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Municipal Finance

Corpn. pins hopes on funding from Centre

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The Hindu                    28.02.2013

Corpn. pins hopes on funding from Centre

Karthik Madhavan 

Just as anybody else the Coimbatore Corporation also eagerly awaits the Union Budget, to be presented by Union Finance Minister P. Chidambaram on Thursday.

The reason for the wait is not difficult to fathom – the Corporation expects the Minister to announce the second part of the urban infrastructure development scheme, in other words, the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) II.

At stake for the civic body are schemes worth Rs. 1,880 crore. According to Commissioner in-charge S. Sivarasu the civic body had sought funds for the second phase of the storm water drain project, cleaning the natural drains that criss-cross the city, improving the eight water tanks and the 24x7 drinking water supply scheme.

The Corporation has placed a demand of Rs. 490 crore to the Central Government to construct storm water drains measuring 1,482 km in 81 zones. It has sought Rs. 500 crore to improve Sanganur Pallam, Ganapathy-Singanallur Drain, Vilankurichi Drain, Karupparayan Kovil Drain and the Kovilmedu Drain.

The civic body has submitted a proposal for Rs. 200 crore to clean the eight water tanks that fall within the city limits.

And, another Rs. 690 crore to supply water round-the-clock to the residents of the old city area (60 wards).

If Mr. Chidambaram were to announce the scheme and allocate money for the same, it would take the city to the next level of development. Coimbatore had gained in infrastructure from the first JNNURM scheme in that it was able to implement the Pilloor Dedicated Drinking Water Supply Scheme, solid waste management scheme, underground drainage scheme and the storm water drainage in a part of the city.

It was to have taken up the tanks cleaning project as well but could not do so for a variety of reasons.

Mr. Sivarasu says that the Corporation is confident of securing funds from the government. But his optimism appears misplaced if media reports are anything to go by. The reports say that the Minister may cut spending to focus on reducing the budget deficit and ensuring fiscal discipline.

Last Updated on Thursday, 28 February 2013 06:59
 

Corpn. seeks fund from Government

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The Hindu                          15.02.2013

Corpn. seeks fund from Government

Staff Reporter 

To repair the roads damaged during the execution of the underground drainage work, the Coimbatore Corporation has sought funds from the State Government.

According to Commissioner in-charge S. Sivarasu, the Corporation has sought Rs. 86.52 crore from the Government for taking road works for 227 km. The works include 121.8 km roads that were damaged during the UGD work. The civic body has sought Rs. 50.80 crore. This was in November 2012.

To take up repair of roads in added areas, the civic body has sought Rs. 20 crore, which it will utilise for re-laying 70.07 km roads. This was in December 2012. And this month, the Corporation has asked for an additional Rs. 15.44 crore to repair 35 km roads.

The Corporation is hopeful of getting the money from the Government as a grant under the Integrated Urban Development Mission or as soft loan.

Chief Minister Jayalalithaa had allocated Rs. 750 crore for infrastructure development under the IUDM scheme and this has come as a blessing for the civic body, he says.

The Corporation with funds - Rs. 52 crore - from the State Government and its own resources has so far repaired 175 km roads and most of those are the ones damaged during UGD execution.

Last Updated on Friday, 15 February 2013 07:31
 

Civic body aims to plug revenue leaks

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The Hindu       23.02.2012

Civic body aims to plug revenue leaks

Karthik Madhavan

In a bid to end cartels stymieing Corporation's efforts to lease its assets for a higher amount, the civic body's Finance and Taxation Committee has decided to initiate a couple of measures.

The first of these is increasing the margin for the assets that are placed for re-tender. Deputy Commissioner S. Sivarasu said that for the first re-tender the civic body would increase the margin by 10 per cent, another 10 per cent for the second re-tender and by 20 per cent for the third re-tender.

At the end of the third re-tender the margin would have increased by 40 per cent, deterring cartels. At present, the cartels, to thwart the lease of the assets being awarded to persons outside their group, quote five per cent more than the highest bid to force the civic body to re-tender the same. They keep doing the same so that the members of the cartel continue to retain the assets. The committee led by Chairman R. Prabhakaran approved of the move to increase the margin and place the same before the Council for approval. “The aim is to increase Corporation's revenue,” he said.

Mr. Sivarasu complemented him saying that the civic body hoped to increase its revenue from non-tax sources, which mainly involved income from lease, from Rs. 15 crore to Rs. 30 crore.

The second of the measures is preparing a list of assets that are ready for tender after completion of nine years. He said that for assets that had completed nine years, the Corporation was of the view that it was prudent not to extend the lease for another three years for the same leasee by hiking the lease amount by five per cent but float fresh tenders for the same by assessing the market price. Citing an example, he said that an asset that was leased at Rs. 1,000 nine years ago, if extended, would now fetch only around Rs. 1,400. If the same was leased afresh based on market price, it would get fetch around Rs. 5,000 or Rs. 6,000 depending on the location. This would also prevent the asset being sub-let for a higher cost, the Deputy Commissioner said and added that the market price would be based on the Public Works Department's Schedule of Rates.

The Finance Committee then passed a few resolutions regarding fixing lease price for its assets, held over a few subjects to take a price review and decided to refer a few subjects to the Council.

 


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