G.O.(Ms)No. 1, Tamil Nadu Sustainable Urban Development Project, 2015

What the government approved

Government Order G.O.(Ms)No. 1 dated 2 January 2015 approves an initial pipeline of nine new projects and four projects carried over from the Tamil Nadu Urban Development Project III. The Municipal Administration and Water Supply (MA2) Department issued the administrative sanction after considering the recommendation of the Board of Tamil Nadu Urban Infrastructure Trustee Company Limited.

The combined project cost is Rs.2,212.89 crore. The proposed financing consists of Rs.1,223.61 crore as loans from the Tamil Nadu Sustainable Urban Development Project, Rs.768.01 crore as grants from the project and Rs.221.27 crore as contributions from urban local bodies.

Projects covered

The nine new projects are:

• Integrated storm water drains in the Adyar and Cooum basins in expanded areas of the Corporation of Chennai.
• Upgrading four Chennai bus route roads to international standards.
• Pedestrianisation of T. Nagar in Chennai.
• Restoration of Narayanapuram Lake in Chennai.
• Restoration of Vaigaikulam and Periyakulam tanks in Tirunelveli Corporation.
• Restoration of Chinnandipalayam Tank in Tiruppur Corporation.
• Restoration of Zamin Pallavaram Periya Eri and Keelkattalai Eri in Pallavaram Municipality.
• Hosur underground sewerage scheme.
• Tertiary treatment reverse osmosis plant at Kodungaiyur by the Chennai Metropolitan Water Supply and Sewerage Board.

The four spill-over projects cover water supply improvements in Pallavaram Municipality, Pammal Municipality and Theni-Allinagaram Municipality, plus street light improvements in the Corporation of Chennai.

Financial and user charge conditions

Government Order G.O.(Ms)No. 1 records that the first seven projects are non-remunerative. Their operation, maintenance and debt servicing must be paid from the general funds of the respective urban local bodies, which were assessed as having adequate financial capacity.

Loan sanction for the Hosur underground sewerage scheme is subject to the Municipal Council fixing deposits and tariffs on a graded basis, based on sewage generated or plinth area. Assessments with a plinth area above 2,400 square feet were proposed to have deposits and tariffs proportionate to their area.

The Kodungaiyur treatment plant was assessed as self-sustaining with industrial user charges of Rs.45 per kilolitre.

Relevance to property owners

Government Order G.O.(Ms)No. 1 concerns public infrastructure funding and implementation. Property owners in Hosur may be affected by sewerage deposits or tariffs fixed by the Municipal Council, while residents and businesses in the listed local bodies may be affected by the infrastructure works and services.