patti Village Panchayat 0.40 - - -

11 Kangapuram Village Panchayat 0.25 - - -

12 Dhindal Village Panchayat 0.40 - - -

Zonal Basic Value Details – Vacant Land

S.No. Name of Erstwhile Municipality /

Village Panchayat

A Zone B Zone C Zone D Zone

1 Erode Corporation (Erstwhile

Municipality)

0.60 0.50 0.40 0.40

2 Veerappan Chatram 3rd

Grade

Municipality

0.40 0.30 0.20 -

3 Suram Patti 3rd


4 Kasi Palayam 3rd


5 Periya Samur 3rd


6 B.P Agraharam Town Panchayat 0.20 0.20 0.10 -

7 Suriam Palayam Town Panchayat 0.20 0.20 0.20 -

8 Muthamapalayam Village Panchayat 0.10 - - -

9 Ellapalayam Village Panchayat 0.10 - - -

10 Velarasam Patti Village Panchayat 0.10 - - -

11 Kangapuram Village Panchayat 0.10 - - -

12 Dhindal Village Panchayat 0.10 - - -

Draft Final Report – CDP for Expanded Erode City


Annexure-15: Newspaper clippings on Erode City Development Plan

for expanded city municipal corporationerodecorporation.gov.in/pdf/erode cdp.pdf‘dedicated water...

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