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Municipal Finance

Corporation receives Rs 689 lakh under urban mission

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The New Indian Express          23.09.2013

Corporation receives Rs 689 lakh under urban mission

Vellore Corporation has received a fund of Rs 689 lakh under the Integrated Urban Development Mission (IUDM) for the year 2013-2014 from the Commissionerate of Municipal Administration (CMA).

The CMA also listed various developmental work to be carried with the allotted fund. Accordingly, `104 lakh was allotted for the implementation of Solid Waste Management Scheme by the Corporation. The local body will contribute Rs 6 lakh for the scheme from its general fund.

In addition to this, Rs 200 lakh has been sanctioned for road work while Rs 35 lakh has been allocated for drinking water facilities. This  amount has been redirected to pay a loan which was borrowed by the Corporation for the  Cauvery Integrated Drinking Water Scheme in the city.

The remaining Rs 350 lakh would be  used for the maintanance of streetlights.


Rs.70-crore drinking water project for Dindigul

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The Hindu               19.09.2013

Rs.70-crore drinking water project for Dindigul

The Dindigul Municipality will spend Rs.70 crore to augment drinking water supply to Dindigul town. To meet its expenses, it will revise domestic and commercial water tax and deposit amount for new water connection.

Elaborating on the new project at the Municipal Council meeting here on Wednesday, Council Chairman V. Marudha Raj said present drinking water requirement of the municipality was 28 million litres a day (MLD), but the supply from Athoor Kamarajar dam and Cauvery Combined Drinking Water Project was just 14 MLD.

With this supply, the municipality could supply water to residents only once in a week. Kamarajar dam had also been feeding 17 wayside villages and Chinnalapatti town. In future, requirement of wayside villages and Chinnalapatti would be around 26 MLD, he said.

Of the total project cost, Japan International Co-operation Agency will contribute Rs.35.10 crore, including a grant of Rs.14.10 crore, Tamil Nadu Urban Infrastructure Project share Rs.28.20 crore and the local body contribution Rs.7.05 crore.

To meet its expenses, the municipality proposed to increase water tax from Rs.45 to Rs.280 for domestic water connections and to Rs.560 for other connections. Similarly, deposit for domestic water connection will be revised to Rs.10,000 and for commercial connection Rs.20,000, he pointed out.


The DMK Councillors staged a walkout from the Council meeting over the proposed hike in water charges, stating that it would affect all sections of the people. The municipality could not supply drinking water to wards even once in eight days.

Then how could we accept upward revision of charges, they asked.

DMK Councillor M. Mohammad Rafeek said the revision of water tax should not exceed Rs.80 for domestic connection. Other DMK Councillors, K. Azhagarsamy and S. Rajappa, too supported him.

Later talking to media persons, the Chairman said the municipality would revise the tax to Rs.150 for domestic connection and Rs.560 for other connections. It would come into force only after the implementation of the project, he added.


Corporation may tap foreign funds

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The Hindu                    11.03.2013

Corporation may tap foreign funds

Coimbatore Corporation may tap foreign funds to take up big infrastructure projects. After getting approval from the State Government, the Corporation may approach the funding agencies such as the World Bank or Japan International Cooperation Agency for funds to implement the schemes scheduled under the proposed Jawaharlal Nehru National Urban Renewal Mission II.

The civic body’s thinking was impacted by the Union Budget, where no mention was made of JNNURM II.

The Corporation sources said that the thinking had to do with the Union Government not allocating adequate funds or prioritising the Jawaharlal Nehru National Urban Renewal Mission II - something the Corporation had pinned hopes on for implementing a few schemes. Those include the 24 x 7 drinking water supply scheme for the old city areas, second phase of the storm water drain project and the scheme to clean the tanks in the city.

The sources said that the Corporation was confident of tapping funds from the agencies as it enjoyed robust financial health. This was notwithstanding the deficit budget the Mayor S.M. Velusamy was likely to present on March 14.

Sources added that the ensuing financial year’s budget would be the second deficit budget for the present dispensation. In the last budget, the Corporation had Rs. 27.70-crore in deficit.

This was on account of the increase in capital expenditure.

The deficit for the coming financial year is likely to cross Rs. 30 crore.

And if it is so, it will be notwithstanding the increase in non-tax revenue – revenue from shops and other establishments. For, in the last few months, the Corporation had revised upwards the rents for establishments.

For those establishments whose rents were fixed nine years ago, the Corporation completely fixed a new rate that reflected the current market value.

The sources said this year, the Corporation was focussing not on big budget schemes but those that the civic body will find it easy to implement. And also schemes that will make a difference.

The sources said that the focus will be on education, women’s empowerment and basic sanitation.


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