Chennai City Development Plan 2009

City Development Plan Investment Program Review and
Institutional Development Support, Chennai
Cities Development Initiative for Asia CDIA

Corporation of Chennai
Chennai City Development Plan 2009

Volume 1: Main Report
Project No: 07.2029.2-001.00
September 2009
GHK Consultants India Private Ltd
(An associate of GHK Group, United Kingdom)
In association with
Taxila, SUSTAIN, HABICO
Volume 1
Table of Contents - Volume 1: Main Report

Executive Summary
Acknowledgements
Introduction.......................................................................................................................................1
1.
The Chennai City Development Plan 2009...............................................................................1
2.
The Need for A Revised CDP ..................................................................................................3
3.
Report Structure ......................................................................................................................4
4.
Preparing the Revised CDP.....................................................................................................4
4.1
Considerations.....................................................................................................................4
4.2
Stakeholder Participation .....................................................................................................5
Part A: Goals, Objectives, Principles and Strategies ....................................................................15
5.
Vision Statement ...................................................................................................................15
6.
Goals and Objectives ............................................................................................................15
7.
Guiding Principles .................................................................................................................16
7.1
Principles - CDP ................................................................................................................16
7.2
Principles - The Form of Chennai.......................................................................................17
8.
Poverty Reduction, Infrastructure and the CDP......................................................................17
9.
Environment, Climate Change and the CDP ..........................................................................17
10.
Disaster Management and the CDP.......................................................................................18
11.
Development Strategies (from CDP/SMP) .............................................................................18
11.1 City Development Plan (2006) ...........................................................................................18
11.2 Second Master Plan ..........................................................................................................18
11.3 A CDP 2009 Strategy.........................................................................................................19
Part B: Development Context.........................................................................................................21
12.
Macro-Level Planning - The Planning Area ............................................................................21
12.1 Planning Area Structure.....................................................................................................21
12.2 Planning Area Components ...............................................................................................23
12.3 Influences beyond the Planning Area.................................................................................25
12.4 The Investment Area .........................................................................................................27
12.5 Summary and Implications of the Current Development Trends .........................................27
12.6 Global and National Urban Growth Trends.........................................................................27
13.
Environment and Disaster Management ................................................................................28
13.1 Environmental Features.....................................................................................................28
13.2 Agencies Responsible for Environment Management.........................................................30
13.3 Disaster Management........................................................................................................30
14.
The Residents of the CMA - Demographic Profile ..................................................................31
14.1 Tamil Nadu ........................................................................................................................31
14.2 Chennai Metropolitan Area (CMA) .....................................................................................31
14.3 Population Projections for 2026 .........................................................................................32
14.4 Migration ...........................................................................................................................32
14.5 Age Structure ....................................................................................................................32
14.6 Sex Composition ...............................................................................................................32
14.7 Literacy..............................................................................................................................35
14.8 Slum Population ................................................................................................................35
15.
Economy...............................................................................................................................35
15.1 Formal Sector....................................................................................................................35
15.2 Informal Sector ..................................................................................................................38
16.
Institutional Structure and Governance .................................................................................39
16.1 Government of India ..........................................................................................................39
16.2 Government of Tamil Nadu ................................................................................................39
16.3 Chennai Metropolitan Area (CMA) .....................................................................................41
16.4 Corporation of Chennai (CoC)............................................................................................41
16.5 Municipalities in CMA.........................................................................................................43
16.6 Town Panchayats ..............................................................................................................44
16.7 Village Panchayats ............................................................................................................45
16.8 Specialised Agencies Associated with Planning & Development in CMA ............................45
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16.9 Chennai Metropolitan Development Authority (CMDA) .......................................................45

16.10
The Financial Backbone.................................................................................................45
16.11
The Legal Framework ....................................................................................................47
16.12
Planning History.............................................................................................................47
17.
Financing Urban Development...............................................................................................48
17.1 Introduction........................................................................................................................48
17.2 Chennai CDP 2006 Financial Perspectives .....................................................................48
17.3 Provision of Urban Infrastructure for Inclusive Civic Development ......................................50
17.4 Financing Infrastructure .....................................................................................................50
17.5 Corporation of Chennai: Internal Accrual............................................................................53
Part C: Macro-Level Planning Strategy..........................................................................................55
18.
Macro-Level Planning and Growth Management....................................................................55
18.1 Assumptions......................................................................................................................56
18.2 Macro-Level Growth Management Scenarios.....................................................................56
18.3 Proposed Macro-Level Development Strategy ...................................................................57
18.4 Priority Peri-Urban Development Areas..............................................................................61
Part D: Sector Strategies and Development ..................................................................................63
19.
Governance, Institutional Framework and Capacity Building ..................................................64
19.1 Metropolitan Governance in CMA ......................................................................................64
19.2 Suggested Institutional Reforms in CMA Governance ........................................................68
19.3 Recommended Planning & Development Process .............................................................72
19.4 Enforcement Mechanism ...................................................................................................73
19.5 Legal Framework...............................................................................................................73
19.6 The Financial Backbone ....................................................................................................73
19.7 Institution for Participatory Governance..............................................................................73
19.8 Institutional Development Support......................................................................................74
19.9 Capacity Building...............................................................................................................74
19.10 Funding Required for Institutional Development and Capacity Building...............................77
20.
Traffic and Transportation......................................................................................................79
20.1 Introduction........................................................................................................................79
20.2 Summary Background and Situation Analysis ....................................................................79
20.3 Need for Holistic Approach to Project Planning ..................................................................81
20.4 Optimisation of Street Space Utilisation..............................................................................81
20.5 Mobility Hubs.....................................................................................................................84
20.6 Grade Separator Facility ....................................................................................................84
20.7 Ownership of Right Way ....................................................................................................84
20.8 Additional Improved Mobility Suggestions ..........................................................................84
21.
Waterways Management .......................................................................................................88
21.1 Introduction........................................................................................................................88
21.2 Major Waterways...............................................................................................................88
21.3 Overview and Analysis of Existing Storm Water Drainage ..................................................90
21.4 CoC Storm Water Gap Analysis.........................................................................................91
21.5 Municipalities - Storm Water Drainage ...............................................................................91
21.6 Town Panchayats - Storm Water Drainage ........................................................................91
21.7 Overview and Analysis of Waste Water and Sanitation Management .................................91
21.8 Overview and Analysis of Solid Waste Management ..........................................................91
21.9 Cost Estimate ....................................................................................................................92
21.10 Financial Perspectives Waterways Management and Storm Water Drains ......................92
22.
Water Supply.........................................................................................................................94
22.1 Introduction........................................................................................................................94
22.2 Summary of Background and Situation Analysis ................................................................94
22.3 Inventory of On-going and Planned Projects ......................................................................97
22.4 Gap Analysis and Proposed Projects .................................................................................97
22.5 Financial Analysis............................................................................................................101
23.
Sewerage and Sanitation.....................................................................................................103
23.1 Introduction......................................................................................................................103
23.2 Summary Background and Situation Analysis ..................................................................103
23.3 Inventory of Existing and Planned Projects ......................................................................105
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23.4 Gap Analysis and Proposed Projects ...............................................................................108

23.5 Financial Analysis Sewerage and Sanitation .................................................................108
24.
Solid Waste Management....................................................................................................110
24.1 Study Area.......................................................................................................................110
24.2 Overview and Analysis of Existing Situation .....................................................................110
24.3 Major Initiative of the Authorities ......................................................................................111
24.4 Identification and Analysis of the Gaps.............................................................................112
24.5 Solid Waste Management Strategy and Options ..............................................................112
24.6 Summary of Proposed Projects........................................................................................114
24.7 Solid Waste Management The PSP Module..................................................................116
24.8 Requirement of Finance to manage projects until 2026 ....................................................117
25.
Energy ................................................................................................................................118
26.
Communications..................................................................................................................118
27.
Shelter ................................................................................................................................119
27.1 Introduction......................................................................................................................119
27.2 Governments Policy / initiatives.......................................................................................119
27.3 Agencies Involved in Housing Development.....................................................................119
27.4 TNHBs Housing Schemes...............................................................................................119
27.5 Joint Venture / Public Private Partnership Model ..............................................................121
27.6 Private Sector..................................................................................................................121
27.7 Suggestions / Recommendations.....................................................................................121
28.
Basic Services for Urban Poor.............................................................................................122
28.1 Introduction......................................................................................................................122
28.2 Urban Poverty..................................................................................................................122
28.3 Growth of Slums and Slum Population in CMA.................................................................122
28.4 Tamil Nadu Policy on Slums ............................................................................................124
28.5 Objectives of TNSCB.......................................................................................................124
28.6 TNSCB Projects: 2008-2009 ............................................................................................124
28.7 Slum Improvement Plan...................................................................................................125
28.8 Guiding Principles for Slum Improvement.........................................................................126
28.9 Issues, Observations and Recommended Approaches.....................................................126
28.10 Slum Improvement Projects .............................................................................................128
28.11 Implementation ................................................................................................................128
28.12 Investment Required........................................................................................................131
29.
Urban Renewal....................................................................................................................132
29.1 Current Scope of Urban Renewal.....................................................................................132
29.2 Expanded Scope of Urban Renewal - Concept ................................................................132
29.3 Urban Renewal Programme.............................................................................................132
29.4 Key Approaches to Urban Renewal .................................................................................134
29.5 Guiding Principles for the Urban Renewal ........................................................................134
29.6 Urban Renewal Plan........................................................................................................134
29.7 Priority (Target) Areas for Urban Renewal........................................................................135
30.
Integrated Developments.....................................................................................................139
30.1 Definition .........................................................................................................................139
30.2 CDP Applications.............................................................................................................139
31.
Social Amenities..................................................................................................................144
32.
Heritage Resources - Natural and Manmade .......................................................................144
Part E: Investment Selection and Prioritisation...........................................................................145
33
Investment Selection ...........................................................................................................145
34
Investment Prioritisation ......................................................................................................145
Part F: Summary Investment and Implementation Plan..............................................................161
35
Investment Financing ..........................................................................................................161
35.1 Financing Issues..............................................................................................................164
35.2 Potential Financing Sources ............................................................................................164
36
Implementation Capacity .....................................................................................................165
37
Monitoring and Evaluation ...................................................................................................166
38
Communication & Marketing Strategy..................................................................................166
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Volume 2:
Volume 3:
Volume 4:
Volume 5:
Volume 1
Stakeholder Participation
Technical Annexes
Financial Annexes
Institutional Development and Capacity Building
List of Maps
Map 1: Chennai Metropolitan Area (CMA) ...........................................................................................2
Map 2: Chennai Urban Agglomeration (CUA) ....................................................................................22
Map 3: Development Growth Corridors..............................................................................................26
Map 4: Environmentally/Ecologically Sensitive Areas ........................................................................29
Map 5: Chennai City - Population Density in Municipal Zones, 2001 .................................................33
Map 6: Population Density in Municipalities.......................................................................................34
Map 7: Industrial Developments ........................................................................................................36
Map 8 : Proposed Macro-Level Growth Management Strategy ..........................................................60
Map 9: CMA Transportation System..................................................................................................80
Map 10: Proposed Water Supply & Sewerage Projects .....................................................................98
Map 11: TNHB Housing Projects and Neighbourhood Schemes......................................................120
Map 12: Urban Renewal Projects - Chennai City .............................................................................133
Map 13: Chennai - Priority Areas for Urban Renewal.......................................................................136
List of Figures
Figure 1: Structure of the CDP 2009....................................................................................................4
Figure 2: Participatory CDP Preparation Process ................................................................................6
Figure 3: Typical Project Cycle..........................................................................................................16
Figure 4: Municipal Administration and Water Supply Department .....................................................40
Figure 5: CoC Executive Set-up Standing Committees ...................................................................42
Figure 6: Planning and Development Agencies in CMA .....................................................................46
Figure 7: Macro Area Growth Analysis ..............................................................................................56
Figure 8: Good Governance
64
Figure 9: Sustainable Governance ....................................................................................................64
Figure 10: Chennai Metropolitan Development Board........................................................................69
Figure 11: Metropolitan Region Footprint for Governance...............................................................70
Figure 12: Sources of Waste ...........................................................................................................110
Figure 13: Objectionable Slum Population Distribution - Chennai.....................................................123
Figure 14: Street Space Optimization - Concept ..............................................................................137
Figure 15: Basin Bridge Conceptual Urban Renewal ....................................................................138
Figure 16: Integrated, Sustainable Urban Development...................................................................139
Figure 17: Conceptual Sustainable Neighbourhoods .......................................................................142
List of Tables
Table 1: CDP Issues ...........................................................................................................................3
Table 2: Stakeholder Input Summary Formal Events ........................................................................7
Table 3: Planning Area Summary (2009)...........................................................................................23
Table 4: Growth Corridors .................................................................................................................25
Table 5: Urban Population of Tamil Nadu, 1991-2001........................................................................31
Table 6: Population Growth and Density in CMA ...............................................................................32
Table 7: Legal Framework.................................................................................................................47
Table 8: Summary of CMA Investments Proposed in 2006 CDP........................................................49
Table 9: CUA Projects Approved for JNNURM to Feb. 2009..............................................................49
Table 10: JNNURM Funding - Tamil Nadu.........................................................................................49
Table 11: Macro-Level Growth Management Scenarios.....................................................................57
Table 12: Proposed Macro-Level Development Strategy (Scenario 4) ...............................................58
Table 13: Summary of Population Projections - 2026 ........................................................................59
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Table 14: CMA Institutional Tasks .....................................................................................................64

Table 15: Government Agency Responsibilities.................................................................................66
Table 16: Specific Action Agendas ....................................................................................................71
Table 17: Recommended Planning & Development Process .............................................................72
Table 18: Capacity Gaps - Corporation of Chennai............................................................................75
Table 19: Capacity Gaps - CMDA .....................................................................................................75
Table 20: Capacity Gaps - CMWSSB ................................................................................................76
Table 21: Capacity Gaps - TNSCB....................................................................................................76
Table 22: Project Summary Institutional Development and Capacity Building .................................78
Table 23: Project Summary - Transportation .....................................................................................85
Table 24: Areas for Future Growth along the Identified River Corridors..............................................89
Table 25: Cost Summary of Waterways Rehabilitation Projects .........................................................92
Table 26A: Summary Cost Estimates of Priority-1 Drainage Systems................................................92
Table 26B: Summary Cost Estimates of Priority- 2 Drainage Systems ...............................................92
Table 27: Requirement of Finance- Storm Water Drains....................................................................94
Table 28: Existing Tanks/ Reservoirs ................................................................................................95
Table 29: Water Availability...............................................................................................................95
Table 30: Water Demand in CMA......................................................................................................96
Table 31: Details of Treatment Plants................................................................................................96
Table 32: Project Summary - Water Supply.......................................................................................99
Table 33: CMWSSB Borrowing .......................................................................................................101
Table 34: Finance Requirements - Water Supply Sector..................................................................102
Table 35: Features of Existing Sewage Treatment Plants................................................................104
Table 36: Existing Sanitation Status - Municipalities ........................................................................104
Table 37: Project Summary Sanitation..........................................................................................106
Table 38: CMWSSB Borrowing .......................................................................................................109
Table 39: Finance Requirement - Sewerage and Sanitation to 2026................................................109
Table 40: Matrix of Differentiated SWM Strategies for Domestic Waste ...........................................112
Table 41A: Details of Urban Clusters...............................................................................................114
Table 41B: Details of Rural Clusters................................................................................................114
Table 42A: Sub Projects and Preliminary Cost Estimate for Urban Clusters.....................................114
Table 42B: Sub Projects and Preliminary Cost Estimate for Urban Clusters.....................................115
Table 43: Requirement of Finance- Solid Waste Management Sector..............................................117
Table 44: Growth of Slums in Chennai City .....................................................................................122
Table 45: Slums in Objectionable Locations in Chennai City, 2000 ..................................................123
Table 46: Objectionable and Unobjectionable Slums in CMA...........................................................123
Table 47: Status of Tsunami Reconstruction ...................................................................................124
Table 48: Status of JNNURM - Basic Urban Services......................................................................125
Table 49: Project Summary Slum Improvements ..........................................................................129
Table 50: Government Land Slum Improvement Cost Estimates .....................................................131
Table 51: Project Summary - Integrated Development and Urban Renewal .....................................143
Table 52: Investment Prioritisation ..................................................................................................149
Table 53: Investment and Funding Summary ..................................................................................162
Table 54: Implementation Capacity .................................................................................................166
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Abbreviations and Acronyms

ADB
ARV
AUA
BMZ
CAA
CBO
CCRCP
CDIA
CDP
CIDA
CMA
CMDA
CMWSSB
CoC
CPT
CPWD
CRZ
CTTS
CUA
CWSAP
DBOOT
DFID
DLDP
DSR
DUA
EoI
EPL
ETB
ETP
EWS
GHK
GIS
GoI
GoTN
GTN
GTZ
HIG
ICAI
IT
JnNURM
KWMC
LIG
LOE
lpcd
LRTS
MATS
MAWS
MIG
MIS
ML
Main Report
Asian Development Bank

Annual Rateable Value
Adjacent Urban Area
The Federal German Ministry for Economic Cooperation and Development
Constitution Amendment Act
Community Based Organization
Chennai City River Conservation Project
Cities Development Initiative for Asia
City Development Plan
Canadian International Development Agency
Chennai Metropolitan Area
Chennai Metropolitan Development Authority
Chennai Metropolitan Water Supply and Sewerage Board
Chennai Port Trust
Central Public Works Department
Coastal Regulation Zone
Comprehensive Traffic and Transportation Study
Chennai Urban Agglomeration
Chennai Water Supply Augmentation Project
Design, Build, Own, Operate and Transfer
Department for International Development, Govt. of United Kingdom
Dual Loader Dumper Placer
Deb Servicing Ratio
Distant Urban Area
Expression of Interest
Ennore Port Limited
Electronic Trolley Bus
Effluent Treatment Plant
Economically Weaker Section
GHK Consultants India Private Ltd
Geographical Information System
Government of India
Government of Tamil Nadu
Government of Tamil Nadu
Deutsche Gesellschraft fur Technische Zusammenarbeit (GTZ) GmbH
High Income Group
The Institute of Chartered Accountants of India
Information Technology
Jawaharlal Nehru National Urban Renewal Mission
Koyambedu Wholesale Market Complex
Lower Income Group
Level of Effort
Litre per capita per day
Light Rail Transit System
Madras Area Transport Study
Municipal Administration and Water Supply
Middle Income Group
Municipal Information System
Million Litre
vi
MLD
MMDA
MRTS
MTC
NGO
NRCD
O&M
ORR
PCE
PFS
PPP
PSP
PWD
RoW
SEZ
SFC
SIDA
SMP
STP
SUM
SVP
SWD
TDM
TMC
TNHB
TNPCB
TNSCB
TNSRTC
TNUDP
TOR
TWAD
UA
ULB
UMTA
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Million Litres per Day

Madras Metropolitan Development Authority
Mass Rapid Transit System
Metropolitan Transport Corporation
Non Governmental Organization
National River Conservation Directorate
Operation and Maintenance
Outer Ring Road
Passenger Car Equivalent
Pre-Feasibility Study
Public Private Partnership
Private Sector Participation
Public Works Department
Rights-of-Way
Special Economic Zone
State Finance Commission
Swedish International Development Cooperation Agency
Second Master Plan
Sewage Treatment Plant
Sustainable Urban Management
Special Village Panchayats
Storm Water Drainage
Travel Demand Management
Thousand Million Cubic Feet
Tamil Nadu Housing Board
Tamil Nadu Pollution Control Board
Tamil Nadu Slum Clearance Board
Tamil Nadu State Road Transport Corporation
Tamil Nadu Urban Development Project
Terms of Reference
Tamil Nadu Water Supply & Drainage Board
Urban Agglomeration
Urban Local Body
Unified Metropolitan Transport Authority
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Executive Summary
Introduction
The purpose of the Chennai City Development Plan 2009 (CDP) is to update the 2006 CDP that was
prepared as part of the Government of India's Jawaharlal Nehru Urban Renewal Mission (JNNURM)
funding application process. The revised CDP 2009 will guide development of the Chennai
Metropolitan Area through to the year 2026. The need for a revised CDP was identified for a number
of reasons as discussed in the main report. The City of Chennai subsequently sought and received
assistance from the Asian Development Bank's (ADB) City Development Initiative for Asia Program
(CDIA) to undertake the work. Chennai is the first city to undergo the CDP Review exercise and, as
such, presents a model for replication in other Indian cities and elsewhere in the CDIA programme.
Objectives
This review of the 2006 CDP has three prime objectives:
1.
to conduct a participatory review of the Corporation of Chennai's (CoC) CDP and its investment
program to be submitted under the JNNURM Funding;
2.
to strengthen institutional development within government, NGOs and civil society to identify,
prioritize and plan infrastructure projects; and
3.
to assist the CoC prepare a marketing strategy and plan, with an emphasis on linking CoC to
financing institutions and infrastructure projects within it.
CDP Preparation Process

A carefully structured and comprehensive process was followed in the preparation of the CDP 2009.
Reviewed CDP (2006), SMP (2008) and on-the-ground field situation
Listened to Stakeholders in a series of participatory Workshops
Identified issues and determined Guiding CDP Strategies
Consolidated Macro-Level Planning Framework from SMP
Evaluated long-list of potential investment - Prioritised
Prepared Investment Plan
Followed up with:
Institutional Development and Capacity Building
Marketing & Communication Strategies and Plan
Stakeholder participation formed a strong component of the CDP 2009. Informal participation was ongoing throughout the exercise and a formal programme of events was implemented including:
1.
8 November 2008: North Chennai Stakeholders Workshop hosted by the North Chennai
Peoples Right Forum.
2.
20 December 2008: Workshop involving all councillors of Corporation of Chennai.
3.
7 February 2009: Workshop on the "Formal Sector Economy and Mobility Infrastructure".
4.
14 February 2009: Workshop on the "Informal Sector" discussing needs of both housing
and economic activities.
5.
29 May 2009: Workshop held on "Institutional Structure and Governance".
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16 September 2009: Review of Draft CDP 2009: Presented and discussed with
participants including government officials from both CoC and State levels, members of
Chennai's informal sector, civil society groups, academics, media, CDIA and consultant
teams.
Improvements by CDP 2009 over CDP 2006

The CDP 2009 improves on several aspects of the 2006 CDP as requested in the Terms of
Reference. The CDP 2009 includes:
Extensive Stakeholder Participation process;
Macro-Level Planning Framework drawn from the SMP;
Attention to Urban Renewal, Optimisation, Integrated Development;
Consideration of the Informal Sector;
Strengthened consideration of Housing;
Strengthened Prioritisation and Justification processes;
Institutional Structure and Capacity Building needs;
"Soft" as well as "hard" components;
A full range of funding options in addition to JNNURM.
Structure of the CDP 2009 Document

The CDP 2009 is in 5 volumes:
Volume 1: Main Report: covers the City Development Plan for Chennai Metropolitan Area with
special reference to spatial planning, infrastructure planning, and investment planning for
projected development until 2026.
Volume 2: Stakeholder Participation: includes proceedings and follow-up reporting on the
formal Stakeholder Participation events. It highlights how the stakeholder concerns were
addressed in the CDP 2009.
Volume 3: Technical Annexes: covers the technical analysis of each sector and includes
project sheets for identified investments.
Volume 4: Financial Annexes: covers the analysis of the historical financial data for
responsible implementing agencies. In addition, it includes financial projections for CoC and
CMWSSB until 2026 that forms the basis for recommending various financing options.
Volume 5: Institutional Development and Capacity Building: focuses on managing public
services effectively.
The CDP 2009 Area

The CDP 2009 considers two physical areas: Figure ES-1:
1.
2.
The Planning Area which is the wider area of direct impact on the growth and development of
Chennai; and
The targeted Investment Area, limited to the Chennai Urban Agglomeration (CUA) and
selected other growth points within the Chennai Metropolitan Area (CMA).
The physical Planning Area comprises 5 components:

1.
Corporation of Chennai - the 'City';
2.
16 Municipalities
3.
20 Town Panchayats
4.
214 Village Panchayats (grouped into 10 Panchayat Unions) which include the majority of
the rural and natural areas;
5.
A series of Satellite Towns lying beyond the CMA.
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The actual "growth" of Chennai impacts a much wider area. Planning for the future must be aware of
regional, national and international influences.
Figure ES-1: The Planning Area and CUA
The Existing Situation - The CDP 2009 Context

The Land: Most of the CDP Area - the CMA comprises a total area of 1,186 km2 - is flat and low-lying
inter-laced with a network of water bodies and water ways. Issues of managing land use, flooding,
water ways, pollution and waste are all major, underlying concerns.
Population: The CMA's estimated population in 2009 is 8.26 million, of which 4.8 million live in the
City. An estimated 22.8%, or close to 1 million persons, live in slums. Growth rates have been highest
in the largely unplanned peri-urban and Village Panchayat areas, while the City itself experiences
significant out-migration. The CMA population is projected to reach 12.5 million by 2026. Sustainably
managing this growth is central to the CDP 2009.
Economy: The formal sector accounts for only about 30% of Chennai's employment, while the often
ignored informal sector provides 70% of the jobs, and goods and services utilised by all. Chennai's
formal sector economy has a diversified base driven by automobile manufacturing, software services,
hardware manufacturing, healthcare and financial services. The CDP 2009 addresses planning and
infrastructure needs for an orderly growth of the formal sector within the CMA while also stressing the
need for recognition of the legitimacy and importance of the informal sector, and the need for provision
of appropriate "space" in the City.
Institutional Structure, Governance and Capacity Building: There is a multiplicity of agencies
involved in urban planning and development in the CMA. Integration and coordination between them is
typically weak. The Chennai Metropolitan Development Authority is the umbrella agency responsible
for planning for the ULBs. However, some approval activities are partly vested in the Chennai
Corporation and other local bodies. Tamil Nadu Slum Clearance Board (TNSCB) is responsible for
planning and implementation of slum upgrading, clearance and relocation projects. TUFIDCO is a
Nodal agency for the centrally sponsored Urban Infrastructure Development schemes of CMWSSB
and other parastatal agencies of JNNURM, UIDMMT, IDSMT and MCP. TUFIDCO also extends
financial assistance by way of loans to ULBs. TNUIFSL is the private-public funding institution
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established for urban infrastructure planning under the World Bank assisted Tamil Nadu Urban
Development Fund. Many agencies lack sufficient capacities to fully exercise their responsibilities.
Municipal Infrastructure: Severely strained transportation, water supply, sanitation and energy
services affect most of the population, with pressures increasing due to population growth, a lack of
resources to properly maintain and expand systems and high levels of inability or unwillingness to pay.
The lower-income urban slum populations are particularly lacking access to adequate basic services.
Finance: Municipal level financial resources are minimal at best. The City of Chennai operates with a
slight surplus, although the rate of expenditures exceeds that of revenue. The surrounding
Municipalities virtually all operate at a loss. The Chennai Metropolitan Water and Sewerage Board
(CMWSSB) breaks even, but with insufficient cost recovery to properly run operation and maintenance
programmes. JNNURM funding is an important catalyst for urban development. However, funds
sanctioned to date represent less than 10% of identified needs in the CDP 2006 and a similar shortfall
in CDP 2009. The CDP 2009 is prepared with wide marketability as a main objective in order to fill the
funding gap.
Planning: The CDP 2009 falls under the overall guidance of the Second Master Plan (2008) (SMP)
governing development of the entire Chennai Metropolitan Area. The CDP acts as a more specific
investment guide for implementation of the SMP, and will be followed by a series of Detailed Project
Reports which pave the way for implementation.
Issues and Guiding Strategies

A number of CMA development issues and Guiding Strategies to address them are drawn from both
the SMP and the Stakeholder Participation process and form the basis of the revised CDP 2009:
1.
The CMA must move beyond the ad hoc development pattern that has characterised growth to
date and replace it with a comprehensive, integrated approach;
2.
Planning and development must consider the environment as the fundamental base layer for
sustainable social and economic development;
3.
Two approaches to planning and development: Optimisation of existing land and infrastructure
in built-up areas, and strategically identified expansion;
4.
Both formal and informal economic activity must be supported through planning and
infrastructure development;
5.
Adequate institutional capacity is essential for sustainable planning, implementation and

management of all development.
Underlying all of these as major cross-cutting themes are linkages to Poverty Reduction and
sustainable Environmental Management, both of which are supported throughout.
Macro-Level Growth Management Framework

An overall CMA Macro-Level Growth Management Framework is needed as the starting point for
selecting and organising individual project investments. The SMP sets out the key strategies and
principles including:
1.
Demarcation and protection of environmentally and ecologically sensitive areas;
2.
Focused growth in peri-urban areas and selected growth points;
3.
A series of integrated new "neighbourhood" developments along the Outer Ring Road;
4.
Institute specific Area Development Projects for upgrading quality of life.
The CDP 2009 consolidates and elaborates these key features and presents them in graphic form to
illustrate a Macro-Level Planning Framework and how it addresses the critical existing situation of ad
hoc development. Figures ES-2 and ES3.
Main Report
iv
Volume 1
Figure ES-2: Macro-Level Growth Management

a. Environmental Features
b. Current Growth Pattern
c. Proposed Growth Pattern
Figure ES-3: Proposed Macro-Level Growth Management Strategy
Main Report
Volume 1
Investment Prioritisation
Prioritisation of a long-list of desired investments is the basis for preparation of a comprehensive short,
medium and long-term Investment Plan. The following 3 steps were used:
1.
Identification of a long-list of potential project investment came from the following sources:
2.
CDP (2006)
Stakeholder Participation process
SMP (2008)
Consultant identified "gaps" required to implement the SMP
Organisation of potential investments in accordance with:
3.
Geographic Area within the CMA (City, Municipality, Village Panchayats)

Sector
Optimisation, New, Study, Under Implementation
Phasing
Prioritisation and screening factors include:
Environmental importance
Socio-economic benefit
Support to SMP implementation (targeted growth areas)
Integration/follow-up to existing investments
Funding availability (Phasing)
Institutional capacities
Emphasis on Optimisation before New
Stakeholders expressed concerns
Sector Approaches and Recommendations

Table ES-1 summarises the approach to recommendations taken by the CDP 2009 for each Urban
Sector.
Table ES-1: Summary CDP 2009 Sector Approaches and Recommendations
Sector
Approach Recommendations
th
Institutional Capacity,
Governance Reform
and Capacity Building
Imperatives of decentralised democratic governance under 74 constitution

amendment to be fully factored in
priority needs for sustainable planning, implementation and management
recognize important role of civil society
institutionalise Stakeholder Participation
create an umbrella Metropolitan Planning Agency for integrated coordination
implement recommendations/requirements of the JNNURM program
need internal capacity to manage, implement, monitor and revise CDP 2009
Solid Waste
Management
a priority environmental health sector separately developed to Pre-Feasibility

Stage under another consultancy
recommends decentralised approach to primary and secondary collection
recommends a centralised "cluster" approach for final disposal
identifying appropriate final disposal sites is critical
focus on minimising final disposal quantities through recycling, etc.
Waterways
Management
a priority environmental sector separately developed to Pre-Feasibility Stage

under another consultancy
focus on flood reduction, mosquito and pollution control
Main Report
vi
Sector
Volume 1
Approach Recommendations
Water Supply
focus on combination of upgrading/optimising existing infrastructure

investments
fill service gaps to under-serviced population groups
focused expansion and densification of priority peri-urban areas
Sewerage and
Sanitation
focus on combination of upgrading/optimising existing infrastructure

investments
fill service gaps to under-serviced population groups
focused expansion and densification of priority peri-urban areas
recognized impacts on Waterways Management
Traffic and Transport
recognizes series of major capital-intensive projects already planned or under

implementation
focus on filling "gaps" in current services, networks
optimise existing infrastructure
support multi-modal connectivity
Slum Upgrading - Basic

Urban Services
formal recognition of the informal sector as a legitimate part of the city is

needed
existing ad hoc and segregated development needs coordinating under the
same urban authority as for other urban planning and development initiatives
Shelter
over 95% of shelter is by private sector which needs enabling environment

government role should be as facilitator, not provider
government focus should on facilitating shelter for lower-income. Higher
income is fine on their own
Integrated Urban
Development/Urban
Renewal
all urban work requires multi-sector integration and coordination

includes slum upgrading, redevelopment of existing built-up areas, proposed
new "neighbourhoods" along outer Ring Road, other "Greenfield" developments
"optimisation" programs require multi-sector integration
Heritage Resources
important to recognize, preserve, incorporate as important cultural assets,

urban richness, tourism potential
not addressed in depth in CDP 2009
Energy
not addressed in CDP 2009
Communications
Social Amenities
Investment Plan
The Prioritised Investments, projected to total Rs 236,402.61 millions through to 2026 are organised
as a comprehensive Investment Plan which identifies existing and required "gap" funding by Sector,
Geographic Area and Responsible Institution. The Investment Plan also outlines a series of financing
issues to be addressed, alternative sources of "gap" funding, and an indication of implementation
capacities of the responsible institutions. A separate section deals with how to develop the required
institutional capacities where needs are identified. Table ES-2 summarises proposed investments by
Sector while Table ES-3 presents an investment summary by CMA Area. Table ES-4 presents
projected investments on a per capita basis based on estimated populations in 2026 in accordance
with the proposed Macro-Level Growth Management Strategy.
Main Report
vii
Volume 1
Table ES-2: Investment Plan Summary by Sector

(Figures in Million Rs)
SL. NO
CENTRAL GRANTS
under JNNURM
(available)
TOTAL ESTIMATED
REQUIREMENT
to 2026
SECTOR
1
Inst. Capacity Building
Key Infrastructure
GAP (to be provided by

GoI/GoTN/ULBs and other
funding sources)
225.00
225.00
Solid Waste Management
9,547.57
1,048.36
8,499.22
Waterways/Drainage
53,359.04
5,067.66
48,291.38
Water Supply
77,128.00
6,874.35
70,253.65
Sewerage and Sanitation
22,064.00
3,383.45
18,680.55
28,951.00
289.68
28,661.32
45,120.00
5,362.00
39,758.00
6
Traffic and Transportation
Multi-Sectoral
Slum Upgrading / Basic Urban
7
Services for Poor
8
Shelter
Integrated Developments, Urban
Renewal
9
Others
10
11
12
Recommendations made on private

& public sector initatives/roles
Energy
Communications
Social Amenities
13
8.00
8.00
Not directly addressed
To be identified individually &

managed
Heritage Resources
236,402.61
Total
22,025.50
214,377.11
Table ES-3: Investment Plan Summary by Area
Area Summary
SL. NO
1
2
3
4
5
(Fi gures i n M i ll i on Rs)
INVESTMENT
REQUIREMENT
58,090.27
123,207.44
20,789.65
9,362.95
2,926.80
214,377.11
UNITS
Municipalities
Towns Panchayats
Village Panchayats
Total
Table ES-4: Investment Summary by Population
Investment by Population - Summary

SL. NO
CMA Area
1
2
3
4
5

Municipalities
Towns Panchayats
Village Panchayats
Total
Main Report
(Figures in M illion Rs)
Total Investment
Estimated
Per Capita Investment
to 2026 (INR
Population 2026 to 2026 (Rs/Per head)
Million)
58,090.27
139,781.34
24,766.00
10,771.00
2,994.00
236,402.61
viii
12,542,000
6,301,000
4,215,000
1,029,000
997,000
12,542,000
4,631.66
22,183.99
5,875.68
10,467.44
3,003.01
18,849
Volume 1
Potential Funding Sources

The 2006 CDP limiting funding considerations to that available through the JNNURM programme. The
CDP 2009 expands the scope to consider potential funding from a wide range of sources including:
Internal accruals of Implementing Agencies

State Government budgetary support
Government of India schemes/support
Indian Financial Institutions
Bi-lateral funding agencies
Multi-lateral funding agencies
Commercial borrowing
Private sector partnerships
Implementation - Institutional Capacities

The following Table ES-5 summarises the Consultant's estimation of the implementation capacities of
key agencies currently responsible for implementing proposed urban investments. The CDP's
proposed Capacity Building Program is based on this analysis.
Table ES-5: Implementation Capacity of Key Agencies
Key Implementing Agencies and Service Sectors
CoC
CMWSSB
within CMA
Other ULBs
within CMA
TNSCB
(Roads, SWM,
Drainage,
Street Lights)
(Water Supply,
Sewerage &
Sanitation)
(Roads, SWM,
Drainage,
Street Lights)
Basic
Services for
Urban Poor
Roads Weak
SWM Strong
Drains Strong
Strong
Very Strong
Very Strong
Medium
Weak
Very Weak
Very Weak
Strong
Medium
Weak
Very Weak
Medium
Medium
Weak
Average
Weak
Strong
Weak
Average
Medium
Medium
Weak
Weak
Very Strong
Very Strong
Very Strong
Very Strong
Weak
Weak
Weak
Weak
Parameters
Demand-Supply mismatch of
infrastructure requirement
Street Lights Medium

Financial Capacity Internal
Accruals to Finance Infrastructure.
Financial Capacity To Borrow
From Markets
Institutional Framework To Adopt
Reform Measures
Legislative Framework To
Enforce Reform Measures
Capacity and Skills Available to
Implement New Projects
Requirement for Capacity Building
Political Will to Initiate Development
Marketing and Communication Strategies

Separate Marketing and Communication strategies provide CoC and CMDA with the tools to solicit
funding from the alternative sources outlined in the Report.
Main Report
ix
Volume 1
Monitoring, Evaluation and On-going Revision

On-going monitoring, evaluation and revision of the CDP 2009 and resultant investments is essential
to make appropriate adjustments as conditions change, new priorities emerge and levels of available
resources vary. The capacities to undertake this work must be developed internally within the
implementing agencies supplemented by outsourcing to keep projects flowing through the continuous
cycle of Plan, Implement and Manage. The CDP 2009 must be treated as a "living document".
The Way Forward

To move the CDP 2009 forward to achieve real developmental benefits to residents of the CMA
requires series of additional steps beginning with:
Internally the CDP 2009 needs to be reviewed by the full spectrum of concerned
departments, and agencies and eventually adopted as an official planning document
Simultaneously CDP 2009 must go through the approval process expeditiously to the
Government of the State of Tamil Nadu for review, acceptance and support
The CDP 2009 must be moved into the public domain for participatory review,
understanding, acceptance and implementation
Identify early, low-cost Pilot Projects for immediate implementation
Elevate first phase of priority investments to Pre-Feasibility, Feasibility, Detailed Project
Report (DPR), and funding acquisition followed by implementation. Different funding
agencies may require different steps
Setup participatory civil society mechanism as recommend in CDP.
Potential for Immediate Implementation

The earliest possible visible demonstration of action resulting from the considerable efforts and
contributions of all participating stakeholders will help to build acceptance. Pilot Projects in Street
Space Optimisation is one viable option. This has the potential for implementation at relatively low
cost, but also providing the opportunity for extensive community/stakeholder involvement at the
detailed level. Providing the opportunity for serious local stakeholder participation will confirm CoC's
commitment to the concept, while ensuring that word spreads quickly through the majority informal
sector. Visible results will be quickly achieved.
Lessons for Replication

The Chennai CDP 2009, as the first of the CDP Reviews, may serve as a replicable model for
undertaking similar exercises in other Indian and/or CDIA cities. A number of recommendations for
conducting similar processes elsewhere include:
Main Report
Obtain primary guidance from the participation of a full cross-section of stakeholders from
both public and private/civil society sectors
Develop a clear Macro-Level Planning Framework as the essential anchor point
Linkages, integration and coordination between sectors and projects are critical
Build on current initiatives with a first focus on optimisation of existing investments
Target both "soft" and "hard" needs
Respond to local social and economic realities based on stakeholders inputs.
Acknowledgements
Any city however small, is in fact divided into two, one the city of the poor, the other of
the rich. These are at war with one another.
Plato (BC 427-BC 347)
During the tenure of this assignment, help, co-operation and assistance have been
obtained from a large number of individuals, government departments, local bodies,
para-statal agencies, institutes and universities, firms, industries, social workers,
representatives of NGOs and CBOs. They have provided their valuable time and
suggestions to members of the Review team to assist in this study. It is rather difficult to
thank them individually. We express our sincere thanks to all those people collectively.
Their support, encouragement and insights into the social, economic, environmental and
infrastructure problems of the study area and the sector as a whole have provided an
essential input into the proposals in the report. More often than not, these suggestions
triggered useful discussions in shaping various projects in both the City Development
Plans and the sector development proposals for infrastructure and institutional
improvement.
In addition to the obviously critical financial and technical support of the CDIA program
supporters, in particular the Asian Development Bank and the Government of Germany,
preparation of this Report was made possible through the enthusiastic support and
guidance of Shri Rajesh Lokhani, Commissioner and Shri Ashish Chatterjee, Joint
Commissioner of the Chennai Corporation. Chennai Corporation, Chennai Metropolitan
Development Authority, Chennai Metro Water Supply and Sewerage Board cooperation
and interest bodes well for the success of this exercise. At the very pragmatic level, Mr.
Balakrishnan Elangovan, the CDIA consultant for India, continues the challenge of
supporting two consulting teams and their onerous requests. Unknown to them, but the
daily observation of all Chennai's residents, their situations and their needs contributes
the most to the exercise, and will be thanked by successfully contributing this project's
results to their future.
Civil society consultation events brought out over 500 actively engaged and enthusiastic
residents of Chennai. That kind of energy and clear interest in improving their
environment and lives provides the real motivation to complete this work.
Consultants Team
Mr Vijay Tandon
GHK INDIA
Project Director
Mr Rob Story
HABICO
Team Leader, Urban Planning Specialist
Mr M.G. Devasahayam
SUSTAIN
Institutional / Consultation Specialist
Mr Sumitabha Ray
TAXILA
Municipal Finance Specialist
Mr Ranajit Banarjee
GHK INDIA
Municipal Engineer
Ms Archana S Hinduja
GHK INDIA
Urban Planner / GIS Specialist
Mr G. Dattatri
SUSTAIN
Capacity Building Specialist
Mr Mark Selvaraj
GHK INDIA
Traffic and Transportation Planner
Mr R. Navamani
GHK INDIA
Junior Urban Planner
Volume 1
Introduction
1.
The Chennai City Development Plan 2009
The purpose of the Chennai City Development Plan 2009 (CDP) is to help guide development of the
Chennai Metropolitan Area (Map 1) through to the year 2026. The origins of this exercise lie with the
establishment of the Jawaharlal Nehru Urban Renewal Mission (JNNURM) in 2005 by the Government
of India to provide funding for urban development. Chennai is one of the 63 eligible cites. As part of
the funding application process, Chennai prepared a City Development Plan (CDP) in 2006. The need
for a revised CDP was identified and Chennai subsequently sought and received assistance from the
Asian Development Bank's (ADB) City Development Initiative for Asia Program (CDIA) and jointly
supported by the German, Swedish and Spanish governments. GHK Consultants India Pvt. Ltd. in
association with PSP Financial Consultants Pvt. Ltd., SUSTAIN and HABICO began work on the 9month assignment in November 2008.
This CDP 2009 is presented following submission of the Final Inception Report (November 2008),
Draft and Final Interim Reports in February and April 2009 respectively and Draft CDP (June 2009),.
Inputs from three Project Steering Committee meetings and an extensive Stakeholder Participation
program are incorporated.
Main Report
Volume 1
Map 1: Chennai Metropolitan Area (CMA)
Main Report
2.
Volume 1
The Need for A Revised CDP
A number of issues were identified with the original CDP (2006) by the Government of India and
others that lead Chennai to request assistance with revising the document. Issues include both those
related to Development of Chennai and the CMA and related directly to the CDP itself:
Table 1: CDP Issues
Proposed Actions During Preparation of
CDP 2009
Issues
Chennai
Development
Existing CDP
(2006)
Main Report
City and CMA suffer deficiencies in many

of the infrastructure sector
Growth is occurring in an ad hoc manner

without a clear macro spatial strategy
Macro Spatial Strategy will be prepared

including the CMA with linkages beyond
City growth must be linked to the rest of

CMA and beyond, and the need to
ensure a full range of economic
opportunities are addressed
Planning will address more than the IT sector

and ensure support for a full range of formal
and informal activity
Institutional capacities require

strengthening
Institutional capacity will be focused as the

long-term key to sustainability
Development requires accessing the full

range of potential funding / investment
options
CDP will include a matrix covering the full

range of project funding options
CDP review will include parameters and
guidelines for undertaking this study as
critical to prioritising investments
City and CMA's full economy has not

been adequately analysed resulting in
skewed allocation of infrastructure and
investments
CDP review will address all economic

sectors including the critical informal sector
A comprehensive consultation
programme was not included in CDP
preparation
A programme of stakeholder consultation

forms the backbone of the review process. 6
consultations completed. See Vol 2.
A complete comprehensive spatial

development plan as key planning
framework is not presented.
Macro Level Spatial Strategy will be

prepared within framework of SMP
Project justification needs strengthening

and Project prioritisation needs
clarification
CDP will identify linkages between individual

projects for integrated development
Identified projects will include preliminary
assessment, prioritisation and phasing
Existing CDP focused solely on

JNNURM funding, missing other
potential funding options
Projects will be prepared for presentation to

a full range of potential funding entities other
than JNNURM
Discussion of institutional arrangements

and capacity analyses for project
implementation required
Consider planning requirements listed in the

12th Schedule of the 74th CAA
Preparation of a Training and Capacity
Building program
Proposed projects include only hard

capital investments
Project types may be extended to include

both hard and soft components
Urban Renewal not included in project

list
Urban renewal including optimisation

projects will be investigated and added.
Affordable housing considerations

require elaboration
Additional consideration will be given to

affordable housing policies/initiatives,
particularly for slum dwellers & EWS
Greater attention to the needs of informal

sector required with its high proportion of
local employment creation
Planning will address needs in major sectors

as development framework, but of necessity
will concentrate on selected sectors
CDP 2009 will include support for informal

sector
Volume 1
The preparation and presentation of the Chennai CDP 2009 addresses these issues.
A key concept guiding the structure and content of the CDP 2009 is that it is no longer simply a
JNNURM-targeted document, but caters to a much wider local, national and international audience.
Separate Communication and Marketing Strategies then provide guidance in moving the Plan towards
sustainable implementation.
3.
Report Structure
The Revised CDP is presented in 5 Volumes as shown in Figure 1 below.
Figure 1: Structure of the CDP 2009
Volume 1:
Main Report
Introduction
PART A:
Vision, Objectives,
Volume 2:
Stakeholder
Participation
Principles
PART B:
Development
Context
Volume 3:
Technical
Annexes
PART C:
Macro-Level
Strategy
PART D:
Sector Strategies
Volume 4:
Financial
Annexes
PART E:
Investment
Prioritisation
Volume 5:
Institutional
Development &
Capacity Building
4.
PART F:
Investment &
Implementation Plan
Preparing the Revised CDP
4.1 Considerations
Preparation of the Revised CDP is based on:
Main Report
Conducting a Participatory Process involving a full cross-section of stakeholders;

Taking guidance from the existing CDP and approved Second Master Plan;
Integrating the existing CDP and approved Second Master Plan;
4
Volume 1
Making maximum use of existing data with additions and updating as required and
possible;
Applying "best practise" urban planning and development lessons learned in Chennai,
India and internationally.
4.2 Stakeholder Participation

A comprehensive Stakeholder Participation Process formed a key element in the preparation of
the Revised CDP. This process was missing from the 2006 CDP. Inputs to the process are
drawn from a series of formal Workshops, previous consultation/participation work by the Team
in Chennai, media reports and a range of less formal consultation sessions across all segments
of society within the Plan Area.
Figure 2 illustrates the participatory CDP preparation process, while Table 2 summarises the
inputs from the formal sessions and how the CDP 2009 addresses them. Volume 2:
Stakeholder Participation contains complete details of the Participation Program.
Summary of formal Stakeholder Participation sessions:
1.
8 November 2008: North Chennai Stakeholders Workshop hosted by the North Chennai
Peoples Right Forum. Over 200 persons discussed the specific concerns of this generally
lower-income section of Chennai. Among others, Commissioner, Corporation of Chennai,
and Managing Director, CMWSSB participated;
2.
20 December 2008: Involved all councillors of Corporation of Chennai to obtain peoples'

representatives inputs on the needs, priorities, and perceptions of City Development
Plan. Among many Councillors, Corporation Mayor, and Commissioner, CoC attended
the addressed the participants;
3.
7 February 2009: The third Workshop was conducted involving industry representatives
to discuss Perspectives on CMAs Economy and Infrastructure Needs, and Workshop
on Mobility Infrastructure.
4.
14 February 2009: The fourth Workshop concerned discussion on the importance of

Informal Economy sector in development of the city. Member Secretary, CMDA,
participated in the discussion;
5.
29 May 2009: The fifth Workshop addressed "Governance and Institutions for
Development of the CMA." A wide range of knowledgeable experts, NGO representatives
and the private sector participated.
6.
16 September 2009: Review of Draft CDP 2009: Presented and discussed with
participants including government officials from both CoC and State levels, members of
Chennai's informal sector, civil society groups, academics, media, CDIA and consultant
teams.
Main Report
Volume 1
Figure 2: Participatory CDP Preparation Process
PROJECT OBJECTIVES
Participatory Review of the CDP and its Investment Program

Strengthen Institutional Development within government, nongovernment agencies and civil society to identify, prioritize and plan
infrastructure projects through targeted training.
Assist the CoC to Prepare a Marketing Strategy and Plan
Review CDP and its Investment Plan
Review Existing Situation

based on available reports /
documents
Review Vision & Strategies of CDP

within the framework of Master Plan
Study Second Master Plan

& its linkages with CDP
PARTICIPATORY CONSULTATIONS
Opportunities & Constraints

Rapid Analysis
Review Socio-Economic,
Physical (Natural &
Infrastructure), Institutional and
Financial Framework
Review current situation &

examine infrastructure
investment plan
Formulation of the
Development VISION
for the CDP
Elaborate Development
Strategies of the
Second Master Plan
CONSULTATIONS
Identify gaps in the current

investment programme
through participatory
consultations
Analyse projects identified in

CDP and assessment of their
economic & financial viability
Review and study to

enhance the capacity
building through institutional
development
Design Capacity Building
Programme for key agencies
Identify High Priority Infrastructure Projects

CONSULTATIONS
Prepare Draft CDP & Investment Plan
CONSULTATIONS
Finalise CDP & Investment Plan
Prepare Marketing Plan for the CoC for High Priority

Infrastructure Projects
Main Report
Agreed Capacity Building

Programme & Initial
Implementation
Volume 1
Table 2: Stakeholder Input Summary Formal Events

This Table summarises key Stakeholder Inputs and CDP responses. A complete listing of inputs is presented in Volume 2.
S.no.
1.
Event
Date
Workshop: North
8 Nov 2008
Chennai Consultation on
CDP Review
Key Stakeholder Inputs
How CDP is Addressing
Transport: improve container yards and parking for trucks

related to Port activity. Dangerous and congests local
roads.
Elevated Highway Already proposed/started by Highways, CDP

is incorporating this project and addressing related community
development needs
Transport: improve rail-bus connectivity
Promoting Mobility Hub Type of projects
Transport: improve mobility on Tiruvottiyur High Road
CDP including this as GAP project
Transport: upgrade Royapuram Station, extend Metro Rail
CDP including this as GAP project
Water & Sanitation: comprehensive improvements including Gap" water and sanitation projects identified with increased
solid waste management required.
attention to SH participation. SWM is sector priority #1 after
Institutional with special PFS work underway
Several micro projects suggested.
Environment: improve Buckingham Canal & environs.
Health hazard, needed for flood control and possible
recreation
Special attention through Water Ways PFS component and

linked to work on revised Slum improvement proposals
Solid Waste Management: improvements needed

throughout including rehab for landfill at Kodungaiyur
Priority attention through SWM PFS work and identification of

SWM as sector priority #1.
Environment: prevent coastal erosion, stabilise beach
Indirectly addressed through focus on Water Ways

management and drainage
Economy: dedicate Fisheries Harbour to small boats only
Not directly addressed
Environment: address all forms of air, land, water pollution

created by urban and industrial activities. Local health
issues evident.
Environment established as priority planning base layer.

Growth management proposed
Social-Economic: basic services desired to slums and

fishermen settlements. Skill development, basic
infrastructure, social assistance related to crime, alcohol
and drug abuse. Several micro projects suggested.
Increased emphasis in CDP on recognition and attention to

informal sector needs. Re-programming of TNSCB to address
socio-economic concerns proposed. Sensitive Urban Renewal
a priority
Governance: need better integration of government agency Institutional proposal for an over-arching MPA to coordinate all
activities to address issues, particularly transportation.
activities. Also implement Transport Management Authority
Main Report
S.no.
2.
3.
Event
Workshop: CDP Review

with Chennai Municipal
Corporation Mayor and
Councillors
Workshop: Formal
Sector Economy and
Mobility Infrastructure
Main Report
Volume 1
Date
20 Dec 2008 Environment: Drainage and flood control a priority
Water Ways project elevated to PFS level as recognized priority

for health and safety of all.
Water & Sanitation: Augmented/modernised water supply

CDP identifies full range of "gap" filling projects, including
and sewerage systems required. Hard and soft components reformed/strengthened institutional structures
7 Feb 2009
Transportation: Integrated transportation plan needed.

Optimise road space usage. Multi-level parking.
"Optimisation" of transport infrastructure is priority approach

considering needs of all street space users
Water & Sanitation: Local level safe drinking water,

sanitation and mosquito eradication
CDP identifies full range of "gap" filling projects, including

reformed/strengthened institutional structures
Socio-Economic: slum upgrading & rehab, access to

affordable housing and facilities for livelihood and skill
upgrading
Revised, comprehensive approach to upgrading slums with

socio-economic concerns at the forefront recommended. Needs
re-programming of TNSCB.
Also addressed under Urban Renewal.
Formal Sector Economy

Institutional: SMP and CDP cover only small portion (1,100 Regional Plan recommended in CDP.
2
2
km ) or actual development activity area (+4,000km ). Need
wider regional planning.
Institutional: Ribbon development needs to be replaced by
grid development to control land values
Macro Growth Management Strategy suggests concentrated

Growth Points with improved supporting infrastructure
Institutional: Lack of institutional capacity and planning

leading to increase in slums.
Institutional Structure and Governance is the #1 Priority Sector

for investment and strengthening.
Many recommendations included in CDP.
Economic: strategies required for rural-urban and formalinformal economic linkages.
Macro Level Growth Management Strategy in CDP as starting

framework with need to formally recognize informal sector as
critical to economy.
Institutional: Good institutional structure needed to design,

implement PPPs
PPP experience and opportunities, particularly for infrastructure

development, addressed in CDP
Institutional: Effective Governance model needed to

manage fast growing metropolis
Addressed throughout the CDP with priority Sector investment

in Institutional Development
S.no.
Event
Volume 1
Date
Transport: Transportation Plan prepared for 2011 was

comprehensive and should be adopted
CDP has taken this into account while recommending projects
Transport: MRTS needs optimisation
Promoting relocation of all MTC Bus Transit Nodes near MRTS
Economy: Tourism potential needs developing
Not directly addressed in CDP except through reference to

environmental management and heritage resource preservation
Social: Education infrastructure, quality needs attention
Not directly addressed in CDP
Economic: small business (many informal) needs access to CDP emphasises throughout need to formally recognize and
land title and credit
support needs of the informal sector - housing and business
Institutional: ULB's fail to maintain industrial estate
infrastructure.
Addressed through Institutional Capacity Building Programs
Social: housing required near industrial estates
CDP identifies need for comprehensive and integrated physical

planning throughout to replace current ad hoc
Economy: banks not following government guidelines re:

small business credit
Economy: need gov't. policy on land, working space for

small & micro business (much of it informal)
Strong recommendations for recognizing and providing urban

space for the informal sector. Road Optimisation and Urban
Renewal project proposals
Institutional: need project continuity between political

changes
Addressed under Institutional Structure and Governance
Mobility Infrastructure
Institutional: Metropolitan Transport Authority should
become effective to coordinate inter-modal transport
Main Report
Design guidelines required for user-friendly sidewalks and

urban roads
CDP is recommending to develop Design Standards for

Chennai City
Implement effective traffic management
Transportation Management Centre is the recommended

approach in CDP
Storm water management required
Storm water Treatment/ Flood Attenuation Ponds is the

recommended method.
Parking policy and implementation required
CDP addressing this in Optimization Section
S.no.
Event
Volume 1
Date
Planning required to accommodate informal sector
Encroachments need to be removed
Road network plan needed for City, CMA with missing links CDP addressing this as GAP Project
identified
4.
Workshop: Public
Consultation on the
Informal Sector
Public consultation should be mandatory and transparent

especially for cost-intensive projects.
Alternative plans should also be prepared.
Public Participation proposed to be institutionalised into all

planning and development exercises.
New bus routes identified by upgrading existing roads
CDP is addressing this as GAP Project
Bus fleet should be augmented and service improved
CDP is recommending mini Buses and A/C service partly in

existing buses and routes simplification based on direction with
color code.
Capacity building required for all transport agencies
Addressed as priority under Institutional Structure and

Governance
New projects should start with sound analysis of existing

socio-economic and physical conditions
CMDA coordination proposed for all planning and development

projects
14 Feb 2009 Institutional: Formal allocation of space and resources

required in the city for informal sector workers including
space for housing and space for working

space for the informal sector.
Road Optimisation and Urban Renewal project proposals
Water and Sanitation: Appropriate infrastructure

CDP identifies full range of "gap" filling projects. Combined with
requirements need to be provided. e.g. water and sanitation recommendations to provide informal sector with recognised
at markets
urban space
Institutional: Workers conditions, health and safety need to
be improved
not directly addressed in CDP
Social: Facilities required for women workers - day care

centres, etc.
not directly addressed in CDP, but implied in revised

approached to slum upgrading and urban renewal
Institutional: Require policies protecting women from abuse not directly addressed in CDP
in the work place
Transportation: needs of non-motorised modes of transport
need higher priority and formal recognition
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CDP promoting improved street space for pedestrians, bicycles

and other non-motorised transport
S.no.
Event
Volume 1
Date
Economy/Transportation: informal sector needs street

space in orderly, optimised fashion

space for the informal sector.
Road Optimisation and Urban Renewal project proposals
Transport: workers need more buses as most affordable

option
CDP recommending Mobility Hub and Common Ticketing which

will reduce the price considerably
Transport: public transport should accommodate

specialised workers' tools, equipment
addressed via support for informal sector
Transport: Flyovers need careful analysis to ensure they

don't cause more problems than they solve
CDP is proposing to engineer the Fly Overs based on

International Standards of Practice
Institutional: National Urban Transport Policy and National

Policy on Street Vendors should serve as guides
CDP is recognising Informal Sector as critical and requiring

street space.
Addressed in Project designs.
Transport/Institutional: private motor vehicle users should

pay for road and parking space
Main Report
Social/Transportation: slum dwellers subject to relocation

should receive free bus passes
Revised approach to slum upgrading proposed based on socioeconomic needs. Will eliminate distant relocation
Economic/Social: improved access to formal credit needed

for informal sector
Social: comprehensive health care, ration card programs,

other social security benefits required for informal sector
Institutional: formal land tenure should be provided to slum

dwellers. Supports investment in improved housing.
Revised approach to slum upgrading proposed based on socioeconomic needs and formal recognition of the informal sector
as integral part of the city.
Institutional: Transparency required in all projects
CDP stressing the importance of Good Governance
Institutional: Government needs to commit to fully

participatory project planning processes.
CDP proposals to institutionalise Stakeholder Participation

through all phases of all development projects
Social/Economic: housing and infrastructure projects for

lower-income should take place through people's
organisations, NGOs, etc. with collaborative efforts
Revised approach to slum upgrading proposed based on socioeconomic needs and formal recognition of the informal sector
as integral part of the city.
Participation key. Also addressed under Urban Renewal
11
S.no.
5.
Event
Workshop: Institutional
Structure and
Governance
Volume 1
Date
Institutional: privatisation of infrastructure services should

be avoided as it leads to lower wages and unemployment
Implementation options are analysed for all sectors.

Privatisation recognised as not always the answer
Institutional: laws attempting to restrict informal sector banning street vending, bullock carts, etc. should be
removed
CDP recommendations for recognition of the informal sector

and official "space in the city".
Institutional: government generally needs to take a more

"humane" attitude towards the informal sector.
Remove opaque evictions, resettlement, harassment of
women and bribe extortion by police and other officials
Addressed in Institutional Capacity Building
29 May 2009 The present Governance system in Chennai is highly

fractured and unless restructured cannot deliver a better
Chennai
Addressed in CDP.
A strong-Mayoral system is the imperative for effective and

citizen-oriented governance
Addressed in CDP.
The present rural-urban ambience should be sustained

through institutional means.
Addressed in CDP.
Urban reforms to set in motion a faster pace of sustainable, Addressed in CDP.

equitable, environment-based Chennai
Setting up of MPC by introducing professional and NGO
expertise is an urgent need
Addressed in CDP.
ULBs should have greater autonomy to function as urban

local governments and not as wards of state government
Addressed in CDP.
Financial intermediary should factor in the core

competencies of TNUDF/TNUIFSL
Addressed in CDP.
Present bureaucratic system of governance is not

Addressed in CDP.
conducive to sensitive handling of the informal sector both
in shelter and economic activity.
A democratized and sensitive ULG only would take note of
the needs of this sector which is an important constituent of
the city.
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S.no.
Event
Volume 1
Date

Building of capacity at all levels of local government and
providing a high level assistance to them through
competent professionals in implementing projects and
delivery of services becomes a prime need.
Review of Draft CDP

2009
16 Sep 2009 Difference between SMP and CDP Planning framework
Suggestions made in the workshop on relocation of slum

dwellers and informal sector Involvement of primary
stakeholders in planning and decision making process.

Addressed in CDP.
SMP sets out the key development strategies and principles.

CDP 2009 consolidates and elaborates the SMP development
strategies in graphic form to illustrate a Macro-Level Planning
Framework.
Strong recommendations made for recognizing and providing
urban space for the informal sector in the CDP 2009.
Recommendations made on ensuring full participation of
primary stakeholders, particularly women, in planning and
decision making as a pre-requisite for any slum improvement or
resettlement process in the CDP 2009.
CDP 2009 document should be made public.
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CDP 2009 recommends that the Plan must be moved into the
public domain providing wide opportunity for a thorough review,
comment and understanding.
Volume 1
Part A: Goals, Objectives, Principles and Strategies

5.
Vision Statement
The vision for the future of as stated by CMDA in the original CDP and SMP is to:
"Make Chennai a prime metropolis which will become more liveable, economically
vibrant, environmentally sustainable and with better assets for the future
generations."
6.
Goals and Objectives

This review of the CDP has three prime objectives:
1.
To conduct a participatory review of the Corporation of Chennai's (CoC) City

Development Plan and its investment program to be submitted under the JNNURM
funding.
2.
To strengthen institutional development within government, non-government agencies

and civil society to identify, prioritize and plan infrastructure projects.
3.
To assist the CoC prepare a marketing strategy and plan, with an emphasis on linking
CoC to financing institutions and infrastructure projects within it.
These objectives may be interpreted as having an overall goal:

"To improve the social, economic and environmental conditions for all residents of
the Chennai Metropolitan Area."
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7.
Volume 1
Guiding Principles
To support the specific Development Strategies presented in both the original CDP and Second
Master Plan, two sets of Guiding Principles are presented to serve as monitoring and evaluation
checks. The first set of Guiding Principles addresses preparation of the CDP.
7.1 Principles - CDP
Preparation of the CDP must be consultative and participatory involving a full range of
stakeholders.
Preparation of the CDP must integrate planning and development needs across all levels
of government, across and between all sectors and between existing and planned
projects.
CDP recommendations must be locally appropriate, acceptable, implementable and

affordable.
The CDP must recognize the needs of the full spectrum of socio-economic groups
The CDP must encompass the full range of economic sectors including formal and, in
particular, the informal, the latter being the greatest provider of employment and
entrepreneurial opportunities.
Planning must be integrated through all levels of governance: civil society, ULB, CMA,
State and Nation;
CDP recommendations must encompasses consideration of environment, gender and

sustainability.
Preparation of the CDP should incorporate the greatest possible level of local capacity
building and technology transfer.
Preparation of all projects will be done with an understanding of the "Project Cycle" in
mind. See Figure 3 below.
Figure 3: Typical Project Cycle
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The second set of Guiding Principles addresses the outputs of the CDP and the future form of
Chennai:
7.2 Principles - The Form of Chennai
8.
There must be a balance between development and environment;
There must be a balance between heritage and development;
Development must provide convenient access for all to a full range of economic
opportunities and social amenities;
Chennai should be re-enforced as the "heart and soul" of the CMA and the state;
The natural area "lungs" of the CMA must be sustainably managed for the health of all;
Maximum use should be made of existing (or rehabilitated) infrastructure in existing builtup areas before new land is developed. i.e. urban sprawl should be minimised;
Development must be strictly "managed" in all parts of the CMA to eliminate the current
trend of inefficient, destructive, ad hoc expansion;
Elements of the City must be integrated so that the goals of one sector do not impede
the goals of another;
Poverty Reduction, Infrastructure and the CDP

Integrating all of the goals, objectives and efforts of the CDP and related urban development is
a focus to reduce poverty. Poverty reduction is a national priority supported by numerous
policies and programs. Adequate infrastructure - physical and institutional - is an essential
element and the focus of the CDP. Poverty is a cycle or series of cycles that need to be broken.
Poor water and sanitation lead to poor health and inability to apply personal energy to
productive tasks; low production limits family income; low income means poor shelter; lack of
mobility keeps producers and markets apart; poor communication hampers education and
knowledge exchange; poor or unenforced legislation fails to protect the labour force from
exploitation; and the list goes on. Incrementally and sustainably breaking these poverty cycles is
what the judicious development of locally appropriate infrastructure is intended to do. However,
it must be locally appropriate catering to the socio-economic realities of the majority; affordable,
locally manageable, and incrementally improvable. Achieving this requires a combination of
stakeholder participation, and appropriate institutional capacities guided by informed and
supportive policy and enforceable regulation. The CDP addresses these issues. Lying behind all
of this is the crucial need for political will and transparent governance.
9.
Environment, Climate Change and the CDP

Regardless of how it is officially recognized or ignored, the underlying basis for future social and
economic development is the health of the environment. The CDP directly addresses the need
for significantly improved awareness and serious environmental management action at all
scales by both public and civil society players. Chennai alone cannot solve the larger global
issues of climate change, but will be among the first to feel the affects of rising sea levels, and
through dedicated effort can make significant contributions to solutions, including acting as a
model of sustainable action. Specifically, the CDP addresses:
Main Report
A Macro-Level Growth Strategy is presented that emphasises management of land and

water resources, while concentrating development, infrastructure and live-work
relationships in environmentally responsible ways;
17
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Integrated institutional reforms and policies to prevent cross-purpose environmental

destruction;
Optimisation of developed lands and infrastructure is put forward as the priority
investment to maximise existing and limit the need for new "greenfield" developments;
Transportation emphasis placed on mass public transit and improved road space
utilisation;
In-situ upgrading, urban renewal and integrated development all support improved urban
environmental conditions at the local scale;
Sectoral investment priority is given to environmental issues of Solid Waste Management,

Water Ways Management, Water, Sanitation and Road Way Optimisation/Upgrading as a
major contributor to drainage and pollution problems;
Recommendations for institutionalised Stakeholder Participation helps ensure that those

with the most to lose environmentally at their local level have a voice in development;
10. Disaster Management and the CDP

Chennai and environs are subject to a number of potential disasters primarily associated with its
low elevation: sea-level rise due to climate change, rogue tides, tsunamis, flooding caused by
rain, earthquakes, fires in high-density informal settlements, etc. The CDP does not include a
Disaster Management Strategy, but does highlight the urgency of having one in place and
makes sector recommendations throughout for more sustainable development. The key to
Disaster Management is to avoid them in the first place, and this is essentially an institutional
and political will issue. In the case of Chennai, Coastal Zone Management is paramount: natural
landscape, vegetation and wetlands left intact to act as buffers and prevent erosion; land use
and infrastructure planning that supports this and prevents development of threatened locations;
urban upgrading that includes drainage and settlement density issues; slum upgrading that puts
personal safety high on the list; planning for all areas of the city to ensure multiple means of
clear egress; designated "safe zones" with emergency support systems in place in advance and
maintained. Preparation of a Disaster Management Strategy is full separate exercise.
11. Development Strategies (from CDP/SMP)

11.1 City Development Plan (2006)
The 2006 CDP does not present an overall Development Strategy. Rather it concentrates on a
series of project specific activities without the framework of a comprehensive strategy. This CDP
2009 addresses that gap in Section 11.3 below.
11.2 Second Master Plan

Development Strategies stated in the approved Second Master Plan include:
1.
Encourage growth outside the CMA on the main corridors.
2.
Strengthen the potential for growth in the three satellite towns of Gummidipoondi,
Thiruvallur and Maraimalai Nagar and creation of new ones near Tiruporur in the south
and near Sriperumbudur in the west.
3.
Create urban foci in the amorphous developments in the City as well as in the outlying
municipal towns incorporating commercial and environmental hubs, heritage precincts
and buildings to develop interesting city images.
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4.
Provide opportunities for development of composite neighbourhoods on the Outer Ring

Road.
5.
Demarcate areas of significant ecological and water resource values for preservation and
conservation.
6.
Institute specific Area Development Projects for upgrading quality of life in City sectors
and neighbourhoods.
7.
Restructure the zoning strategy to promote development.
8.
The main problem of the CMA is excessive concentration of population and economic
activities. The trend of migration for gainful employment is by and large towards the CMA,
resulting in diseconomies of scale. This situation calls for channelization of economic
activities to the other major cities in Tamil Nadu.
11.3 A CDP 2009 Strategy

The following broad Strategy Statements are drawn from those stated in the SMP and the intent
of the 2006 CDP:
1.
The CMA must move beyond the ad hoc development pattern that has characterised
growth to date and replace it with a commitment to a comprehensive, integrated, macrolevel vision of how it wishes to grow and sustain itself in the future;
2.
Planning and development must consider the environment as the fundamental base layer
for sustained, healthy and enjoyable social and economic development;
3.
Planning and development will be a combination of "optimisation" of existing

infrastructure in built-up areas, and strategically identified new development.
Consequently, urban renewal and integrated development projects will become more
prominent investment strategies;
4.
A full spectrum of economic activity will be supported through planning and infrastructure
development with increased attention paid to the needs of the vital informal sector.
Increased investment in Urban Renewal projects is key;
Institutional capacity throughout the CMA is the most critical element in the successful
and sustainable planning, implementation and management of all development.Early and
significant investments in Institutional Reform and Capacity Building are essential prior to,
or at least in parallel with, major capital investments.
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Part B: Development Context

12. Macro-Level Planning - The Planning Area
The CDP 2009 considers two physical areas:
1.
2.
The Planning Area which is the wider area of direct impact on the growth and development of
Chennai; and
The targeted Investment Area, limited to the Chennai Urban Agglomeration (CUA) and
selected other growth points within the Chennai Metropolitan Area (CMA).
12.1 Planning Area Structure

The physical Planning Area comprises 5 components:
1.
2.
3.
4.
5.
Corporation of Chennai - the 'City'

16 Municipalities
20 Town Panchayats
214 Village Panchayats (grouped into 10 Panchayat Unions) which include the
majority of the rural and natural areas;
A series of Satellite Towns lying beyond the CMA.
The actual "growth" of Chennai is already felt well beyond the formally defined CMA area
2
reaching 50-60km and more to the north, west and south covering an area of some 5,000km . A
larger Regional Plan, well beyond the scope of the CDP should look at this next level to truly
begin managing Chennai's long-term growth.
The physical Planning Area is summarised in Table 3 and illustrated in Map 2.
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Map 2: Chennai Urban Agglomeration (CUA)
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12.2 Planning Area Components

Each component of the Planning Area serves a distinct role and is experiencing its own unique
growth characteristics along with its own set of development issues, opportunities and
constraints. These are analysed below to provide insight for determining the preferred direction
for each as its optimum contribution to the overall social and economic development of the
CMA. Section 14 provides demographic details.
Table 3: Planning Area Summary (2009)
Planning Area Component
Area
2
(km )
% of
CMA
Total
Pop. Est.
2009
(1,000s)
Density
(p/ha)
1.
CoC consisting of the City itself
176
15
4,789
272
2.
16 Municipalities
240
20
1,989
83
3.
20 Town Panchayats
156
13
513
33
4.
Balance of the CMA: 214 Village Panchayats in

10 Panchayat Unions including 17 Census Towns
617
52
969
16
1,189
100
8,260
69
5.
Satellite towns lying just beyond the CMA

boundary on main transportation corridors
12.2.1
Corporation of Chennai (CoC)
Total CMA
The City is the "heart and soul" of the Planning Area being the centre of governance, business,
culture, services and facilities, and has the highest population density. Chennai is India's 4th
largest metropolitan area, capital of the state of Tamil Nadu, one of the nation's most important
ports and an education, medical, IT and automobile manufacturing centre.
The city's contemporary history began in 1639 with the establishment of a British post on the
site of the existing Fort George. Chennai (Madras) eventually became the first formally created
Urban Local Body (ULB) in the country. As the city grew in importance, small settlements
emerged, expanded, amalgamated and densified. By 1900 the City of Chennai covered 68km2
with a population of 540,000 persons resulting in an average density of 79 persons per hectare
(p/ha), just over of today's. By the 1940's expansion along main transportation corridors was
well established boosted by construction of suburban rail lines. The situation in 2009 is a
population of almost 4.8 million people within the City's 176 km2 area resulting in an average
density of approximately 272 p/ha. This represents approximately 60% of the CMA's total
population while occupying only 15% of the CMA's land area.
In spite of rapid urbanisation, the City of Chennai's own urban growth rate peaked at 3.5% in
about 1971 and has been in decline since to 1.23% in 2001 and likely lower still in 2009.
Section 12.6 discusses the likely reasons for this.
Chennai's physical structure began with a formal grid plan, but less formal expansion followed
with the result that much of Chennai today is lacking a discernable road pattern or development
hierarchy. Four National Highways and 3 rail lines provide the basis of a development
framework, all radiating from the historic centre. In general, north Chennai tends to be the less
prosperous and less developed section of the City, while the southern part attracts higher
income residents.
12.2.2
Municipalities
Sixteen municipalities surround the City and extend outwards along the major transportation
corridors connecting Chennai with the state and the nation. These adjacent municipalities, along
with many of the CMA's Town Panchayats, accommodate the "overflow" from the City for
commercial and light industrial development, employment opportunities, large institutional
facilities, and less congested, more affordable housing opportunities within reasonable
commuting distance of the City.
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The 16 municipalities occupy approximately 20% of the CMA and contain about 24% of the
population (2 million). Population in the Municipalities is growing at approximately 2.9%, more
than twice that of Chennai City.
The municipalities have, for the most part, grown without benefit of a formal vision, growth
strategy or planning. The results are evident in the general lack of environmental and land use
planning and difficulties in the orderly, cost-effective provision of infrastructure and services.
12.2.3
Town Panchayats
A total of 20 Towns occupy almost the equivalent area of Chennai City itself, 156km2, with a
total estimated population in 2009 of 513,000 and the highest current growth rate of any
Planning Area component. However, the estimated 2009 density is a low 33 p/ha. Again the
reasons for this high development rate are the lower land costs, more breathing space, and the
least amount of planning control. Considerable potential for managed growth exists in many of
these towns, and 18 of them are officially part of the Chennai Urban Agglomeration.
12.2.4
Village Panchayats
2
The balance of the CMA comprises 214 Villages covering a total of 617 km , over 50% of the
CMA area and containing the majority of the area's water bodies, natural areas, remaining
forest and agriculture. This area can be considered the green space "lungs" of the Planning
Area playing a critical role in local watershed management affecting water supply and flood
control. Population growth in these essentially rural areas is almost as high as that of the Towns
and for the same reasons: low land values, limited or no planning/development constraints, and
still within relatively close proximity to the City and other employment areas. Growing reliance
on private automobile transportation makes the commute feasible, if not economically nor
environmentally desirable. Total population in the Villages is estimated at 969,000 in 2009
resulting in an average settlement density of 16 p/ha. Villages are consolidated into 10
Panchayat Unions. Out of the 214 Village Panchayats, 17 are identified as Census Towns potential growth points that may soon be elevated to Town Panchayat status.
12.2.5
Satellite Towns
There are currently 3 developed Satellite Towns lying just beyond the CMA boundary along
major transportation corridors. Two more Satellite Towns are planned. The Satellite Towns
contain large-scale industrial development and employment opportunities contributing
significantly to the state's and nation's economic performance. The Satellites fall outside of the
investment framework for the CDP, but have significant impact on the CMA itself with shifting
live-work relationships, and increased heavy vehicle transportation demands through the CMA,
particularly through the City, to and from port areas. The Satellites, in conjunction with other
urban centres in Tamil Nadu, will continue to absorb regional growth once the sustainable
carrying capacity of the CMA is reached. They require planning and investment now to develop
infrastructure, residential, commercial and social amenity facilities to ensure their full and
sustainable integration.
12.2.6
Natural Areas
Throughout the CMA are numerous Natural Areas in the form of water bodies, rivers, wetlands,
forests, aquifer re-charge zones and agricultural lands. These deserve recognition as a critical
component of the Planning Area, not just left over areas ready for exploitation. While they are
administratively contained within boundaries, they contribute to the well-being of the whole area
and form the base layer for all planning considerations. See Figure 7 in Section 18. .
12.2.7
Growth Corridors
There are 5 major growth corridors currently under development and identified in the Second
Master Plan (SMP) as corridors to be officially supported for future growth. See Table 4 below.
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Table 4: Growth Corridors

Growth Corridor
ULBs (Municipality, Town Panchayat)
North-East Corridor
Madhavaram
Manali
Thiruvottiyur
Kathivakkam
Chinnasekkadu
Western Corridor
Avadi
Ambattur
Maduravoyal
Poonamallee
Valasarawakkam
South-West Corridor
Alandur
Puzhiithivakkam
Pallavaram
Tambaram
Pammal
Chitalapakkam
South IT Corridor
Perungudi
Pallikaranai
Sholinganallur
Map 3 schematically indicates the four Development Growth Corridors.

12.2.8
Land Use
The Second Master Plan (SMP) includes detailed maps of both existing and proposed (2026)
Land Use. These detailed Land Use proposals need to be revisited for consistency with the
Development Strategies as stated in the SMP. Part C consolidates and elaborates these key
strategies and presents them in graphic form to illustrate a Macro-Level Planning Framework.
Land Use details are the subject of more specific Zonal Plans and Detailed Development Plans
emanating from the approved SMP.
12.2.9
Expanding the CMA and Planning Area
Forward thinking by Tamil Nadu officials recognizes that the influence on and by Chennai
extends well beyond the current CMA boundaries. Preliminary discussions are underway to
consider expanding the CMA to include a much larger surrounding area in order to facilitate a
higher level of comprehensive and integrated regional planning. Expansion will likely
encompass the 5 Satellite Towns mentioned in this report and provide an opportunity to more
sustainably manage these and lands between.
12.3 Influences beyond the Planning Area

Beyond the physical Planning Area are a series of other influences that directly impact planning
for the future of Chennai. Chennai is the capital of Tamil Nadu State and India's 4th largest
metropolitan area with a strategic position in international trade of both goods and services.
Chennai is an important centre for the automobile industry producing for both domestic and
export markets, an expanding IT industry relying extensively on global outsourcing, and for one
of India's largest ports. Plans are in place for an additional major port and development of Asia's
largest ship building and breaking facility. All of these factors suggest that Chennai must think
globally, and strive for internationally recognized standards of development in order to further
promote Chennai in the world. At the same time, it must take a diversified approach to
economic development to smooth the impacts of uncontrollable global shifts in demand.
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Map 3: Development Growth Corridors
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12.4 The Investment Area

The "investment area" considered in the Revised CDP is somewhat smaller and limited to the
Chennai Urban Agglomeration (CUA) comprising the City, the 16 Municipalities, 18 out of 20
Town Panchayats and a series of 17 Census Towns recognized as growth points.
12.5 Summary and Implications of the Current Development Trends

The current development and trends in the CMA and the related implications can be
summarised as follows:
For the most part development is occurring on an individual desire basis not well
controlled by a clearly defined, implemented and enforced long-term "vision" and macrolevel planning/development strategy. This results, particularly in areas outside of the City,
in inefficient, ad hoc development. The recently approved Second Master Plan outlines a
series of long-term development strategies to reverse this situation, but requires the
institutional capacity to implement and enforce;
Growth of the City of Chennai is slowing due to declining urban appeal, and resulting in
increased urban sprawl;
Surrounding municipalities, towns and villages are absorbing twice as much new
population growth as the City is;
Critical environmental resources including water bodies, aquifer re-charge areas, water
courses and forests are being lost through ad hoc development and encroachment;
Scattered, low-density development is difficult and costly to provide infrastructure and

services to;
Valuable, close-to-market agricultural lands are being lost;
Planning and development tends to be more reactive than proactive, due in part to a
shortage of funds and the absence of a clear long-term plan;
Increasing number of longer-distance commuters is not environmentally friendly

contributing to increased green-house gas emissions;
A generally degraded landscape - visually & environmentally expanding across the CMA;
Poor overall use of land due to a relative lack of de-facto planning and development
control;
12.6 Global and National Urban Growth Trends

Chennai's growth should be set within a global and national context. The world passed the 50%
urban point in 2008 with urban area populations generally growing faster than national
populations due to rural-urban migration. India's rate of urbanisation averaged about 3% over
the past 50 years while the national population growth rate remained below 2%. In spite of this,
India remains one of the world's more rural countries with the 2006 urban population
representing only about 29% of the total. Tamil Nadu is considerably more urbanised than the
national average with the 2006 population being close to 50% urban1 as the result of an annual
urban growth rate of 3.7%. This has been matched by a negative rural population growth rate
since the mid-1990s. In spite of the heavy state urbanisation rate, the City of Chennai itself has
seen a declining growth rate since 1971. A number of factors likely contribute to this scenario.
Extrapolated from 2001 data, Second Master Plan for CMA, Vol. III, p. 47.
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As the city ages and the population grows, resources available for infrastructure and
amenity management and maintenance fall short of need, urban conditions decline and
those with the means seek more comfortable and less congested places to reside;
Suburban and rural land is typically less expensive than urban land;
New transportation options, in particular increased access to private motor vehicles, allow
people to be more mobile and live further from work, if they choose;
Improved communication technologies allow business and employees to decentralise and

take advantage of more space and lower land/rental costs.
It becomes a downward spiral as the exit of population, typically the middle and higher income,
reduces urban tax revenues and support to local business, resulting in an even less attractive
urban environment;
Many so-called "developed-country" urban centres have gone through this process, but are now
seeing a reversal in trend with the urban core becoming more attractive due to increasing
energy costs, frustration with commuting time and effort, greater concern about global
environmental management, and a desire for easier access to urban social amenities.
Corresponding city government efforts to enhance urban environments also draw people back
to the centre. This becomes an upward spiral of increased urban population better able to
support improved public-sector urban services, which attracts more urban residents.
13. Environment and Disaster Management

13.1 Environmental Features
The majority of the Planning Area's 1,189 km2 is low-lying and flat with the exception of a
number of isolated hillocks in the south west. The Chennai basin includes small rivers, tanks,
reservoirs and lakes. Three significant rivers run through the CMA from west to east - the
Kosasthalaiyar river in the extreme north, the Cooum River through the centre almost bisecting
the city and the Adayar River in the south. All are non-perennial, but have a substantial flow
during the monsoon. The man-made Buckingham canal runs parallel to the coast and connects
these 3 water courses with others to both the north and south. There are about 320 water
bodies of various sizes including 3 major ones, Red Hills, Chembarambakkam and Cholavaram.
Much of Chennai City's water supply is drawn from the Red Hills Lake.
Pallikkaranai is a fresh water swamp adjacent to the Bay of Bengal about 20 kms south of
Chennai city. The swamp and contiguous low lying areas receive run-off from a catchment area
of 235 sq.km. The SMP identifies the Pallikkaranai swamp and the Red Hills catchment areas
as open spaces with development prohibited or severely restricted. Other ecologically sensitive
areas zoned in the Second Master Plan include CRZ areas and Aquifer recharge areas. In the
CMA, developments along the coastal stretches are regulated by the Coastal Regulation Zone
(CRZ) Management Plan (1996), and the Environment (Protection) Act (1986). The
Development Control Rules of the SMP restrict developments in Aquifer Recharge areas.
In the last three decades, most former agricultural areas have been converted to urban
development due to non-availability of water for irrigation purpose, high labour costs and
demand for urban development. Most of the lakes / tanks have been converted as sources for
city water supply. Minimal agriculture is carried out in a few pockets in the south of TamabarmMadipakkam, in the north close to Minjur, and in the west close to Chembarambakkam tank in
CMA. According to the SMP, land under agricultural use has declined from 79,120 ha in 1974 to
12,470 ha in 2006. Less than 2% (24 km2) of the original forest cover remains in the CMA, while
Chennai City has only 2% of its area declared as parks stated in the SMP.
Map 4 shows environmental and ecologically sensitive areas in CMA.
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Map 4: Environmentally/Ecologically Sensitive Areas
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A combination of the topography, lack of forest cover and the large number of human
settlements make monsoon flooding a major annual concern affecting property, infrastructure,
human life and health.
A summary of key environment issues includes:
Adyar, Cooum and Kosasthalaiyar rivers are not perennial in nature and receive flood
discharge only during monsoon season. In the rest of the year these rivers act as a
carrier of wastewater from sewage treatment plants, industry and settlement
encroachment.
Water samples analysed by TNPCB every month from the Buckingham Canal, Otteri
Nallah, Adyar River and Cooum River indicate that all these water bodies are highly
polluted and not suitable for any use including drinking, bathing, animal husbandry,
fishing, industry, cooking, washing or agriculture.
Central Ground Water Board, CMWSSB and PWD monitor ground water levels and
quality. They all conclude that ground water in Chennai City is not suitable for drinking
purposes.
High contamination in Pallikkaranai swamp. The SMP suggests possible water supply or
recreational uses for the swamp. However, serious government effort is required if this
valued environmental asset is to be rescued for any purpose.
A survey conducted by the TNPCB indicates:
Noise level exceeded the limits mostly in commercial areas, mainly due to heavy
(numbers) vehicular movement.
The major source of air pollution in Chennai is the emissions from vehicles (i.e
71.28%) followed by industrial sector (19.70%).
13.2 Agencies Responsible for Environment Management

The Department of Environment (DoE) is the nodal Agency for planning, promotion,
coordination and overseeing the implementation of all the aspects of environment, while the
Tamil Nadu Pollution Control Board (TNPCB) is officially responsible for preventing water, land
and air pollution in line with existing legislation.
13.3 Disaster Management

Tamil Nadu is subject to numerous disaster threats including cyclones and storm surge in the
coastal regions, earthquakes, monsoon floods, landslides, and tsunamis. All of which require
significant advance preparation and continuous readiness on the part of governments and
communities at all levels.
The Chennai Metropolitan Area falls under Seismic Zone III which is classified as Moderate
Damage Risk Zone, and the cyclone prone areas extend to a distance of 20 km. from the coast
in all the coastal districts.
A potentially far more significant impact on Chennai in the not too distant future will be the
impact of sea-rise resulting from global warming. There will be little Chennai can do about this
except be prepared to move.
In CMA, there are significant areas along the rivers, canals and low-lying areas that are
susceptible to regular flooding/inundation during heavy storms. Much of the CMA is low-lying
and flat and mismanagement of waterways over the decades leaves large parts of the area
regularly at risk.
In addition to nature-related disasters, fire is a threat in poorly planned, over-crowded and
under-serviced residential areas. Recent events in Chennai illustrate how rapidly fire can spread
through slums with little means of stopping them.
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The State's Revenue Administration, Disaster Management and Mitigation Department is the
nodal agency for the UNDP-Government of India sponsored Disaster Risk Management
programme, and it is implemented in Tamil Nadu including Chennai Metropolitan Area. The aim
of this programme is to reduce the vulnerability of communities to natural disasters in identified
multi-hazard prone areas. A disaster management cell functions in the City Corporation of
Chennai to tackle flooding problem.
The best approach to Disaster Management is to minimize potential impacts in the first place
rather than wait for them to need management. Land use planning to avoid development of riskprone areas, preservation of natural vegetation, wetland, topographic and other buffers,
management of all natural flood ways and water bodies, multiple means of egress from all
communities, and well informed and organised community organisations can all contribute to
mitigating the risks of disaster.
Refer also to introductory comments in Section 10 on Disaster Management.
14. The Residents of the CMA - Demographic Profile

14.1 Tamil Nadu
Tamil Nadu is officially one of the most urbanized states in India with almost 44% of the total
population of 62.1 million living in urban areas. Much of the rapid increase over the past
decade, however, is due to re-designation of urban areas. The increase in the Town
Panchayats population accounted for about 70% of the total increase of 8.16 million from 19912001. See Table 5 below.
Table 5: Urban Population of Tamil Nadu, 1991-2001
Category
Number
Population in million
Decadal Growth
Rate (%)
1991
2001
1991
2001
7.13
7.91
10.90
Municipalities/ Cantonments
108
104
7.24
8.25
13.95
Town Panchayats
224
611
3.78
9.57
153.23
Census Towns
134
111
N.A.
N.A.
Total
469
832
19.08
27.24
Corporations
42.79
Source: State of Environment Report (2005) by Dept of Environment, GoTN
Tamil Nadus urban population has grown from 2.7 million in 1901 to 27.4 million in 2001. See
Volume 3: Annex 1 for further Tamil Nadu population details.
14.2 Chennai Metropolitan Area (CMA)

Table 6 presents the populations, growth rates, areas and densities of the various components
of the CMA. Demographic details are contained in Volume 3: Annex 1 for Chennai,
Municipalities and Town Panchayats.
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Table 6: Population Growth and Density in CMA

Local Body
Population in Million
1981
Annual Growth Rate (%)
1991
2001
2009
(estd.)
1981-91
19912001
20012009
Area
in Sq.
km
Density/
Ha
2009
Chennai City
3.28
3.84
4.34
4.79
1.58
1.23
1.23
176
272
Municipalities
0.81
1.18
1.58
1.99
3.80
2.91
2.91
240
83
Town Panchayats
0.16
0.27
0.39
0.51
4.94
3.62
3.62
156
33
Village Panchayats
0.34
0.52
0.73
0.97
4.38
3.58
3.58
617
16
4.60
5.82
7.04
8.26
2.37
1.93
1.93
1189
69
CMA Total
Source: Second Master Plan & Population estimation of 2009 by CDP review consultants
The City of Chennai's population represents approximately 58% of the CMA total while
occupying only 15% of the total CMA area. Density varies by Zone as illustrated in Map 5.
The 16 Municipalities have 24% of the population in 20% of the CMA area; Town Panchayats
have 6% of the population in 13% of the area. Map 6 illustrates the variety of Municipal
population densities.
14.3 Population Projections for 2026

The SMP has projected population of 12.6 million by 2026, of which Chennai City alone would
account for 5.8 million. The CDP accepts the 12.6 million total growth projection, but adjusts the
geographic distribution of that growth to be consistent with the Macro-Level Growth Strategy
discussed in the SMP and presented here. See Part C for details.
14.4 Migration
Chennai is experiencing significant out-migration to peri-urban areas. An out-migration of 1
million occurred in the period 1981-1991 and another 1 million in 1991-20012. According to the
SMP out-migration is largely due to conversion of urban residential premises into nonresidential. At the same time many seek lower costs and less congested environments. Outmigration is offset by an almost equal number migrating in, 75% of which are from other parts of
Tamil Nadu. See Volume 3: Annex 1.
On a daily basis Chennai's floating population is estimated at 220,000 including 112,500 people
arriving by train, 83,000 by bus and 20,000 by other modes.
14.5 Age Structure

Age structure of population in CMA as per Census 1961-2001 is given in Volume 3: Annex 1.
The proportion of old age group (above 60) has increased from 4.36% in 1961 to 7.81% in
2001. The proportion of primary school going children percentage has reduced from 12.39% to
7.97% in the same period. About 63% of the total population is under the age of 35 years in
2001.
14.6 Sex Composition

In CMA, the sex ratio is lower (i.e 956 females per 1000 males) than the State average but
much above the National average of 900 in urban areas. See Volume 3: Annex 1.
SMP
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Map 5: Chennai City - Population Density in Municipal Zones, 2001
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Map 6: Population Density in Municipalities
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14.7 Literacy
The literacy levels in Chennai city and CMA were higher than the State average. In CMA, the
literacy rate has increased from 54.8% in 1961 to 76% in 2001. Further details are presented in
Volume 3: Annex 1.
14.8 Slum Population

Chennai city has an estimated 2009 population of 4.8 million. Based on the 2001 rate of 22.8%3,
this means that over 1 million currently live in slums. See Section 28 on Basic Services for the
Urban Poor for a full discussion of slums in the CMA.
Below Poverty Line (BPL) Population
The BPL populations in Chennai City, Kancheepuram and Thriuvallur districts were 9.6%,
13.2% and 19.2% respectively in 1999-2000. In Chennai City, the BPL population has come
down from 31.6 % in 1993-94 to 9.6 % in 1999-20004. See Section 28 on Basic Services for
Urban Poor.
15. Economy
A discussion of the economy in India must equally consider both the formal and informal sectors. The
formal sector is the one that receives the headlines, is the subject of statistical reports on GDP,
employment and general economic health, and theoretically responsible for the majority of tax
revenues. The informal sector, while often dismissed, is, in fact, responsible for the majority of
employment (estimated at 70% in Chennai), and provides goods and services to all residents. The
informal sector is a significant determinant of the overall urban landscape.
15.1 Formal Sector

15.1.1
Overview
Chennai has a diversified formal sector economic base driven primarily by the automobile,
software development and business outsourcing, hardware manufacturing, healthcare, and
financial services industries. Chennai is also home to the Tamil entertainment industry.
Global automobile giants such as Hyundai, Ford, Mitsubishi, TVS, Ashok Leyland, Royal
Enfield, TI Cycles, Dunlop, and MRF have their manufacturing units in and around Chennai
accounting for 30% of India's auto industry and 35% of its auto component industry.
Tamil Nadu accounts about 70 percent of leather tanning companies in India and 38 per cent of
leather footwear and components. Most of the leather based industries are located near
Tambaram. Garment manufacture industries are located in the Ambattur-Padi industrial zone in
the northern suburbs of the city. Map 7 shows concentration of industries in CMA.
Chennai city alone accounts for 10.9 per cent of the State income. The per capita income of
Tamil Nadu State is Rs.21,738 in 2002-03.
The percentage of the workforce in the primary sector declined from 25.9% in 1980-81 to 16%
in 2002-03. The percentage share of the secondary sector also declined from 33.5% in 1980-81
to 29.7% in 2002-03. There was a corresponding increase in the growth of the tertiary sector
from 40.6% in 1980-81 to 54.3% in 2002-03. This clearly shows that there is a shift in the
economic structure of the CMA from agricultural and manufacturing and service sectors.
3
4
2001 Census
Department of Economics and Statistics
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Map 7: Industrial Developments
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15.1.2
Volume 1
Government Policy / Initiatives
The State Industrial Policy 2007

Highlights of the Industrial Policy, 2007
The State Government is now focused on

stimulating further industrial development,
attracting investment, facilitating new
manufacturing capacity and enabling
global manufacturing competence and
competitiveness of local industry. In 20062007,
the
manufacturing
sector
contributed 20.23% to Tamil Nadu's
GSDP,
while
the
service
sector
contributed 59.1% of Tamil Nadu's GSDP
(measured at constant prices).
According to the new policy, the
government hopes to create an additional
2 million jobs by 2011 and raise the
contribution of manufacturing sector to the
gross state domestic product (GSDP) to
27 per cent from 21 per cent.
Government would create a land bank of 10,000

acres over the next 5 years for industrial parks.
Promoters of private industrial parks would be
required to purchase land directly. The land should,
as far as possible, be barren, non-irrigated and dry
land and the government will not allow proposals for
industrial park involving more than 10% cultivable
land.
10% of the area in the new industrial parks promoted
by SIPCOT and TIDCO should be set aside for social
infrastructure.
State by giving fiscal incentives encourages
development of industrial estates/SEZs in industrially
backward areas and away from Chennai, Tiruvallur &
Kanchipuram districts
Setting up of several SEZs in the state
Chennai-Manali-Ennore corridor and ChengalpattuSriperumbudur-Ranipet corridor will be developed
into industrial corridors of excellence with SEZs,
industrial and IT parks, R&D
Information Technology
Tamil Nadu has an 11% share, (US $ 5.7 billion) of the total Indian ICT production of US $ 51
billion. The New State IT Policy aspires to increase that to a 25% share of Indian ICT production
by year 2011. Tamil Nadu was one of the first states in the India to formulate a comprehensive
IT policy. As early as 1997, the State Government released an Industry-specific Policy for the IT
industry to achieve the goals spelt out in the Ninth Five Year Plan and to focus attention on the
IT industry as an engine of growth in the State. Tamil Nadu has been amongst the top three
States in terms of ICT investments and production and has emerged as a hub for software,
hardware and R&D.
According to the Department of IT, Tamil Nadu continues to register remarkable progress as a
preferred destination for the Information Technology sector. The Software export from the State
was Rs. 207,000 million in 2006-2007 and expected to exceed Rs. 280,000 million in 20072008. So far, 37 IT-ITES SEZs occupying 1,226ha have been given formal approval by the
Government of India. Out of these, 19 have commenced operation. In addition, 1 Multi Service
SEZ (121 ha) and 2 Multi Product SEZ (2,192 ha) have been given formal approval.
Growth of the sector is expected to add approximately 3 million direct and indirect jobs to the
current 0.8 million by the year 2011.
15.1.3
Key Industrial Agencies
There are a number of Industry support agencies established by government addressing

different issues and different sectors including:
SIPCOT: State Industries Promotion Corporation of Tamil Nadu Limited
SIDCO: Tamil Nadu Small Industries Development Corporation Limited
TIDCO: Tamil Nadu Industrial Development Corporation Limited
ELCOT: Electronics Corporation of Tamil Nadu Limited

See Volume 3: Annex 2 for details of these agencies and their activities.
15.1.4
Tourism
Chennai and its surrounding have a number of places of interest to attract domestic and foreign
tourists. The city and surroundings are well recognized for their temple architecture and cultural
heritage. Mahalapuram is a temple town located close to Chennai on the shores of the Bay of
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Bengal, along the Indian eastern coast. It is known for its architecturally brilliant monuments,
caves and beaches and has the famous shore temple. The St. George Fort, built in 1653, is a
famous landmark of Chennai and is currently used as the state government's secretariat.
Chennai is famous for its classical dance called Bharathanatyam. Kalakshetra at Tiruvanmiyur
is the main cultural centre for Bharatanatyam. This centre is recognised as one of the best
academies of Indian dance and music. In every year, Chennai organized a five weeklong Music
Season in December.
15.2 Informal Sector

For the majority of the population the informal economic sector is the most important one. It
accounts for somewhere in the order of 70% of Chennai's employment (The SMP estimates
about one million informal workers) and provides a significant amount of the shelter, economic
opportunity, food, transportation and other services. The informal sector is typically associated
with the lower-income, but all sectors of Chennai's population, including the formal business
sector, relies daily on informal sector services.
The informal sector is generally defined as the collection of survival activities taking place
outside of the benefits and constraints of formal government support, regulation and control.
Informal sectors exist in all economies but are strongest where the gap between the institutional
and regulatory environments, and the realities of daily life are the greatest. In other words, the
informal sector exists because the formal environment is failing to provide appropriate
institutional "space" and recognition for the needs of a population segment. Everyone needs
shelter, food and other basic services, If the formal sector "system" cannot provide an
acceptable and affordable means of acquiring these, then the "system" is simply circumvented.
This is why slums exist and the streets are full of vendors, hawkers and rickshaw wallahs.
Informal employment may include:
all non-regular wage workers, who work without minimum wages, assured work or
benefits;
virtually all self-employed persons (except professionals and technicians);
petty traders, small producers, micro-entrepreneurs, domestic workers, home-based
workers, and casual labourers including shoeshine boys, rickshaw pullers, home-based
garment and other piece workers, small repair services, street vendors, and personal
services;
self-employed traders, fishermen and family-based workers;
employees and workers in comparatively better wage paying occupations such as
construction and manufacturing but without formal employment contracts.
The line between formal and informal is a gray one. Low-income daily wage earners are part of
the "informal" sector even though they may be employed by large, formal sector companies.
They have no job security, no benefits, no formal tax. Street children selling goods in the traffic
may be agents of a formal shop. Street hawkers blocking the sidewalk may be branches of a
formal shop. Often, however, there is conflict between the formal and informal as the formal see
their own market and space being challenged. On the one hand governments do not like the
informal sector because it appears "messy", is not part of the formal tax base, does not follow
regulations, but still utilises formal infrastructure. Officially, government would like to eliminate
much of the informal sector activity. On the other hand, everyone relies on the informal sector
and collection of informal "taxes" by formal sector officials is common. Maintaining the informal
sector is therefore a lucrative side-business for many in the formal sector and a source of lowwage, unregulated workers.
The informal sector will remain paramount until more attractive and viable alternatives exist.
Access to serviced land and infrastructure must become affordable and bureaucratically simple,
formal sector jobs must be available with regulation and politically will in place to safeguard
labour abuses.
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The informal sector is highly responsive to the market and naturally locates in the best place for
business - the street. Government efforts to forcefully "clear" the informal sector inevitably fail.
Newspapers report vendors or squatters returning within hours or days and state that "the
people don't seem to learn". In fact, it is government that does not seem to learn. Only through
sustainable recognition and socio-economic development will the situation be altered.
The informal sector needs space in the city and proposals are put forward in several sections of
this Revised CDP to address this.
A CDP Workshop on the Informal Sector was successfully conducted during preparation of the
Revised CDP with an extensive number of concerns and recommendations presented. Refer to
Volume 2 for the full Workshop report and to Section 28 for a full discussion of poverty and
informal sector shelter.
The informal sector is, and will continue to be, a critical component of the City. Over 1,200
slums accommodate approximately 23% of the City's population and all lack full access to
adequate shelter and services. Informal settlement, through no particular fault of the residents,
contributes to choking of the city's water ways, encroachment on sidewalk and road networks,
disruption of what should be public open spaces, and general degradation of the urban
environment, while themselves suffering even worse repercussions.
16. Institutional Structure and Governance 5

Planning, Development and Environment related functions of Urban Local Bodies (ULBs), come
under the ambit of a vast array of Ministries, Departments, Institutions and Agencies ranging
from Government of India (GoI) at the top to the Village Panchayat at the bottom.
16.1 Government of India

Housing and Urban Development responsibilities are assigned by the Constitution of India to
the State Governments. The Constitution Act (74th Amendment) further delegated many of these
functions to the ULBs. Resources are provided through a variety of nationally and externally
funded schemes. Policy and programme contents are formulated in Five Year Plans. The
indirect effect of the fiscal, economic and industrial location decisions of the GoI exercise a far
more dominant influence on the pattern of urbanisation and real estate investment in the
country than do direct urban policies.
The Ministry of Urban Development and the Ministry of Housing and Urban Poverty Alleviation
are the apex authorities of GoI to formulate policies, sponsor and support programmes,
coordinate the activities of various Central Ministries, State Governments and other nodal
authorities, and monitor the programmes concerning all the issues of urban development and
housing in the country. Numerous other agencies, including transportation and environmental,
also have significant impact.
16.2 Government of Tamil Nadu

Local Government is a State subject. In the State Government of Tamil Nadu this subject is in
the jurisdiction of the Department of Municipal Administration and Water Supply (MAWS) which
is headed by the Minister for Local Administration.
Sections on Institutional Structure are drawn from the following: http://urbanindia.nic.in/moud/moud.htm; http://mhupa.gov.in/;
http://www.tn.gov.in/department/maws.htm; http://www.chennaicorporation.gov.in/; http://www.tn.gov.in/cma/;
http://www.tn.gov.in/dtp; http://www.chennaimetrowater.com; www.tnudf.com/tnuifsl.html; www.tnudf.com; www.unhabitat.org;
http://www.allacademic.com; Sustainable Chennai Project documents; JNNURM - Toolkit.
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16.2.1 Municipal Administration and Water Supply Department

The administrative structure of the Department of MAWS is shown in Figure 4 below.
Figure 4: Municipal Administration and Water Supply Department
16.2.2
Commissioner of Municipal Administration
The Commissioner of Municipal Administration is responsible for 6 Municipal Corporations and

102 Municipalities in the State. In the CMA there is one Municipal Corporation and 16
Municipalities.
16.2.3
Directorate of Town Panchayats
The Directorate is responsible for local government affairs within 20 Town Panchayats in the
CMA. Detailed responsibilities are listed in Section 16.6.2.
16.2.4
Corporation of Chennai (CoC)
The CMC was established by the Madras Municipal Corporation Act, 1919. CMC is
administered directly by the Municipal Administration and Water Supply Department of
Government of Tamil Nadu. Representative democracy is practiced with Mayor-in-Council. The
Corporation has 155 wards in 10 Zones.
16.2.5
Chennai Metro Water Supply and Sewerage Board (CMWSSB)
CMWSSB was constituted in 1978 to attend to the growing need to address public health
concerns through for water supply and sewerage services in the Chennai Metropolitan Area.
Service limits were originally confined to Chennai City Limits, but now include the entire CMA.
16.2.6
Tamil Nadu Water Supply and Drainage Board (TWAD)
TWAD continues to be the main implementing agency for all water supply and sewerage
schemes outside the CMA complementing the work of CMWSSB within the CMA.
Other State Government agencies having a bearing on ULBs functioning are Departments of
Housing & Urban Development, Public Works, Environment & Forests, Transport and Energy
Rural Development and Panchayat Raj as well as the parastatal organizations that come under
their jurisdiction.
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16.3 Chennai Metropolitan Area (CMA)

Sustainable planning and development of the CMA requires full participation by a variety of
public and private sector organisations, NGOs and CBOs, educational institutions and the
media; a comprehensive legal framework; and integration of specialized agencies dealing with
land use, infrastructure, housing and environment. Key players include:
Local Agencies includes urban local bodies (ULBs) such as Chennai Corporation,
Municipalities, Town and Village Panchayats.
Specialised Agencies at the Metropolitan level (e.g. Chennai Metropolitan

Development Authority), the State level (e.g. Tamil Nadu Housing Board) and National
level (e.g. Housing and Urban Development Corporation).
State Government Departments such as the Departments of MAWS, Public Works,

Housing and Urban Development, Transport, Environment and Forests, etc.
Central Government Departments, such as the Ministry of Urban Development & the
Ministry of Housing and Urban Poverty Alleviation, Railways, Industries, Environment and
Forests, etc.
Non-Government players.
Decentralisation of functions and responsibility has increasingly been recognized as being

central to effective implementation, with full participation by the public and the various actors.
16.4 Corporation of Chennai (CoC)

The Corporation of Chennai is the Oldest Municipal Institution in India established on 29th
September 1688. The Madras Municipal Corporation Act, 1919 provides the basic statutory
authority for the current administration.
16.4.1 Executive Functioning
1.
The elected executive set up the Corporation is represented by 155 ward councillors
(organized into 10 Zones) with an indirectly elected Mayor.
2.
For the efficient performance and the functioning of Corporation, in accordance with the
provisions of the act following authorities of the Corporation have been constituted:
3.
Main Report
Council
Mayor
Standing Committees
Ward Committees
Commissioner
Tamil Nadu Government has also constituted the following Six Standing Committees Accounts; Education; Public Health; Town Planning; Works; Taxation & Finance - besides
one Appointment Committee in addition to the Ward Committees for each Zone. See
Figure 5 below.
41
Volume 1
Figure 5: CoC Executive Set-up Standing Committees
4.
The Standing Committees consist of 15 Members each elected by the Members of the
Council in a Meeting specially convened for that purpose and the Chairman of each
Standing Committee is elected from among the members of such Committee. The Mayor
is the ex-officio member of every Standing Committee constituted under the provisions of
the Act.
5.
Appointment Committee consists of the Mayor as the Chairman and the Commissioner
and two members of the Council as members.
6.
There are Ward Committees in every Zone in which the Councillors of respective Zones
are the members who will elect one among them as the Chairman. The tenure of the
Members as well as Chairman of all the Committees is 5 years from the date of election.
7.
In addition to the above Committees, Government has also constituted Joint Committees
under the Chairmanship of the Mayor to enable the Civic administration to redress the
grievances of the general public in various fields such as water supply & drainage, slum
clearance, fire services and MMDA. Those Joint Committees have limited members of the
Council and meet at specific intervals under the Chairmanship of Mayor.
8.
Business Advisory Committee: for solving important issues raised in the Council. It has
been formed under the Chairmanship of the Mayor and meets whenever the Chairman
desires.
16.4.2 Administrative Functioning of CoC

Details of the Administrative Structure and functioning of CoC are presented below.
(i)
Council Department: The Council Department is headed by a Council Secretary. This

department functions as the Secretariat of the Council, the Mayor and the various
standing committees. It aids the Mayor in the discharge of his duties as well as the
Council and Standing Committees.
(ii)
General Administration: This department is in charge of the Personnel and

Administrative matters for the Corporation as a whole. All the appointments, promotions,
training, retirements, settlement of post retirement benefits, staff discipline, etc. are taken
care by this department headed by an Assistant Commissioner at the Head Quarters.
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(iii)
Financial Management Unit: It is headed by Financial Adviser. The Officer is deputed

from the Finance Department of the Secretariat. Preparation of Corporation Budget,
Receiving Loans & Grants from Govt. and overseeing and controlling the expenses of the
Corporation are the responsibilities.
(iv)
Land & Estate Department: Headed by a District Revenue Officer. Leasing out
Corporation Lands, buildings, renting out Shopping Complexes are the responsibilities of
this department.
(v)
Revenue Department: Revenue Officer is the head of the department. He is responsible

for the collection of Property Tax, Profession Tax, Advertisement Tax, Collection of
Parking Fees and other Taxes. At the Head Office, Change of Name of Ownership of
Properties, revision petitions against fixation of tax review of progress in collection of
taxes and scrutiny and approval of assessment proposals are being done.
(vi)
Engineering Departments: include Works, Mechanical Engineering, Electrical, Solid

Waste Management, Building, Storm Water Drainage, Bus Routes and Bridges.
(vii)
Health Department: Administration of dispensaries, public health, sanitation, prevention

of food adulteration, issue of birth & death certificates and sanitation certificates.
(viii) Family Welfare Department: Administration of Maternity & Child Welfare Centres,
Family Welfare and Immunization Programmes.
(ix)
Education Department: Administration of schools from elementary to higher secondary,

Community Colleges and Nutritious Meals Centres.
(x)
Parks & Play Fields: Maintenance of Parks & Play fields and Swimming Pools are under
the control of the Director, Urban Forestry Wing.
(xi)
Town Planning Department: Provides approvals for land layout, subdivision, and
building construction under the guidance of the T&CP Act and CCMC Act.
(xii)
Law Department: Handles legal matters for all CoC Departments including acting as the
Public Information Officer applying the Right To Information Act.
16.5 Municipalities in CMA

CMA includes 16 Municipalities.
16.5.1 Municipal Council Structure
Each Municipal Council comprises of elected ward councillors and is headed by Chairperson,
who is elected by voters of the town. The councillors elect a Vice-Chairperson among them. The
executive wing is headed by a commissioner assisted by a team of officials including Health
Officer, Municipal Engineer, Town Planning Officer, Manager, Revenue Officer and others.
16.5.2 Municipal Services and Activities
Municipalities provide the following major services:
Water Supply
Sewerage
Roads
Drains
Street Lights
Public Conveniences
Municipalities also enforce and regulate the following activities:
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Tax administrations
Planning and Building permission
Trade and other licenses
Registration of Birth and Deaths
16.5.3 Municipal Administrative Structure

With minor variations, the administrative structure of Municipalities includes the following:
General Section: Administration, Council, Establishment, Budget, Accounts, Election

Census etc.
Engineering Section: Roads, Bridges, Drains, Parks, Water Supply, Lights and all Basic
Amenities.
Public Health Section: Birth & Death, Solid Waste Management, D&O License,
Sanitation, PFA.
Town Planning Section: Building Permission, Encroachment, Rain Water Harvesting

Installation of machineries.
Revenue Section: Professional Tax, Property Tax, Market Lease and all revenue.
Medical Section: Hospitals, Medical & Child Health Service, Immunization

16.5.4 Oversight Committees
Executive functions are overseen by three committees - Appointment Committee, Contract
Committee, Taxation Appeal Committee comprising of Chairperson, Commissioner and select
Ward councillors.
16.6 Town Panchayats

16.6.1
Executive Structure
The Executive Officer of is assisted by Head Clerk, Junior Assistant, Bill Collector and Typist for
the maintenance of records, collection of taxes, maintenance of assets and implementation of
Government Programmes. The Bill Collector is the administrative head of Town Panchayat
Administration at the District Level.
16.6.2
Functions of Town Panchayats
The Town Panchayats are responsible in delivery of the following civic services:
Providing Basic Amenities: Roads, Street Lights, Water Supply, Public Health,
Drainage
Granting of Building Licenses
Levying of Taxes: Property Tax, Vacant Land Tax, Profession Tax, Water Charges
Issuing Birth & Death Certificates
Issuing Dangerous & Offensive Trade Licenses
Implementation of State / Central Schemes

16.6.3 Sources of Revenue of Town Panchayats
The revenue of the Town Panchayats is derived from the following sources:
Property Tax
Professional Tax
License Fees
Rents
Water charges
Surcharge on Stamp duty
Entertainment tax
Devolution grants from the Government
Other miscellaneous incomes such as interest on deposits
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The Town Panchayats are included in the District Planning Committee to ensure the holistic and
planned development of Town Panchayats, in concurrence with the City Development Plan.
16.7 Village Panchayats

There are a total of 214 Village Panchayats forming 10 Panchayat Unions falling under the
jurisdiction of the Commissionarate of Rural Development and Panchayat Raj Department. This
Department is responsible for the implementation of a variety of programmes for poverty
alleviation, employment generation, sanitation, capacity building, womens social and economic
empowerment in addition to provision of basic amenities and services. The Department also
facilitates the Panchayat Raj Institutions to function as effective units of Local Self-Government.
16.8 Specialised Agencies Associated with Planning & Development in CMA

Figure 6 summarises the structure respective responsibilities of agencies involved in urban
planning and development in the CMA.
16.9 Chennai Metropolitan Development Authority (CMDA)

CMDA is the planning and regulatory body of the CMA. CMDA was constituted as an ad-hoc
body in 1972 and became a statutory body in 1974 vide the Tamil Nadu Town and Country
Planning Act 1971. There are 19 members representing a cross-section of ministries and
agencies involved in urban and regional planning. However, there are no representatives of civil
society. See Volume 5 for details of CMDA membership and functions. In summary, CMDA is
responsible for all planning work including preparation of CDPs, Master Plans, Detailed
Development Plans, New Town Development Plans and related reports.
16.10 The Financial Backbone

16.10.1 Tamil Nadu Urban Finance & Infrastructure Development Corporation
(TUFIDCO)
TUFIDCO was incorporated as a government company in 1990 with the aim of improving the
living standard of the Urban Population by serving as. a Nodal agency for the centrally
sponsored urban infrastructure Development schemes of JNNURM, UIDMMT, IDSMT and
MCP. TUFIDCO also extends financial assistance by way of loans from its own source of funds
under Tufidco Infrastructure Funding Scheme to ULBs.
16.10.2 Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL)
TNUIFSL is a Public Limited Company incorporated in 1996 under the Indian Companies Act.
TNUIFSL acts as a Public-Private Partnership in the urban sector between Government of Tamil
Nadu and three Indian Financial Institutions, ICICI Bank Limited, Housing Development Finance
Corporation Limited (HDFC) and Infrastructure Leasing and Financial Services Limited (IL&FS).
16.10.3 Tamil Nadu Urban Development Fund (TNUDF)
Since 1988, Government of Tamil Nadu has been implementing the Tamil Nadu Urban
Development Project financed by the World Bank. One of the components was the Municipal
Urban Development Fund (MUDF) which has subsequently been broadened into the TNUDF in
1996 to attract private capital into urban infrastructure and facilitate better performing ULBs to
access capital markets. Funding sources are the same as for TNUIFSL. TNUDF is the first
public-private partnership providing long term debt for civic infrastructure on a non-guarantee
mode.
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Figure 6: Planning and Development Agencies in CMA
Local
Government
Parastatals
Agencies
Central
Government
Main Report
Chennai Corporation
Municipalities (16 nos)
Town Panchayats (20 nos)
Village Panchayats (214 nos )
Chennai Metropolitan Planning &

Development Authority (CMDA)
Planning & Co-ordination,
Development Control

(TNSCB)
Providing housing, infrastructure &
livelihood programmes in slums
Chennai Metro Water Supply &

Sewerage Board (CMWSSB)
Providing Water supply &
sewerage facilities
Tamil Nadu Housing Board

(TNHB)
Providing plots, houses, Sites and
services
Electronics Corporation of Tamil

Nadu (ELCOT)
Carrying out major turnkey IT projects
of the Government.
State Industries Promotion

Corporation, Tamil Nadu (SIPCOT)
Catalyst in development of small,
medium & large industries in State
State Industrial Development

Corporation (SIDCO)
Developing Industrial Estates
Tamil Nadu Industrial

Investment Corporation (TIIC)
Financing Small & Medium
Industries
Dept. of Highways & Rural Works

(DHRW)
Highways / roads construction &
maintenance excluding ULB roads
Tamil Nadu State Transport

Corporation (TNSRTC)
Operating buses along intra &
interstate bus routes
Public Works Department (PWD)

Maintenance of Public Buildings,
Waterways and beach
Highways Department
Constructing major roads within
city, all bus routes & major district
roads
Traffic Police (Greater Chennai)

Managing traffic, enforcing traffic plans
and regulations
Metropolitan Transport Corporation

(MTC)
Providing bus transport
Tamil Nadu Electricity Board

(TNEB)
Generating & supplying electricity
Department of Social Welfare

Supporting disadvantaged sections
Railways
Ministry of Urban Affairs
Chennai Port Trust
International Airport Authority of

India (IAAI)
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16.11 The Legal Framework

Table 7 presents a summary or planning and development-related legislation and regulation.
Although certain revisions may be required, particularly with regard to civic services, the overall
legal framework is comprehensive and largely in place. Improved implementation and
enforcement on the part of the administrative agencies at all levels is required.
Table 7: Legal Framework
SECTOR
Environment
Civic Services
Water
Air
Noise
Hazardous Waste
Land Use
Coastal Resources
Slum Upgradation
LEGISLATION
Environment (Protection) Act, 1986
Factories Act Amendments, 1987
Madras City Municipal Act, 1919
Tamil Nadu District Municipalities Act, 1920
Madras Metropolitan Water Supply and Sewerage Act, 1978
Tamil Nadu Water Supply and Drainage Act, 1971
Madras Metropolitan Ground Water Regulation Act, 1987
Water (Prevention and Control of Pollution) Act, 1974
Water Cess Act, 1977
Air (Prevention and Control of Pollution) Act, 1981
Motor Vehicle Act Amendments, 1988
Central Motor Vehicle Rules, 1989
Environment (Protections) Rules, 1989
Hazardous Waste (Management and Handling) Rules, 1989
Public Liability Insurance Act, 1991
Tamil Nadu Town and Country Planning Act, 1971
Coastal Zone Regulation, Notification 1991
Tamil Nadu Slum Areas (Clearance and Improvement) Act, 1972
Further details on Legal and Regulatory Responsibilities are included in Volume 5.
16.12 Planning History

Over the past 50 years numerous development plans and programmes have been produced.
Some of these include:
1957: General Town Planning Scheme prepared by Madras Corporation.
1967: The Madras Interim Plan prepared by Directorate of Town Planning, GoTN
1968: Metropolitan Plan prepared by Thiru C Ramdas, IAS
1970: Urban Development of Greater Madras prepared by Thiru Badrinath, IAS
1977: Madras Metropolitan Plan 1971-91 prepared by a multi-agency group and
published by the Rural Development and Local Administration Department
1974: Madras Urban Project prepared by the Madras Metropolitan Development Authority
1976: Process of preparation of First Master Plan for the Metropolis started in 1973, by
constitution of the Chennai Metropolitan Development Authority (CMDA). The First
Master Plan (FMP) was approved in 1976.
1980: Structure Plan for CMA prepared by CMDA with Alan Turner & Associates as
consultants.
1997: Sustainable Chennai Project, under Sustainable Cities Program sponsored by UNHabitat.
2006: City Development Plan (CDP) for CMA prepared under JNNURM.
2008: Second Master Plan approved on 02.09.2008 and notified on 02.09.2008; from that
date it came in to force to supersede the First Master Plan.
2008: This Review of the CDP began to update and expand its original scope of funding
consideration.
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17. Financing Urban Development

17.1 Introduction
In this section the impact of increased urbanization on the requirement for urban infrastructure,
and the financing viability of such urban infrastructure is discussed in the Chennai context.
Management of urban infrastructure and the supporting financing system in India changed
significantly during the 1980s and 1990s. The Eighth Plan (1992-97) added cost recovery into
the municipal finance system. This concept was supported further during the Ninth Plan period
(1997-2002) with a substantial reduction in budgetary allocations for infrastructure development.
The Government of India expected metropolitan and other large cities to make capital
investments on their own, besides covering the operational costs for providing infrastructure
services. Most of the development projects are to be undertaken through institutional finance
rather than budgetary support. The costs of borrowing have gone up significantly, and
consequently, they can no longer lend money at a rate below that prevailing in the market. This
has come in their way of taking up socially desirable schemes that often turn out as financially
non-remunerative. Projects for the provision of water and sanitation facilities, improvement of
slum colonies, etc., that generally require a substantial component of subsidy, received a low
priority in this changed policy perspective.
There is overall paucity of funds for infrastructure development, but at the same time there are
multiple financing options available. Efficient Urban Financial Management is required by all
ULBs to manage acquisition, financing, and management of infrastructure assets for the benefit
of all residents. It is to be noted that the division of the JNNURM into two submissions, one for
Urban Infrastructure and Governance (UIG), and another for Basic Services for the Urban Poor
(BSUP), has a major impact on project implementation. This artificial compartmentalising results
in skewed urban infrastructure and improper financing. The preferred approach is one of holistic
planning pragmatically for inclusive city development.
17.2 Chennai CDP 2006 Financial Perspectives

As a response to the increasing demand for improving urban infrastructure and development,
the Government of India launched the JNNURM in 2005-06 the largest initiative to assist the
development of urban infrastructure and enhance the capacity of urban local bodies to shoulder
responsibilities entrusted to them by the 74th Constitutional Amendment Act (CAA). JNNURM
envisaged that each of the mission cities develop a City Development Plan (CDP) with the
active involvement and endorsement by the urban local body the third tier of government charged with the responsibility of provided improved urban services, including to the urban poor.
The 2006 CDP considered JNNURM as the only source for financing all infrastructure
development. The 2009 CDP however considers a full range of financing options, and identify
projects for both accessing funds under JNNURM and funds available under other options.
The following Tables summarise the status of JNNURM:
Table 8 summarises investments in the CMA as per the 2006 CDP.
Table 9 provides summary of projects proposed under the 2006 CDP and approved by
MoUD for CUA until February 2009; See Volume 3: Annex 3 for detail of the projects.
Table 10 shows the likely allocated share of Tamil Nadu (including Chennai UA and cities
of Coimbatore and Madurai)
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Table 8: Summary of CMA Investments Proposed in 2006 CDP

Component
(Rs. million)
1
2
Water Supply
Sewerage
3
4
5
6
7
8
9
10
11

Transportation
Mass Rapid Transit System
Urban Basic Services for Poor
Parking Lots and Spaces
Heritage and Recreation
Satellite Towns
Metro Rail (45 kms)
Total
JNNURM Sharing Pattern
Total Cost
GoI
GoTN
ULB/
Institutional
Financing
63,210.00
22,990.00
22,123.50
8,046.50
9,481.50
3,448.50
31,605.00
11,495.00
8,478.00
14,238.80
172,540.80
6,000.00
38,872.30
438.50
1,030.80
50,000.00
70,000.00
2,96
7.30
4,983.58
60,389.28
2,100.00
13,605.31
153.48
360.78
17,500.00
24,500.00
1,271.70
2,135.82
25,881.12
900.00
5,830.85
65.78
154.62
7,500.00
10,500.00
4,239.00
7,119.40
86,270.40
3,000.00
19,436.15
219.25
515.40
25,000.00
35,000.00
447,799.20
156,729.72
67,169.88
223,899.60
Source: CDP April 2006
Table 9: CUA Projects Approved for JNNURM to Feb. 2009

Sl.
No
Sector
Rs. million
Approved
Cost
Road Flyovers ROB
2
3
4
5
6
Heritage
Central Share
(35%)
State Share
(15%)
ULB Share
(50%)
827.66
289.68
124.15
413.83
Sewerage
9,718.39
3,401.44
1,457.76
4,859.20
2,995.30
1,048.36
449.30
1,497.65
Water Supply
10,927.91
3,824.77
1,639.19
5,463.95
Drains
14,479.04
5,067.66
2,171.86
7,239.52
61.00
21.35
9.15
30.50
39,009.30
13,653.26
5,851.40
19,504.65
Total
Source: JNNURM Website
Table 10: JNNURM Funding - Tamil Nadu

Sl.No
Components under JNNURM Scheme
Allocated Share Rs.

Million
Urban Infrastructure and Governance (UIG)
19,507.0
Urban Infrastructure and Development Scheme in Small and Medium

Towns (UIDSSMT)
7,060.0
Basic Services for Urban Poor (BSUP)
10,328.0
Integrated Housing and Slum Development Program (IHSDP)
2,911.0
Total allocation for Tamil Nadu
39,806.0
Source: JNNURM Website, and discussion with SLNA, Tamil Nadu

Note: The schemes specified in (a) and (c) covers mission cities of Tamil Nadu i.e. Chennai UA, Madurai and
Coimbatore. The schemes specified under (b) and (d) covers the identified non-mission cities in Tamil Nadu under the
JNNURM;
Source: Official Website of JNNURM and discussion with SLNA, Tamil Nadu
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A comparison of planned JNNURM projects under 2006 CDP and actual approvals by MoUD
indicate:
First three years: MoUD approved only 8.70% of total planned investment for CUA;
The exposure of the ULBs to share the portion of infrastructure financing out of
internal resources is Rs. 19,495.65 million.
Investment planned under Urban Infrastructure and Governance (UIG) was Rs.
408,927 million
Investment planned forr Basic Urban Services for the Poor (BUSP) was Rs. 38,872
million
Allocation for Tamil Nadu for UIG is Rs. 19,507 million, which is only 4.77% of total
planned infrastructure for CMA. 95% of the planned UIG investments remain
unfinanced by JNNURM.
BSUP allocation for Tamil Nadu is Rs. 10,328 million that is only 26.57% of total
planned for CMA. 73% of planned BUSP projects remain unfinanced by JNNURM.
The funds available under the JNNURM are subject to compliances/fulfilment of the reform
agenda set by the MoUD. The list showing progress in reforms agenda in Tamil Nadu is
provided in Volume 3: Annex 3.
17.3 Provision of Urban Infrastructure for Inclusive Civic Development

17.3.1
Primary Infrastructure
Facilities required for better living include water, affordable housing, proper sanitation and
drainage, good roads (internal and approach), recreation space/community halls, schools and
health centres. Cost recovery is required initially to cover operation and maintenance, and
gradually increased to cover the capital costs. This can be achieved through a cyclical process
allowing citizens to use infrastructure to increase income levels and therefore ability to pay for
improved infrastructure.
17.3.2
Secondary Infrastructure
Facilities required for better earning opportunities include:
Creating vertical markets; also allowing the urban poor to trade vegetables, provision,
milk, fish, etc. for that ULB may collect stall fees;
Creating good/modern fish markets for fishermen to trade, for that ULB may collect stall
fees;
Create affordable cold storage facilities, for that ULB may collect user charges;
Create vocational training institutes, under PPP arrangements by converting the
municipal schools into vocational training centres during off-school hours;
Employ youths from slums on contract basis to maintain parks, parking zones,
government assets, city traffic (assisting traffic police);
Employ males slum dwellers as security agents to husband civic assets;
Create employment opportunities (contractual) in the municipal service delivery system
for slum dwellers;
17.4 Financing Infrastructure

The funds available from JNNURM or other government sources are not sufficient to meet the
growing needs of infrastructure development. The reduction of current and capital expenditures
on infrastructure and social sectors in recent years has created serious uncertainty with regard
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to provision of basic amenities to the urban population, particularly the urban poor. A number of
funding alternatives may therefore needs to be considered by ULBs:
17.4.1
Internal Resources
The revenue surplus is the most important internal source for financing infrastructure projects.
However, these are always insignificant as most of the revenue sources lacks buoyancy, O & M
expenses keep increasing and user fees and charges are not adequately and timely revised.
Improving revenue surpluses requires reforms:
Utilise GIS to improve property tax collection;
Migrate from the ARV basis to UAM to determine property taxes ensuring relationship
between quality and quantity of civic services and collection of taxes. [Best Practices:
Bangalore, New Delhi, Indore, Patna, etc]
Enforce cost recovery for all direct revenue-generating services and control wasteful
and unplanned expenditure e.g., leak detection, energy audits etc;
17.4.2
Commercial Borrowings or Bonds
These represent another source of potential infrastructure finance. Unfortunately, the weak
financial and revenue positions of most ULBs limit their access to these vehicles in their
traditional form. Therefore, a new type of credit instrument has been designed to enable ULBs
to tap the capital market. "Structured Debt Obligations" (SDOs) are arrangements through which
bonds are issued on the condition that the borrowing agency pledges or escrows certain
buoyant sources of revenue for debt servicing. This is a mechanism by which the debt
repayment obligations are given utmost priority and kept independent of the overall financial
position of the borrowing agency. It ensures that a trustee would monitor the debt servicing and
that the borrowing agency would not have access to the pledged resources until the loan is
repaid. [Best Practices: Ahmedabad, Indore, Kolkata, etc]
17.4.3
ULBs are considering and financing increasingly complex development projects that, although
public in nature, have a highly private character. The ULBs are beginning to use the concepts of
risk and reward analysis and are prepared to make equity investments to stimulate the kind of
investment it wants. Conversely, the private sector is beginning to learn how to deal effectively
with state and local governments. Private developers are recognizing the critical role that public
services play in the success of a project and increasingly are willing to pay the cost of such
services directly. The cost and benefits to the community are becoming part of the calculus of
development. The future of urban development finance rests on the willingness of developers
and governments to recognize their joint dependencies. The benefits of well-conceived and
well-executed development are great enough to be shared by both parties. However, ULBs
must not confuse PSP with outsourcing of some typical civic activities and responsibilities. ULBs
can introduce PSP in creating vertical markets, commercial trading zones and in managing
services and assets where both parties can share revenue out of user charges. [Best Practices:
Many instances are there like providing quality drinking water in town panchayats and villages
while implementing the Byrraju Foundations 4P Model using Sujala Plants, the Jalswarajya
programme in Maharashtra, commercializing municipal markets in Kolkata under PSP mode,
etc]
17.4.4
Shelter Micro-Finance
These programs, emanating out of Grameen Bank-type experiences, are finding their way from
the original income-producing support into low-income/slum shelter support recognising the
economic potential of a home. Other approaches utilise cross-subsidization on user charges
between slum and non-slum dwellers. [Best Practices: Buenos Aires, Argentina]
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17.4.5
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Intergovernmental Transfers
Transfers from the State or Centre are a favoured source of financing infrastructure. This may
include higher claims on Central Government agencies (like Railways, Airports Authority,
Telephone Utilities, etc.) for using municipal services like approach roads, parking lots, water
services, etc. In addition, higher claims on State Government against road tax, vehicle tax,
entertainment tax may be an important source of financing the infrastructure projects.
17.4.6
Increased Floor Space Index (FSI)
Provide incentives to the private sector by allowing increased density of development in

selected, often central, areas of the city so that multi-storied structures can come up, providing
space for business houses, commercial activities and high-income residential units. This can be
another way of generating resources for infrastructure development. Provision of higher FSI and
utilizing the additional funds for financing of housing for poor may be good option.
17.4.7
Loans from National-Level Financial Institutions (FI)
Includes borrowings from the Housing and Urban Development Corporation (HUDCO), set up in
the 1960s to support urban development schemes through state and local level agencies with
generally below the market rate financing. The Infrastructure Leasing and Financial Services
(IL&FS), established in 1989, has come up as an important financial institution in recent years.
The Government of India owns a small equity share in this private sector financial intermediary.
IL&FS has helped local bodies, parastatal agencies, and private organizations to prepare
feasibility reports for commercially viable projects, detail pricing and cost recovery mechanisms,
and to establish joint ventures and companies called Special Purpose Vehicles (SPV).
Government of Tamil Nadu is implementing the Tamil Nadu Urban Development Project
(TNUDP), with World Bank (IDA) financing. Tamil Nadu Urban Development Fund (TNUDF)
created under the TNUDP with contribution from Government of Tamil Nadu along with all India
financial institutions viz., ICICI Bank Limited, Housing Development Finance Corporation
Limited, and Infrastructure Leasing and Financial Services Limited. TNUDF is the first publicprivate partnership providing long-term debt for civic infrastructure on a non-guarantee mode.
17.4.8
International Funding Agencies
These are active in the urban sector in India and their share in total infrastructure investment
has increased since the 1990s. The Department for International Development, United Kingdom
[Best Practices: Urban Services for the Poor Programme in Andhra Pradesh, West Bengal,
Madhya Pradesh, Bihar]. Australia, and the Netherlands, for example, has taken up projects
pertaining to urban infrastructure and basic amenities under their bilateral co-operation
programmes. These financial supports, although a small fraction of the total investment needs,
has generally gone into the areas that are unlikely to be picked up by the private sector and
those may have problems on the cost recovery front. The World Bank, the Asian Development
Bank, and the Overseas Economic Cooperation Fund (Japan), Japan Bank for International
Cooperation (JBIC) on the other hand, are the agencies that have financed infrastructure
projects that are commercially viable and potentially reproducible on a large scale.
17.4.9
Area-Linked Development Charges
Instead of attempting to tax land values incrementally because of infrastructure, directly taxing
the value of property at its inception can be a more effective way of obtaining capital receipts for
financing urban infrastructure. The Maharashtra Town Planning Act allows for such a charge.
Punjab charges External Development Charges (EDC) while granting permission for conversion
for land. Development charges (also known as lot levies or exactions) are widely used by
municipalities in Canada and the United States to pay for infrastructure. A development charge
is a one-time levy imposed on developers to finance growth-related capital costs associated
with new development (or, in some cases, redevelopment). These charges are levied for works
constructed by the municipality, and the funds collected are used to pay for the infrastructure
made necessary by the development. The rationale for charging developers for such costs is
that growth should pay for itself and not be a burden on existing taxpayers.
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17.4.10
Volume 1
Third Party Fee Collection
As part of recovery of cost of services such as management of solid waste (SWM), ULBs
usually levy collection fees on users. The amounts are small and consequently often go
uncollected. Alternatively, ULBs can enter into agreements with State Electricity Boards, for
example, and they collect the SWM fees as an additional amount on the monthly electricity bill.
Electricity, being an inelastic commodity, has a high payment rate. The collection rational can
be a fixed sum, irrespective of the electricity consumed, or variable on the quantum of electricity
consumption. If variable, the logic is that users who consume more electricity likely generate
more waste. Similarly, cost of providing public street lighting is not recovered as a direct charge.
Exercising its powers, the Municipal Corporation of Delhi recovers a 5% duty levied through the
consumers electricity bills collected by the supply companies and adjusted against the power
used by the municipal corporation, mainly on street lighting. [Best Practices: Jordan collecting
SWM fees through Electricity Bills; Government of India imposing Cess on Petrol Consumption
to finance the road sector, Education and Higher Education Cess to finance the Education
Sector, etc. Delhi Municipal Corporation]
17.4.11
Self-Help, Community Collaboration
These forms of "capital" and "finance" are often unrecognized, but in fact represent substantial
investments. This applies particularly in the case of individual low-income home ownership
where individual and/or community contributions, whether in labour or in kind, represent capital
investments that should/could be recognised as equity by lending institutions in support of local
improvement loans.
17.5 Corporation of Chennai: Internal Accrual

Analysis of past financial performance of the CoC and participating municipalities was carried
out for last six years based on the published financial statements. Based on the income
expenditure trend, and assumptions, financial projection for CoC was carried out up to year
2026 to show the internal accrual generation capacity of CoC, see Volume 4 Annex 1.
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Part C: Macro-Level Planning Strategy

18. Macro-Level Planning and Growth Management
Macro-Level Planning and Growth Management within the CMA is the framework for identifying,
evaluating and coordinating individual development initiatives. The SMP and 2006 CDP discuss
macro-level planning, but both continue to project growth based simply on recent trends without any
indication of future management. If current trends are not carefully managed, achievement of the
SMP's stated strategies and goals will be difficult. Figure 7 a schematically illustrates the base layer of
important Environmental Features which must be the starting point for a sustainable future. A look at
Figure 7 b. illustrates the current population growth trends by Planning Area component showing a
strong overlap on environmentally sensitive areas. It is clear the current trend, if allowed to continue
unmanaged, will have a strong negative impact on valued environmental assets with impacts on water
supply, drainage and the general health of the CMA. Figure 7 c. illustrates a proposed remanagement of the same levels of growth, but with a more sustainable approach concentrating growth
outside of environmentally valued zones. This concept is consistent with growth management
strategies stated in the SMP.
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Figure 7: Macro Area Growth Analysis
a. Environmental Features
b. Current Growth Pattern
c. Proposed Growth Pattern
18.1 Assumptions
1.
The SMP is the overall guiding document for future development of the CMA,
supplemented by the Chennai City Development Plan providing a more detailed
investment plan. Still more detailed Local Development Plans are required to expand
upon both the SMP and CDP.
2.
Overall growth of the CMA will continue at approximately the same rate experienced over
the past decade.
3.
Compact, fully utilised, "optimised", infrastructure is preferred as the most efficient, cost
effective approach to providing and maintaining services.
4.
More people would prefer to live in the City if conditions and amenities were more
attractive.
5.
There is general support for sustainable environmental management being essential for
continued social and economic well-being.
6.
Development proposals that are consistent with clear and well thought-out macro-level
planning strategies are more likely to gain public, political and financial support at all
levels than are ad hoc developments
18.2 Macro-Level Growth Management Scenarios

Four alternative Macro-Level Growth Management scenarios are considered. All are based on
accommodating approximately the same overall CMA growth as estimated in the SMP, but with
varying approaches to guide that growth. The Scenarios are summarised in Table 11, briefly
described below and evaluated with respect to the Guiding Principles and Assumptions discussed
above. Details of the preferred scenario are presented in Section 18.3.
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Table 11: Macro-Level Growth Management Scenarios

Growth
CoC
Munic.
Towns
Villages
Scenario 1. Status Quo
Scenario 2. Beginning shift to City and Peri-Urban
Scenario
Description
Scenario 3.
Further shift to City and Peri-Urban

Municipalities
Scenario 4.
Strong emphasis on Peri-Urban, Very

Limited Village growth, revitalise City
VL
18.2.1
Scenario 1: Status Quo
Assumes growth is allowed to continue along the current unplanned, uncontrolled trend. The
majority of growth takes place in the more rural Town and Village areas valued environmental
assets come under threat, urban sprawl exacerbates problems of providing affordable
infrastructure and services, and live-work relationships demand greater travel time, energy and
pollution.
18.2.2
Scenario 2: Shift to Support City and Peri-Urban (Municipalities)
Begins to take some control over the macro-level growth and supports a turn-around in the
City's growth slow-down while also supporting the orderly development of key peri-urban areas
as viable extensions to the City. The City and Peri-Urban areas become more attractive
resulting in some slow down in growth of the Towns and Villages. A good portion of the village
development that takes place will be directed towards a series of 6 new Neighbourhood
Settlements proposed along the new Outer Ring Road.
18.2.3
Scenario 3: Emphasis on the City and Adjacent Municipalities
This Scenario further emphasises growth concentration in the City and Peri-Urban areas by
placing restrictions on Towns and Villages to grow only in a consolidated and orderly fashion.
Again, a good portion of the village development that takes place will be directed towards a
series of 6 new Neighbourhood Settlements proposed along the new Outer Ring Road. This
Scenario assumes a concerted effort to improve urban conditions in the City to attract additional
growth and some returning population.
18.2.4
Scenario 4: Focus on Revitalisation City Growth and Peri-Urban
This Scenario takes the strongest steps to maintain critical environmental assets in the CMA by
further discouraging sprawling Town and Village growth and continuing a high level of
development support to priority Peri-Urban areas. The City itself will see significant urban
renewal to increase its appeal and add life to its central role as the "heart" of the CMA and
region.
18.3 Proposed Macro-Level Development Strategy

Scenario 4 most closely addresses the goals, objectives, guiding principles and strategies of the CDP
and SMP, while incorporating a more holistic, integrated and sustainable approach to development of
the CMA and the region in general.
Table 12 summarises key features of the proposed Macro-Level Development Strategy while
conceptually Map 8 illustrates it.
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Table 12: Proposed Macro-Level Development Strategy (Scenario 4)

Component
City of Chennai
Objectives
Peri-Urban
Municipalities and
Town Panchayats
(selected priority
ones)
Village Panchayats
Spatial Features
enhance role as
the "heart" of the

CMA, the central of
government,
business and
culture.
revitalise
strongly improve
environmental
management
actions
urban renewal including

infrastructure rehabilitation
& optimisation
urban green space and
public "breathing" room
spatial allocation and
infrastructure support for
the informal sector
affordable shelter initiatives

for urban poor & slum
dwellers
accommodate medium
high level population
growth in defined priority
growth nodes
consolidate growth under
the guidance of strong,
implemented and
enforced Development
Plans minimising sprawl
and managing
environmental assets and
ease of providing efficient,
affordable infrastructure
and services.
institutional capacity
building to permit local
planning, implementation
and management of
sustainable growth
environmental protection
and management of critical
environmental assets
become the key

growth centres for
Chennai's
expansion
become major
service sector and
light industrial
employment
centres offering
healthy living
environments
integrate
development with
adjacent
communities and
the CMA as a
whole
significantly increase
densities, but in
controlled, priority areas
retain and/or
restore as the
"lungs" of the
CMA.
discourage ad hoc
development occurring
throughout the rural areas
priority investments in
environmental
management
restore and retain water

bodies / water courses,
aquifer re-charge areas,
wetlands and forests by
removing encroachment
and preventing them
design, construct full

infrastructure and services
for series of proposed new
"sustainable
neighbourhoods"
extensive ULB capacity

development
rehabilitate, protect
and manage the
critical natural
assets that affect
drainage and flood
control, water
supply and general

environmental
health of the CMA
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encourage and
accommodate mediumlevel population growth
following enhancement of
urban environment and
amenities
Investment Focus
retain and support

agriculture as a
productive part of
environmental
management and food
production in close
proximity to a strong
market
develop a series of 5-6
integrated, carefully
defined, and fully-serviced
"neighbourhoods" as a
rural area living option
with limited negative
impacts
58
infrastructure development
in all sectors carefully
identified, limited and
manageable priority growth
nodes
Component
Natural Areas
Volume 1
Objectives
give priority
environmental
consideration
wherever they
occur
Spatial Features
Investment Focus
enhance the City's and
CMA's coastline
increase the number of
urban parks/green spaces
restore and protect critical
natural areas throughout
the CMA
serve as high-level
industrial
employment
centres absorbing
a significant
amount of State
growth and
Chennai over-flow
growth
develop as fully
self-contained
centres with full
range of social and
economic
amenities including
housing for a wide
range of socioeconomic groups
infrastructure investments
in identified development
areas for re-location of
encroaching developments
development of sanitation
and drainage infrastructure
to prevent further pollution
of critical water bodies/
waterways
water bodies / courses

clean-up and reinstatement
to previous functions
create urban green spaces
Satellite Towns
institutional capacity
building for ULBs and
environmental
management agencies
need to be
comprehensively planned
to prevent unplanned
urban sprawl.
limits must be carefully
defined and maintained to
avoid adverse
environmental impacts
and further loss of

surrounding agricultural
lands and natural assets
beyond the scope of this

CDP, but must include fully
integrated development of
infrastructure and social
amenities in support of
healthy, liveable, enjoyable
and attractive communities
consideration needed for
well integrated, multi-mode
transportation linkages to
Chennai and its ports
The overall population growth in the CMA considered in the proposed Growth Management
Strategy is consistent with that projected in the SMP, reaching a total of approximately 12.5
million persons by the year 2026. However, the proposed Growth Management Strategy
redirects that growth in a more sustainable manner in line with the vision, strategies and goals
of the SMP and CDP. A summary of projected population levels is presented in Table 13.
Table 13: Summary of Population Projections - 2026
Location
Area km
% of Total
CMA Area
City of Chennai
176
15
Municipalities
240
20
Town Panchayats
156
13
Village
Panchayats
617
52
1,189
100
Total
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Popul.
Growth Rate
Population
2026 (est.)
1.50%
6,301,000
4.00%
4,215,000
4.00%
1,029,000
1.25%
997,000
12,542,000
59
% of Total
CMA Pop.
Density
per/ha
58
358
34
173
73
15
100
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Map 8 : Proposed Macro-Level Growth Management Strategy
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60
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18.4 Priority Peri-Urban Development Areas

The original CDP and Second Master Plan indicate 6 priority municipalities for future development
based on proximity to the City, good transportation access or potential, available land, and/or the basis
of strong industrial development already in place. These municipalities include:
Manali
Poonamallee
Ambattur
Avadi
Alandur
Tambaram
Refer to Map 2. Some significant Town Panchayats adjacent to these municipalities are also included
as development priorities.
An emphasis is placed by CDP Stakeholders on ensuring significant development investment in these
key peri-urban areas as a way of sustainably absorbing increased population growth in the CMA.
Proposed projects in all sectors within these areas are presented in the respective sector sections of
this report.
Section 30, Integrated Development discusses the approach for further development of these
Municipalities in a coordinated and integrated manner.
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Part D: Sector Strategies and Development

This Section presents individual sector strategies, programmes and investments required to achieve
the CDP's vision, goals and objectives within the context of the Macro-Level Growth Management
Strategy. Each sector is presented as a self-contained package including analysis of the sector's
existing situation, sector development strategies, an inventory of existing or planned investments in
the sector, an analysis of both service and funding gaps to meet existing and projected, and a financial
analysis. Institutional structure, capacity, reforms and governance as whole are discussed first as
fundamental to the successful undertaking of all other initiatives. Sectors discussed include:
Institutional Reform and Governance

Waterways Management
Water Supply
Sanitation
Basic Urban Services
Shelter
Heritage Resources
Sectors referenced:
Energy
Communications
Social Amenities
Part E addresses investment prioritisation of these Sectors and their respective individual projects.
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19. Governance, Institutional Framework and Capacity Building

The key to effective, efficient urban planning, development and investment as well as urban
sustainability is the state of the institutional framework ultimately responsible for it and the system of
governance in which these institutions function. This requires a combination of "Good Governance",
(Figure 8) and Sustainable Governance (Figure 9).
Figure 8: Good Governance
Figure 9: Sustainable Governance
19.1 Metropolitan Governance in CMA

19.1.1
Institutional Imperatives
Governance structure in CMA has the following institutional imperatives:

1.
th
Capable of performing the tasks assigned in the 12 Schedule of the Constitution

th
accompanying the 74 Amendment. Tasks and the agencies presently performing them
are presented in the Table 14. See additional details in Volume 5.
Table 14: CMA Institutional Tasks
S.No
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Tasks
Presently Performed By
Urban planning including town planning
CMDA
Regulation of land-use and construction of

buildings
CMDA, ULBs
Planning for economic and social development
Commissioner
Municipal
Administration and ULBs
Roads and bridges
ULBs; Highways
Water supply for domestic, industrial and

commercial purposes.
Chennai Metro Water Supply and

Sewerage Board
Public health, sanitation conservancy and solid

waste management
ULBs
Fire services
Director of Fire Services
64
S.No
2.
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Tasks
Presently Performed By
Urban forestry, protection of the environment

and promotion of ecological aspects.
Department of Environment &

Forests; TN Pollution Control Board
Safeguarding interests of weaker sections of

society, including the handicapped and
mentally retarded
Department
ULBs
10
Slum improvement and upgradation.
11
Urban poverty alleviation
ULBs
12
Provision of urban amenities and facilities such

as parks, gardens, playgrounds.
ULBs
13
Promotion of cultural,
aesthetic aspects.
Department of Tourism
14
Burials and burial grounds; cremations,

cremation grounds and electric crematoriums
ULBs
15
Cattle pounds;
animals.
to
ULBs
16
Public amenities including street lighting,

parking lots, bus stops and public
conveniences.
ULBs
17
Regulation of slaughter houses and tanneries.
ULBs
educational
prevention
of
cruelty
and
of
Social
Welfare;
Should be capable of carrying forward the urban reforms envisaged under JNNURM
aiming at transforming ULBs into Urban Local Governments (ULGs)
3.
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Implementation of decentralisation measures as envisaged in the Constitution (74th

Amendment) Act to establish elected ULGs as institutions of self-government.
Adoption of modern, accrual-based double entry system of accounting in ULGs.
Passage of a "public disclosure law" to ensure preparation of medium-term fiscal
plans of ULGs and release of quarterly performance information to all
stakeholders.
Passage of a "community participation law" to institutionalise citizen participation
and introducing the concept of the Area Sabha in urban areas.
Transferring all special agencies that deliver civic services in urban areas to ULGs
over a period of five years and creating accountability platforms for all urban civic
service providers in transition.
Introduction of e-governance using IT applications like Geographical Information
Systems and Management Information Systems for various services provided by
ULGs.
Reform of property tax with GIS, so that it becomes a major source of revenue for
ULGs and arrangements for its effective implementation to ensure that collection
efficiency reaches at least 85 per cent within the next five years. Complete
revamping of the property tax system through detailed data gathering process,
tracking and monitoring.
Levy of 'reasonable' user charges by ULGs on services that are currently free, with
the objective of recovering full cost of Operations and Management within the next
five years.
Able to undertake most of the tasks and responsibilities presently performed by

parastatal and special agencies that deliver civic services in urban areas and creating
accountability platforms for all urban civic service providers. The Specialised Agencies
(see Table 15) are:
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Table 15: Government Agency Responsibilities

S No.
State Government Agencies
Responsibilities
Tamil Nadu Housing Board (TNHB)
Land development and housing for all income

groups

(TNSCB)
Rehabilitation and upgrading of slums
Chennai Metropolitan Water Supply

and Sewerage Board (CMWSSB)
Provision of Water Supply and sewerage in

CMA
Chennai Metropolitan Development

Authority (CMDA)
Preparing
Master
Plan
/
Detailed
Development Plan / New Town development
Plan as the case may be. Land use planning,
development control, development of new
towns and undertaking special projects such
as TNUDP
Tamil Nadu Electricity Board (TNEB)
Generation and distribution of electricity in the

whole state including CMA
Small
Industries
Development
Corporation (SIDCO)
Industrial
infrastructure
including
development of plots and construction of
sheds for small and medium industries
Pallavan
(PTC)
Planning and operating of mass transport by

buses
Tamil Nadu Pollution Control Board
Transport
Corporation
Enforcement of pollution control laws
4.
Achieve decentralisation and democratization of Governance in a sustainable

manner. The passage of the 74th Constitutional Amendment Act was the first major step
towards decentralisation and democratization of functions of the urban local bodies in the
country. This Act envisages establishing grass-root level democratic decentralised
institutions of ULBs. Institutional arrangement should be capable of achieving this key
objective.
5.
Fulfil the Planning & Development requirements under 74th Amendment Act
Constitution of Metropolitan Planning Committee (MPC) to prepare a Draft

Development Plan (DDP) for the Metropolitan area as a whole;
MPC would comprise of two-third members elected by, and from amongst the
elected members of Municipalities and Chair persons of the Panchayats in the
Metropolitan Area in proportion to the population;
One third Members representing Government of India and the Government of the
State and of such organisations and institutions as may be deemed necessary for
carrying out the functions assigned to such Committees.
6.
Facilitate good urban governance, based on the principle of urban citizenship, affirming
that no man, woman or child can be denied access to the necessities of urban life,
including adequate shelter, security of tenure, safe water, sanitation, a clean
environment, health, education and nutrition, employment and public safety and mobility.
7.
Promote a vibrant Informal Economy Sector in CMA comprising of poor and lowincome groups that constitute over 70% of the working population. They must form part of
inclusive City Development. This would envisage:
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Specifically targeted Poverty Alleviation initiatives

Urban Space and Infrastructure for Livelihoods;
Space and resources for unorganised sector workers;
Infrastructure and Service Needs for Women Workers;
Access to finance and social security;
Upgrading Informal Sector Activity;
66
8.
Slum Rehabilitation with Shelter Rights and Affordable Housing;

Public Transport and Facilities for Pedestrians.
Capacity to manage public services effectively. This may cover:
9.
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outcome based services

working with other stakeholders
working through partnerships i.e. PPP
quality based services
Incorporate Participatory process as part of CMA Governance
Democratic governance is a judicious combination of representative and

participatory process. While CMA has Institutions of representative governance in
its ULBs there is near total absence of Institutions that facilitate participatory
governance. This is among the main causes for the gaps one sees in the
governance of CMA
Developing conducive institutions for Participatory and good governance in CMA is
at the core of urban reforms envisaged under JNNURM. It is also the sine qua non
for successful implementation of CDP and for managing public services
effectively.
CDP would be proposing management of urban growth with a more sustainable approach
concentrating growth outside of environmentally valued zones. Being a coastal city sustainable
management of ecologically sensitive coastal zone is of paramount importance. The
governance institutions should therefore be capable of Integrating, coordinating, and
encouraging public actions in the CMA to diminish environmental, social, and economic risks
stemming from climate change and to promote the welfare of the population through the
reduction and capture of greenhouse gas (GHG) emissions. Measures would include: Enforcing
building standards; improve energy efficiency in buildings; energy efficient traffic and street
lighting; cleaner electricity generation systems; bus rapid transit and non-motorised transport
systems; clean fuels and hybrid technologies for city buses and other vehicles; reduce traffic
and augment public transport; waste-to-energy systems at landfills; Improving water distribution
systems and leak management; other major GHG reduction initiatives.
CDP is presenting a series of Sector Investment and Development Packages including an
inventory of existing or planned investments and identified "gap" projects required to achieve
the overall macro-growth strategy. Sectors addressed include: Traffic and Transport;
Waterways/Drainage; Water Supply; Sewerage and Sanitation; Solid Waste Management;
Basic Urban Services; Shelter; Urban Renewal; Integrated Developments; Social Amenities;
Heritage Resources and Institutional Development and Capacity Building.
Institutional arrangements should be capable of planning the projects and investments as
suggested in the CDP and attract funding and investments to implement them. Citizens
participation at every stage of project formulation, budgeting and implementation should be built
in as part of methodologies suggested.
19.1.2
Constraints and Limitations
Metropolitan governance in CMA with three Revenue Districts (one District Chennai - in full
and major parts of other two Kancheepuram and Thiruvallur), two police commissionerates
and two police districts, one Municipal Corporation, 16 Municipalities, 20 Town Panchayats and
214 village panchayats formed in 10 Panchayat Unions and several parastatal agencies
catering various infrastructure and services is a picture of chaos.
Every planning / development act and procedure requires the involvement of various
administrative organisations and bodies which must decide in each case on the future of the
sensitive urban space, infrastructure and services. In particular, works at the inter-municipal or
inter-district level require increased coordination between bodies, as well as the consent of
society. What is required, therefore, is a new governance structure that will essentially take
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charge of effective spatial, infrastructure and environmental management and help map out and
implement a development policy for the area.
While considering new governance structure it must be kept in view that for long we have been
following the multi-agency model in CMA. By trying to integrate the functions of several
agencies now, we would be diluting the existing professionalism. It could lead to problems in
prioritization and raising funds from international funding agencies. Western countries have
integrated many service agencies with local bodies, through a process of evolution. The
suggested institutional structure therefore caters to the imperatives listed above and triggers a
process of evolution.
19.2 Suggested Institutional Reforms in CMA Governance

Cities in India, with some exceptions, have not been enabled to look inward and build on their
inherent capacities, both financial and technical, and instead are still being seen in many states
as wards of the State governments. This should and this must change. (Prime Minister
Manmohan Singh at the launch of JNNURM in December 2005)
Unless this vital change is achieved, Cities will neither be engines of growth nor have the
quality of infrastructure and services required for a reasonable quality of life for its citizens. This
realization is at the core of the reforms that have been suggested in the institutional structure of
CMA. From a mere cluster of ULBs, CMA should transform into vibrant units of Urban Local
Governments capable of performing the tasks and responsibilities envisaged above.
19.2.1 Institutional Reform Options
OPTION 1 - Chennai Metropolitan Development Board with Special Agencies
Expanding the boundaries of CMC as well as reconfiguring the CMA into three Corporations Chennai, Tambaram, Avadi/Amnattur - is under the active consideration of the State
Government. CMDA is submitting a report to Government based on public views and
sentiments expressed toward the proposed formation of two new corporations - Chennai South
and Chennai North with headquarters at Tambaram and Ambattur respectively.
In the event of CMA being governed by three Municipal corporations the mechanism for
Planning process, Preparation of DPR, Implementation Responsibility, Asset Management
including O&M and Delivery of Services could be as suggested in Figure 10.
Suggested Metropolitan Development Board is Metropolitan Planning Committee "Plus". The
Board will carry out the functions of the MPC and exercise supervisory control over the Special
Agencies and Institutions of CMA performing various tasks. This will bring about the desired coordination and cohesion that is woefully lacking now.
This institutional arrangement would take care of the mandatory reforms agenda set forth by the
JNNURM without diluting the existing professionalism of the multi-agency model that has been
in vogue for several years. Special Agencies would be carved out of the parastatal and entities
exclusively for CMA, structured and staffed to perform the tasks outlined in the preceding
paragraphs with the capacity to manage and deliver public services efficiently and effectively.
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Figure 10: Chennai Metropolitan Development Board
Option 2 - Union of Municipalities, Town and Village Panchayats with Special Purpose
Vehicle / Special Agencies
CMA is witnessing an urban explosion. There has been a 60.2% reduction in open space in the
city and a 95.8% reduction in CMA over 35 years. This trend has been more rapid in recent
years due to exponential real estate growth. According to experts the type of urbanisation going
on in CMA could result in creation of heat islands leading to increase in day temperatures. A
rural, green ambience is essential to maintain environmental sustainability of the Metropolis.
The democratic, decentralized spirit of urban governance should also be sustained by retaining
the character and entity of small municipalities, towns and villages.
While considering the institutional structure of governance it should be remembered that as per
Second Master Plan projections CMA will have a population of 1.25 crores in 2026, which would
be higher than the population of 50% of countries in the world! That is the magnitude.
CMA comprises of urban and rural local bodies of varying sizes and compositions in the areas
surrounding Chennai. The structural option given below will help coordination among them,
facilitate planning in the metropolitan area and help ensure good governance in each local body
while maintaining the unique characteristics of each decentralized entity.
The structure is a Region-based Metropolitan Governance Framework with a Union made up of
Municipal Corporation, Municipalities, Town and Village Panchayats within the boundaries of
CMA with administrative and technically trained personnel. Structure and functional
responsibilities of the Union can be worked out through consultations based on principles and
criteria for a metropolitan government, some of which are listed below:
1.
2.
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Geographical unit defined as the spatial competency of the metropolitan authority

Administrative structure and political representation to be within the scope of the 74th
Amendment Act and the Model Municipal Law circulated by GoI.
69
3.
4.
5.
6.
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Manner of electing the basic management bodies of the metropolitan authority by direct
or indirect vote as outlined in the Municipal Laws.
Defining competencies of the metropolitan authority, in relation to central and state
governments.
Economic and technical support of metropolitan government so as to ensure that the
institution functions smoothly from the start.
Policy on the Environmental Protection and Planning
Figure 11 illustrates the proposed structure of the Metropolitan Planning Committee, while
Table 16 summarises Action Agenda.
Figure 11: Metropolitan Region Footprint for Governance
Key elements of the Framework
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Entire CMA comes under a uniform governance system

Metropolitan Planning Committee (MPC) is constituted as per Article 243 ZE of the
th
Constitution of India (74 Amendment)
Jurisdiction of MPC spans urban and rural areas of CMA
District Planning Committees could supplement MPC in rural areas
Substantial decentralization to local governments is achieved
Supported by appropriate accountability mechanisms
Rural / urban structures are synchronized
Establishes co-ordination mechanisms between ULBs and para-statals
A realistic alternative for substantial absorption of special agencies
Technical groups are established in MPC for Spatial Data Centre and Integrated
Transportation Management.
70
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Table 16: Specific Action Agendas

Sl. No.
Action Agendas
Permanent MPC with co-ordination powers

Combination of Elected Representatives and Experts
Well-defined Master / Development Planning procedures and technical inputs
Municipal Law to be revamped and made compact

Strong Mayoral System
3-tier structure of Municipality / Ward Committee / Area Sabha
Formal citizen participation in urban governance and Municipal affairs
Mandatory quarterly disclosure of performance
Municipal Services as per 12 Schedule (Urban) and 11 Schedule (Rural) coordinated

Alignment of jurisdictions based on Ward boundaries.
Joint budgeting / Reporting cycles
Establishment of Spatial Data Centre for real-time GIS to plan and coordinate across
agencies
Establishment of Integrated Transport Authority for planning and coordination across all
public transport agencies.
Implementing Municipal Reforms at City-level

Financial reforms in resource mobilisation, budgeting, accounting and Management
Information System
Human Resources and Capacity Building
Urban Land Reforms

Simplified Land Records Management
Guaranteed land title
Providing integrated economic development, infrastructure and municipal services to

informal sector and urban poor
Provision urban space and facilities for work & livelihood activities
Pursuing targeted employment-generation and poverty alleviation programmes
Pursuing a humane slum rehabilitation and secure shelter policy
Provision of Economically Weaker Section and Low-Income group housing
Defining and ensuring service outcomes

Establish qualitative and quantitative benchmarks for infrastructure and municipal
services
Management and monitoring process
Equitable and inclusive opportunities for the poor and economically weaker sections
10
Development and Delivery of comprehensive urban plan and services

Metropolitan footprint in governance
Involvement of multiple stakeholders
Creation of appropriate and quality infrastructure
Rigorous enforcement of zoning, land use and building regulations
Regular mapping / monitoring of economic activities in CMA
11
Preparing a comprehensive Environmental Management Plan (EMP) for CMA and its strict
implementation.
th
th
Should incorporate Integrated Water Resources Management including pollution

abatement and restoration of waterways and water bodies.
Urban forestry and greening of CMA
Stringent coastal management measures to preserve the natural heritage of beaches,
estuaries and forests
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19.1.3
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External Factors and Developments to Consider

National Urban Renewal Mission should announce substantial incentive for governance
and Institutional reforms
Reforms would include areas in 2, 3, 4 and 9 in Table 16 above
Funding for E-Governance Initiatives and for establishment of Spatial Data Centre - 4 in
Table above
Regulating the Real Estate sector and channelling investment in an organized and
sustained manner 7 in table above.
Funding support for establishing Metropolitan Transport Authority 5 in table above.
Funding support for preparation and implementation of EMP 11 in table above.
19.1.4
Main Benefits of the Framework

Provides a comprehensive response to urban issues and challenges
Captures most solutions being aired by experts and funding agencies
Recognises regional and urban issues
Makes environment management as integral part of urban governance
Capable of being replicated
Identifies and addresses specific changes required to transform CMA from being a mere
cluster of ULBs into vibrant units of Urban Local Governments with independent,
functional Institutions of governance.
Integrates most of the current national initiatives and trends.
Allows for prioritization of reforms and time lines
19.3 Recommended Planning & Development Process

In the spirit of 74th CAA and keeping in mind the proposed institutional structure, a bottom-up
Planning Process in two phases could be considered for the CMA, See Table 17 below.
Table 17: Recommended Planning & Development Process
Phases
Recommendations
Phase I
GoTN should expeditiously constitute the Metropolitan Planning Committee with

CMDA functioning as its Secretariat.
CMDA develops draft goals and policies for each of the subject areas in the plan
listed in Section 17(2) of TN TCP Act
Focus group meetings involving Members of the community / civil society to
review and to comment on the goals.
Receive inputs from the Municipalities and Panchayats in the CMA as envisaged
in the Constitution (74th Amendment) Act;
Open house to receive further comments on the proposed goals and policies.
Receive inputs from parastatal / special agencies and institutions
Develop broad financial analysis of projects in consultation with the financial
intermediary.
MPC and CMDA review the comments that were received and make changes to
the goals and policies accordingly
Phase 2
CMDA staff writes draft chapters, and develop draft recommendations to

implement the identified goals and policies.
CMDA review the drafts at work sessions which will include personnel of
parastatal, funding agencies and potential entrepreneurs
Formal CMDA public hearings providing an additional opportunity for the public to
comment on the plan (summary of the issues).
Work sessions to discuss the issues raised.
CMDA approves the draft Plan and forward to the MPC
MPC holds public hearing and work sessions and closes the public record.
Additional work sessions to refine the draft.
MPC adopts the Plan and forward to State Govt. for approval.
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19.4 Enforcement Mechanism

Enforcement function in CMA is falling between several stools resulting in near-total chaos and
violation of all building, health and environmental norms. The present system has not worked and will
not work. There is urgent need for a workable alternative. Enforcement relates to the following two
functions that have now been allocated to ULBs as per the 12th Schedule.
Urban planning including town planning

Regulation of land-use and construction of buildings
These functions need to be turned over to the ULBs and their capacities should be adequately built up
to perform these tasks effectively and efficiently. Provision for this should be made in the proposed
Urban Local Bodies Act. Till then ULBs should carry out this function including demolition of
unauthorized constructions as per the delegated powers of CMDA under T&CP. Act and under their
respective Local Bodies Acts. See also Volume 5.
19.5 Legal Framework

The following points should be read in conjunction with the existing Legal Framework situation
presented in Section 16.11 and Volume 5.
In 1998 Tamil Nadu Urban Local Bodies Act was enacted and the Rules were framed in
2000. Town Panchayats, industrial townships and Municipalities and CMC were brought
under a single classification ULBs. This Act provided more functional autonomy with
higher accountability to the ULBs unlike the previous Acts. This enactment stands
suspended.
In 2003 GoI circulated a Draft Model Municipal Law with principles of participation,
decentralization, autonomy and accountability, urban self-government, reforms in
financial management and accounting systems, internal resource generation capacity,
organizational design of Municipalities, professionalization of the municipal personnel,
and matters connected therewith.
GoI has circulated a Model Nagar Raj Bill to amend the laws relating to ULBs, to
institutionalise citizens participation in ULB functions, setting up of Area Sabha.
GoTN is examining the reports of working groups for enacting a fresh Law taking into
account the Model Municipal Law and Nagar Raj Bill. Objective is to simplify procedures
and improve urban governance. CDPs Institutional recommendations should be factored
into the new Law.
Instead of enacting separate "public disclosure law" and "community participation law as
envisaged in the Reform agenda provisions for these also should be built into the
Common Urban Local Bodies Act to make it comprehensive and compact.
19.6 The Financial Backbone

Drawing on the core competencies of TUFIDCO, TNUDF and TNUIFSL (description given in the
IR) an Institutional arrangement in the form of a financial intermediary should be evolved for
CMA to carry out projects and investments in accordance with the structure, technologies and
methodologies suggested in the CDP and attract national and international financing institutions
for funding and implementation of the investment programmes.
19.7 Institution for Participatory Governance

'Sustainability' is primarily about creating partnerships, building capacities and promoting interorganisational and inter-institutional relationship and co-operation on a long-term basis. Such
relationships and partnerships are best built through a Participatory Process.
To build capacity of ULBs and to ensure the requisite technology, process and fresh ideas flow
into governance, mechanisms are needed to associate credible and effective educational,
business and other organisations into the various layers of the MPC:
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At MPC level
Similar to GIS Centre and MTA
Add technical advisory groups to set standards, guidelines, process, etc.
Focused technical groups with outside expertise
Benchmark and adopt world class standards

Set high, minimum standards at Metropolitan level
Outsource with world class standards
At ULB level
Add empowered tech advisory group at ULB departments

Roads, bridges, storm water, sewage, etc.
Need for special expertise, independent monitoring of quality, standards,
specifications.
Suitable structure needs to be evolved through discussions and interactions with civil society
and given legal sanctity in the proposed Common Urban Local Bodies Act.
19.8 Institutional Development Support

GoTN may consider the institutional alternatives and other related recommendations and take
appropriate decision. Once a decision is taken a proper scheme should be evolved for Institutional
Development Support along with budget, logistics, implementation and monitoring on a medium-term
timeframe. This report however contain a scheme for building the capacity and enhancing the
functional efficiency of the elected representatives, ULB staff and some key institutions delivering
critical and basic services as well as non-state players who would be expected to play important role
in the participatory process.
19.9 Capacity Building

19.9.1
The Need
Capacities of Institutions and those who manage them need to be substantially upgraded to
effectively and efficiently perform the tasks described above. Development of human resources
stands uppermost in capacity building. Training is directly related to better performance of tasks.
Right training not only improves skill required by an individual to perform a given task but also
helps in improving attitude, knowledge and behaviour for taking up more challenging tasks.
Unfortunately this is the weakest point in urban governance and is the main reason for the wide
gaps in administrative effectiveness and delivery of services. CMA is no exception.
It is imperative therefore that good quality training is imparted to the officials and staff of the
ULBs and parastatal/special agencies involved in governance and delivery of services. Such a
capacity building will have two elements Functional and Managerial.
Functional training relates to the specific functional area of the Department or Undertaking
concerned. This involves upgradation of skills, updating knowledge, toning up of systems and
procedures with reference to case studies, case laws, audit reports evaluation studies, reports
of various Committees and Commissions at the State level and all India level, inter-State
comparison, international development and standards. This would largely be an in-house
exercise for efficient performance of municipal functions and delivery of services.
Managerial training involves management orientation, optimising given resources and
implementation of projects with a result oriented approach adopting all modern management
practices. This training would be imparted through professional institutions.
Irrespective of the institutional scenarios described above for planning, implementation and
delivery of services capacity has to be developed for:
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Elected representatives of the institutions
74
19.9.2
Volume 1
Senior officials engaged in planning, formulating DPR, implementation and asset

management etc.
Staff engaged in delivery of services
NGOs and CSOs engaged in participatory governance.
Principal Target Institutions
The principal target institutions in the formulation of CDP and DPRs for Chennai are:
19.9.3
CMDA
CMWSSB
TNSCB
Formulation of first CDP

Formulation of first CDP
DPR for Water, Sewerage sector
DPR for Slum Renewal and Rehabilitation
Capacity Gaps to be Addressed
The following Tables present an analysis of existing Structural and Knowledge Gaps to be
addressed through Capacity Building Programs.
1.
Table 18: Capacity Gaps - Corporation of Chennai
Structural gaps to be bridged
Knowledge gaps to be addressed
Strengthening of Town Planning Department

Strengthening of Works Department
Strengthening of Plan Enforcement
Machinery
Setting up a community wing structured to
carry out participatory development.
Building up capacities through in-house
training by a HRD wing.
Understanding the CDP process and contributing to

its formulation
Supervising of outsourced projects of implementation
Building coordination capacities both internally and
externally with planning and development agencies
Structuring the participatory process in all
developments
2.
Chennai Metropolitan Development Authority (CMDA)
Although CMDA has a strong physical planning capacity it has to develop its capacity in
planning for economic development, environmental management and social development. The
Development Control Regulation enforcement machinery is weak and this is reflected in the
large number of unauthorised developments in CMA.
During the implementation of World Bank Assisted projects it had a good structure for
coordinating metropolitan wide development projects. This is no longer there. Training is
another area of weakness.
The planning and implementation of the CDP calls for integrated planning of urban renewal
incorporating slum renewal and development and development of composite neighbourhoods
for housing all sectors of society. This gap is to be addressed.
Table 19: Capacity Gaps - CMDA
Creation of economic and social

development wing
Creation of environmental management wing
Strengthening the community development
wing for participatory planning
Strengthening of the DCR enforcement
Integration of physical planning with socioeconomic planning and development and

environmental management as part of the Master
Plan, Area Plans, Urban Renewal Plans,
Neighbourhood Plans.
Capacity to build in informal economy and shelter in
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machinery
Setting up an urban renewal wing
Building up capacities through in-house
training by a HRD wing
3.

Development Plans at the macro and micro levels
to make City plan fully inclusive.
Land Management for using land as a resource for
development
Capacity to convert CDP into Area Investment
Plans for raising quality of life.
Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB)

Table 20: Capacity Gaps - CMWSSB
Creation of a coordinating cell to work with

CMDA, Corporation of Chennai and periurban municipalities and Town Panchayats.
Creation of a wing for conceptualising and
implementing PPP projects
Establishing a holistic Water Resource
Management wing
Community wing for effective participation of
stakeholders
Expansion of in-house training through a
HRD wing.
Integrating CDP projects in water supply and

sewerage with other sectors
Integrating the water and sewerage master plan with
the Master Plan of CMDA
Holistic Water Resource Management including
recycling of waste water, groundwater recharge and
other methods
Rehabilitation of waterways of CMA particularly
Cooum, Adyar and Buckhingham Canal.
4.

Table 21: Capacity Gaps - TNSCB
Strengthening of planning wing

Strengthening of community wing
Creation of a wing for conceptualising and
implementing PPP projects
Expansion of in-house training through a
HRD wing
Integrating BSUP component into infrastructure

component under JNNURM
Composite neighbourhood developments and urban
renewal
Employment and income generation in informal
sector.
Humane approach to slum redevelopment and
rehabilitation.
5.
Urban Local Bodies (ULBs)

Knowledge gaps to be addressed in all the ULBs including the City Corporation are:
19.9.4
Preparation of property maps using latest technology of satellite imagery;

Municipal asset management;
Computerisation of property tax records to support revenue improvement;
Use of GIS applications for asset management, municipal infrastructure and its
operation and maintenance.
Institutional Assessment - CDP and DPR Capacities
In the present scenario Corporation of Chennai is not the appropriate agency to formulate or
updating CDP since it has limited territorial jurisdiction. No line agency except CMDA by its very
nature can prepare the CDP which is a comprehensive City investment plan covering all
sectors. However CMDA although technically equipped to undertake this work is a parastatal
agency without representation by the elected representatives.
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CDP has to be evolved based on a bottom up approach advocated under 74th Constitutional
Amendment. The only institution that will have mandate to prepare the CDP is the Metropolitan
Planning Committee (MPC) envisaged under the constitutional amendment. Unfortunately this
committee has not been set up. As of today this vacuum has to be filled up. This is reflected in
the proposed institutional set up suggested.
The Governance mechanism is structured to make Metropolitan Planning Board (MPB) / MPC
with CMDA as its Secretariat, as the apex body for formulation of CDP.
DPRs are technical documents and they are currently prepared by the line agencies and in the
proposed set up DPRs will be prepared by the special agencies or the special purpose vehicle
which will be accountable to MPB/MPC and the local bodies. Alternatively the preparation of
DPRs can be outsourced to competent consultant by MPC/MPB who should work in tandem
with the special agencies or SPV proposed.
19.9.5
Capacity Building Institutions
There are a number of qualified institutions in Tamil Nadu with appropriate facilities,
infrastructure, faculty and quality to provide the kind of formal Capacity Building required. This
should always be integrated with on-the-job experience through attachments to projects.
19.9.6
Centre of Excellence in Urban Development
Proposals will be formulated to create Centres of excellence in these institutions under the
capacity building programme of JNNURM in consultation with the institutions concerned. The
areas covered would include:
19.9.7
Excellence in planning, development, project implementation

governance,
Managerial and Professional capacity for improving service delivery.
Cutting-edge and crosscutting research and knowledge base.
Awareness about trends in policy in urban sector
Legislative framework within which ULBs function
Leadership skills required for working with various stakeholders
Best Practices and their replication
Management Courses and Workshops;
Networking for sharing and transferring knowledge and experience;
and
urban
Functional In-House Training
To fill in gaps in capacity in the main institutions it is proposed to establish strong HRD wings in
the three principal institutions City Corporation, CMDA, TNSCB and strengthening the HRD
wing in CMWSSB. Specific modules for this training that could enhance productivity, improve
quality, impart work culture and increase job satisfaction should be developed by involving
specialist HRD professionals.
See Volume 5 for details of proposed Training Programs, Workshops and Seminars.
19.10 Funding Required for Institutional Development and Capacity Building

The estimated cost for Institutional Development & Capacity Building reform agenda is Rs.225
million. See Table 22 below.
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Table 22: Project Summary Institutional Development and Capacity Building
Existing/Planned
Proposed "Gap" Filler
New Work
Rehab
TBD: To be decided
Location
Project Name
Existing or
Planned
Proposed New Work

"Gap"
Rehab
Cost (Rs. Million)

Sanctioned Possible
Funding
Source
Lead
Agency
CMA
IR1
IR2
CMA
CMA
Institutional Development
Capacity Building
130.00 TBD
95.00 TBD
225.0
TOTAL COST
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MAWS, CMDA
MAWS, CMDA
Volume 1
20. Traffic and Transportation

20.1 Introduction
Efficient mobility of people, goods and services is essential to economic growth and social
wellbeing. Transportation corridors also form the physical framework for urban and regional
development and typically define the corridors for water, sanitation, power and communication
infrastructure. One of the key issues surrounding traffic and transportation planning and
development throughout the world is a failure to realistically address the socio-economic and
environmental realities of the place. Chennai is a good example where the vast majority of
people move by foot, bike, 2-wheeler or rickshaw, and yet no infrastructure is purpose-built for
this priority need. The focus remains on the 4-wheel motor vehicle - the minority user - with the
result that conflicts occur and no user is properly accommodated. A full discussion of other
informal sector street users is presented in Section 28, Basic Urban Services and Section 29,
Urban Renewal. Refer to Volume 3: Annex 4 for additional details.
Large-scale capital works projects are the subject of separate detailed studies. These are
acknowledged in the CDP, but the focus is on two urban sustainability needs - mobility "gaps":
1.
Optimisation of Street Space Utilisation
2.
Mass Public Transport
20.2 Summary Background and Situation Analysis

Traffic and transport schemes are presently implemented by several departments and agencies.
While long-term planning and coordination is carried out by CMDA, individual schemes are
executed by Southern Railway, National Highways Authority of India (NHAI), Department of
Highways (DoH), Corporation of Chennai (CoC), and Metropolitan Transport Corporation
(MTC). Traffic enforcement is done by Chennai Traffic Police (CTP).
20.2.1
Linkages and Connectivity
Chennai is a major transportation hub for road, rail, air and sea transport connecting major cities
in India and abroad. Chennai has two important sea ports (i) Chennai sea port which is the
largest port in South India, and (ii) Ennore Port. The Chennai International Airport is located in
the southern part of CMA and serves as the city's airport for both domestic and international
flights. Five national highways radiate outwards to the rest of the country, from the city of
Chennai, making Chennai easily accessible and well-connected. See Map 9.
Chennai also has a suburban railway commuter system comprising three routes. for suburban
rail network heading west, north and south-west.
Additional suburban service is provided by an elevated and highly underutilised MRTS (Mass
Rapid Transit System) running south-west and in the process of being expanded. Separate
projects are planned to improve utilisation, including much needed intermodal developments.
Planning for this was not planned in an integrated manner and resulted in the degradation of the
Buckingham Canal as a potential transport and important drainage channel.
Two main railway terminals, Chennai Central and Chennai Egmore serve regional and national
trains from the centre of the City.
The Chennai Mofussil Bus Terminus (CMBT) is located on the Inner Ring Road at Koyambedu
serving all state and national buses, while the Metropolitan Transport Corporation (MTC) runs
an extensive public city bus system within the CMA as detailed below.
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Map 9: CMA Transportation System
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20.2.2
Volume 1
Road Network
Chennai is based on series of radiating roads, 4 major and number of secondary, linked by an
essentially incomplete series of ring roads. A road hierarchy is weakly defined and even less
well maintained. Road issues identified in the SMP include:
20.2.3
Poor quality of riding surface

Inadequate, shrunken and encroached footpaths
Lack of properly designed intersections
Poor lighting conditions
Missing links in the road network
Mismatch between the growth rate of vehicles and road supply
Poor drainage system compounded by cutting for other services
Bus Transport
MTC with a fleet size of 3093 buses is operating along 585 routes. Almost invariably buses run
with crush-load. The overcrowding is as high as 150%. The demand far outstrips supply leading
to inhuman conditions of travel. This could be attributed to the inadequate fleet strength and
poor frequency. MTC has extended its coverage up to 50km beyond the CMA. During 2007-08,
MTC has purchased about 1,000 new buses. It has also introduced a new service known as
deluxe bus at a premium with an objective to encourage those who use personal modes to shift
to bus transport.
20.2.4
Goods Transport
The number of goods vehicles in Chennai has increased from 6,671 in 1980 to 61,255 in 2008.
On a typical day, 78,155 goods vehicles cross the City limits and 35,281 goods vehicles cross
the CBD boundary (CCTS, 2008). Important destinations include the Port areas and a series of
industrial estates. At present the movement of goods vehicles is considered a nuisance and
restrictions are placed on their movement which evidently places an economic cost on the City.
CMDA has taken steps to shift some of the wholesale markets and create truck terminals on the
periphery of the City to ease congestion. A planned dedicated elevated corridor connection to
the Port from NH 4 will help the Truck Traffic as will additional planned truck terminals.
20.2.5
Traffic Safety
Largely due to the incompatible mix of traffic modes, accidents account for approximately 1,100
deaths and 7,000 injuries per year in Chennai.
20.3 Need for Holistic Approach to Project Planning

The absence of multi-sectoral integration in transport planning too often results in ill-conceived,
capital intensive projects that do little to improve mobility for the majority while inflicting
significant damage on the urban fabric, environment and general quality of life. Elevated
flyovers, infrastructure developed along critical waterways, coastal zones and other valued
natural or cultural heritage assets fail to integrate the full range of social, economic, cultural and
environmental realities. This is an institutional short-coming wherein transport planning is left to
transport engineers rather than being determined by the holistic understanding of the city by an
agency such as a strengthened CMDA. Even more critical is the need to fully involve all
stakeholders in discussions prior to any planning being done.
20.4 Optimisation of Street Space Utilisation

Optimisation represents the most cost-effective means of improving traffic and transportation
within the city, particularly in the higher-density areas where road allowances tend to become
multi-purpose, live-work-travel spaces. Ideas for optimisation are listed below with specific
examples of achieving these improvements discussed in Section 29, Urban Renewal. Refer
also to Volume 3: Annex 4. Street spaces in all urban areas are subject to multi-use and all
must be catered for:
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Vehicle Users
Public Transport
Pedestrian
Commercial Establishment
Parking
Informal Sector (Street Vendors & Auto Drivers)
Utility Service Providers
Optimisation can be achieved through a wide variety of initiatives:

Pedestrian Safety Policy and Design Standard
Pedestrians should have access to sidewalk at all public rights-of-way.
Sidewalk should be continuous without encroachments, utility boxes, etc.
Standard Curb cut Ramp should be provided at each entry and exit point.
Cycling facilities
White or yellow lines on roads indicating the cycling priority space on the road
Construction of dedicated bicycle lanes perhaps like the 'Copenhagen model' where the
road starts with a footpath followed by a dedicated cycling path followed by parked cars
followed by carriageway. This will only be needed for some roads (perhaps arterial roads)
where vehicle speeds significantly decrease cyclist safety.
Construction of dedicated cycling paths for the purpose of recreational riding (as opposed
to transportation riding). Link to places of interest - Adyar Poonga, Beachfront etc.
Parking
Parking standard for commercial and residential development should be improved in the
CBD areas at least 1.5 times of the current standard
Traffic Impact fee can be levied on the existing buildings which houses/attracts more than
permitted number of vehicles due to change in nature of building
On-street Parking should be delineated along all the main road
Loading and Non Loading Zone also to be delineated along the road
No-Hawker Zone delineation

Bus Terminus and Bus Bay
Upgrade/expand Bus Terminus to handle the current/future level of Buses population
Improve surrounding road networks to accommodate bus traffic
Bus Bays are mandatory on all the main roads to avoid Traffic Flow interruption.
Signage
City should have signage, which directs people from any part of the city to desired
location.
Signage should be standardized and no standard signage's should not be allowed in

public right of way.
All the signage should be controlled by one agency.

Intersection Redesign
Intersections are special areas of any road, which invariably should be wider than street
right of way.
Predominantly, Chennai Roads intersection are same width as typical road width which
causes traffic queuing
Grade Separator option should be the last resort for intersection Improvement. Adding
exclusive Left lane and Right Lane with physical barrier at each leg of Intersection will
greatly improve the Traffic Flow
Signal Timing shall be optimized after Roadway geometry improvement.
Free Left Lane can be added in all the intersection immediately with minimum cost, which
can improve traffic flow and pedestrian safety.
Automatic Detection of vehicles loop can be added in the existing pavement, which will
improve the Green Time on the essential leg. This will also help reducing the need for
Traffic police at every intersection.
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Roadway geometry Redesign
All new projects shall be designed as a Lane Driven Geometry

Pavement Repair and Maintenance
Pavement should be repaired with international standards
Any trenching activity by utility agencies shall be immediately restored to original

pavement condition without a delay.
Pavement repair of international standard should be a part of the trenching contract

tendered by utility agency
Traffic Engineering Planning Permit
Any major development, which attracts floating/permanent traffic, should be scrutinized

with the Traffic Engineering viewpoint and permitted.
Chennai Citi Centre is the typical example of how this development caused Traffic
problem of Dr. Radha Krishnan Road since it witnesses more vehicles than permitted.
Access to this development is also poorly designed since it does not account for number
of vehicles/minute should be entered into the building by its peak time.
Access Management
Properties, which abut more than one road, should have access permit only on the road
with less traffic or side road.
Any commercial activity which attracts floating traffic should not be permitted at the
intersection of any road.
Properties should be given access permit to public right of way only as exit and entry with
specified dimension for opening. This is intended for managing the vehicles movement
from properties to right of way; opening/gate along the entire width (frontage) should be
strictly not permitted.
Vehicular Typology Management
All the Roads shall be categorized as Major Arterial, Minor Arterial, Collector and
Neighbourhood Street
Auto and Share Autos can be restricted as feeder only. In other words, they will not be
allowed on the Major Arterial Roads (ex- Mount Rd) whereas they will be allowed to cross
through collector.
Tricycles and other slow moving vehicles shall be restricted to neighbourhood roads only.
Roads, which are less than 5m in width, shall not be allowed with any big vehicles other
than Bicycle and Two Wheelers.
Land Development Manual and Standards
Land Development manual needs to be developed for Chennai which should have all the
Engineering/Architecture standards and detailed Guidelines for any development
including water network, sewer network, Electricity, Roadway, drainage, Telephone (Data
Network), urban design, landscape etc..
Urban Design and Conservation
Historical Areas shall be conserved, any new building should reflect the architectural
character of the place.
Urban Design Guidelines shall be prepared for Chennai City to maintain the character
and architectural control.
Redevelopment of MRTS stations
To address issues of the particular neighbourhood including inter-modal transport

facilities. This may include parking, commercial development, art gallery etc.
Turn Lanes Program
Adding Right/Left Turn Lanes at intersections where feasible without diminishing

pedestrian space.
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Center Line and Median Realignment to suit Traffic Demand
Vary median alignment to suit flow requirements including creation of centre turn
lanes.
20.5 Mobility Hubs

Inter-modal (pedestrian, car, rickshaw, bus, train) car, connectivity is critical to develop an
integrated, efficient and user-friendly mass public transit system. Development of these Hubs is
required throughout the CMA. Further details are given in Volume 3: Annex 4.
20.6 Grade Separator Facility

Grade separations, if judiciously used, can improve mobility. Overpasses for pedestrians
typically do not work as they impose too much inconvenience on pedestrians. Underpasses
require far less grade separation, but need attention to cleaning and security. Road flyovers
constructed throughout Chennai are examples of non-integrated planning, are of questionable
overall advantage in most situations, serve a minority of street users and negatively impact on
street life, pedestrian movement and urban character. Traffic management through the
optimisation options listed above are more cost effective and city-friendly and should be the
priority interventions.
20.7 Ownership of Right Way

Although all road space is officially owned by ULBs and Highway Departments, actual
ownership is far more complex with the wide variety of street space uses discussed above.
More formal recognition of "user rights" to portions of the space are required to optimise
utilisation.
20.8 Additional Improved Mobility Suggestions

20.8.1
Transit System
Optimisation ideas include:
20.8.2
Moving Bus Terminus and Bus Stops closer to Railway Network to help improve
connectivity;
More air-conditioned buses on certain routes throughout the city;
Mini-buses introduced to optimize revenue;
Color Coding Bus services based on direction of service with intermodal stops;
Improved quality of service (schedule, vehicles, etc.) in areas of greatest need, the lowerincome North Chennai, where reliance on affordable public transit is highest.
Bus Rapid Transit System (BRTS) Links
BRTS link needs to be studied throughout the city, particularly in areas not covered by the rail
network.
Refer to Volume 3, Annex 4 for the following sub topics;
LB Road Optimization Design Case Study

MRTS case Study
Need for a Transportation Management Centre
Table 23 summarises planned and proposed "gap" mobility projects. See Part E for a discussion of
prioritisation.
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Table 23: Project Summary - Transportation

Existing/Planned Project
Proposed "Gap" Project
# Location
CMA
1
2
3
4
5 CoC
6
7
8
9
10
11
12
13
14
15
CMA
16
17
18
19
20
21
22
23
24 CoC
25
26
Main Report
Project Name
Existing/ Proposed
Planned
"Gap"
Project
New Work
Rehab
New
Work
TBD: To be decided
Rehab
Cost Rs. Million
Work
Sanct.
Possible
Funds
Cost
Urban Rail Transit System

Augmentation of rail network
MRTS extension to Velacherry
Beach to Korukkupet (4.1km)
Korukkupet to Athipattu (18km)
Urban Bus Transit System
New 11 Bus terminals & 26 depots
Chennai Metro Project
Washermanpet to Airport
Central- St. Thomas Mount
BRTS
Along City waterways
Development of Freight Facility
Elevated Highway along Cooum
Truck terminal on NH-45, & Manali
Elevated Highways
From Light House to Kottivakkam
Along City Waterways (52.6km)
OMR link from Adyar Elevated Highway
Along Thiruvottiyur High Road to Ernavore
Along Rajaji Salai upto Toll Gate
Interchange
Interchange at NH4@Thiruvallur street
New Link Roads
Tambaram Eastern Bypass
ORR from NH45 to TPP Road :
Outer Ring Road from ECR to NH45
ORR from Seemapuram to Ennore Port
Link of ORR from MBI Road to OMR
Ambattur Estate to ORR
IRR south Mount St. Thomas - OMR
Link of OMR to ECR (Prathana)
Link of OMR to ECR at Palavakkam
New Avadi Road/Medavakkam Tank Road
Link of Valacherry to OMR
Funding
Source
Lead
Agency
State&Cen SR
State&Cen SR
State&Cen SR
MTC
2451 JNNURM
State/Cen CMRL
CMRL
CMRL
Links and
Comments
Projects already approved and ongoing
TNUDF III TNUDF

State&Cen NHAI
DoH
TBD
JNNURM
TNUDF III CoC
Will improve mobility
JNNURM NHAI
JNNURM NHAI
Will improve Connectivity
TBD
450 State
PPP
1570 State
934 State
600 State
1500 State
State
300 State
300 State
50 State
State
85
DoH
DoH
DoH
DoH
DoH
DoH
CoC
CoC
CoC
# Location
27 CMA
28
CoC
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
Project Name
Volume 1
Existing/ Proposed New Work Rehab

Planned
"Gap"
Work
Project
Multi-lane Widening
Four Lane Widening TPP road
6 Lane divider Road at Thiruvalluvar St
Major Flyovers
Madhya Kailash junction
LB Road junction at Thiruvanmiyur
Anna Salai x Blackers Road junction,
Anna Salai x General Patters Road
Anna Salai x Binnys Road
Bazzulah Road Flyover
Anna Salai x Eldams Road
Cenatoph Road junction
VenkataNarayana Road x Chamiers Rd
At Perambur crossing rail line
CIT I Main Road junction
Anna Salai X Sardar Patel Road
Periyar EVR Salai X Nelson Manickam
Periyar EVR Salai x Anna Nagar III Ave.
IRR x Anna Nagar II Ave
IRR x Arcot Road
GNT Road X Madhavaram High Road
Mount Poonamallee Rd x Kundrathur Rd
Taramani Link x M.B.I.Road
M.P.road x Poonamallee Kundrathur Rd
Madipakkam Rd x Pallavaram Rd
Anderson Rd Medavakkam Tank Road
At Anna Nagar Round about
New Avadi Road x Kilpauk Garden Road
At Thiruvallur Street
At Kaliammam koil Street
Mini Flyover
Cost Rs. Million

Sanct.
Possible
Funds
Cost
Funding
Source
NHAI

Will help in Traffic Congestion
Coc
TNUDP III
TNUDP III
TNUDP III
TNUDP III
JNNURM
220 TNUDP III
199 TNUDP III
TNUDP III
510 JNNURM
Coc
Will Improve Connectivity

1500
300
1250
820
750
300
300
320
300
300
428
284
600
600
600
300
300
150
TNUDP III
TNUDP III
TNUDP III
TNUDP III
TNUDP III
JNNURM
State
JNNURM
JNNURM
TBD
TBD
TBD
56
Bridges/Culverts/ROB/RUB-Widening
4380 State Fund
57
86
Needs to be justfied by further study

CoC
CoC
CoC
Project almost Complete

Project almost Complete
Needed for Service level of IRR
Needed for Service level of IRR
Will improve connectivity

1260 CoC
Road Widening
Links and
Comments
NHAI
TBD
55
Main Report
Lead
Agency
Project Name
# Location
Volume 1
Existing/ Proposed New Work Rehab

Planned
"Gap"
Work
Project
Cost Rs. Million

Sanct.
Possible
Funds
Cost
Funding
Source
Lead
Agency
Links and
Comments
Optimization Gap Projects

58 CoC
59
60
61
62
63
64
65
66
67
Nungam. High rd (From Beach to NH-4)

Greenways Road/Sardar Patel rd (From
Santhome Church- GST rd)
Kodambakkam High Rd. (Gemini - IRR)
ECR (From Thiruvanmiyur to Kottivakam)
Velachery Main Rd (OMR - GST rd)
Mint St.(From Central to Thiruvottiyur)
IRR Restoration (Kathipara-CMBT)
Cycle track
Gandhi Nagar neighbourhood
Under MRTS at Certain Segment
Missing Links
From Prop.elevated Adyar rd to OMR
Railway station improvement
250
300
300
150
250
150
150
10
20
1300
68
City Wide Railway Station Improvements

BRTS
150
69
BRTS study for North Chennai

Standards and Guidelines
Standards and guidelines for transit node
Standards and guidelines for roadway
Guidelines for peds/cycle path
Land Development Manual for CMA
Bus terminus Relocation
20
70
71
72
73
74
75
76
77
78 CMA
Will improve the efficiency & convenience

Highly recommended based on Local
Conditions
10
10
10
10
Will help streamline Project Planning &

Execution
Mandaiveli bus terminus relocation

Adyar bus terminus relocation
Thiruvanmyur bus terminus relocation
MRTS stations improvement
MRTS airspace exploitation
Mobility hubs
500
500
500
Will improve the efficiency & convenience
Near St. Thomas Mount (MRTS & Metro )
235
Will improve the usage of the Space
Total CMA
Total CoC
12,420
16,531
TOTAL
Main Report
Will improve mobility in more economical

manner.
28,951
87
Volume 1
21. Waterways Management

(Note: A separately prepared Pre-Feasibility Study (PFS) address this sector in detail. The following provides a
summary in line with ensuring the CDP is a comprehensive development document and recognises that linkages
exist between all sectors. Information presented here is from the PFS Final Report)
21.1 Introduction
Chennai suffers a number of waterways-related problems including regular flooding and a
variety of health issues because of poor storm water drainage, lack of management, and
deficiencies in other sectors including Solid Waste Management and Sanitation, and
encroachment. Addressing Waterways Management thus is priority in Chennai Metropolitan
Area.
21.2 Major Waterways

The waterways of Chennai Metropolitan Area (CMA) are east flowing rivers Kosasthalayar,
Cooum and Adayar between its north and south borders, flow directly into the Bay of Bengal. A
major canal, namely, Buckingham Canal that traverses parallel to the coast has also
considerable importance in shaping up the water environment of this city.
21.2.1
Present Condition
The condition of waterways in Chennai urban environs was reasonably healthy and pollution
free till middle of the last century. However, the current condition of these waterways is highly
deplorable because of severe pollution and reduced carrying capacities. This can be attributed
to cumulative effects of more than a century of settlement and land use, and the resultant urban
pressures on the waterways. In the CMA beyond Corporation area, municipalities, and town
panchayats that lie on either side of the river, discharge wastewater either directly or by feeder
drains into water bodies. The wastewater discharged into water bodies may spill over into the
river, especially during rainy days in diluted condition. In the CoC area, which is densely
populated, both treated and untreated sewage is let out into rivers from various outfalls.
Currently, untreated sewage is observed to be let-out from around 109 and 70 sewage outflow
points into the stretch of 17.98 km of river Cooum and the stretch of 14.6 km of river Adyar
respectively. Though the length of river Kosasthalayar is 155 km, it traverses only for a relatively
short distance in the CMA. This river joins Ennore estuary, which is highly polluted by the
industrial effluent in addition to domestic sewage from some of the areas of the adjoining urban
local bodies along its course. The total length of Buckingham Canal within Chennai Metropolitan
Area is 48.3 Km. The effect of urbanisation and industrialisation in and around the city and
discharging waste water into it has gradually made this canal converted to a virtual open sewer.
In addition, waterways are encroached at many places constricting the width of the rivers to
carry high floodwaters without overtopping their banks and embankments and entering into
habited areas. Dumping of solid waste and construction debris either directly into the rivers or in
their feeders is also one of the major reasons for not only for obstructing free flow of floodwaters
but also of leachate entering into the system. Construction of bridges and causeways without
sufficient vent to carry waters and without hindrance under changed catchment conditions had
led to formation of afflux at many a place in the river courses and causing inundation in adjacent
areas during high flood conditions.
Overall conditions of these waterways can be rated very poor because of high loads of
sediment and nutrients, high turbidity, highly obnoxious odours and very low levels of dissolved
oxygen. Apart from this, ability to discharge floodwaters during high floods without inundation
and carry low flows to meet environmental needs without stagnation is also uncertain for the
reasons cited above. Formation of sand bars in the mouth, obstruct free flow of water leading to
stagnation of water mixed with waste in the river. In addition, construction of marine structures
near river mouths may also have adverse affects on the sustainability of river mouth opening.
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88
21.2.2
Volume 1
Urban Development Growth Corridors
In the 2nd Master Plan (SMP) it is envisaged to encourage development officially in the 4
corridors that have already started witnessing growth in the last few decades. These corridors
emanate radially from the city in 4 directions. The SMP also anticipates development in the
unfilled areas between growth corridors due to recently laid ring roads. The population densities
along the waterways in the City are already high while those in the peri-urban areas are
moderate. With the implementation of these growth plans or upon realization of anticipated
development, the areas along the waterways would turn out to be densely populated. The ULBs
covered by both the planning documents for future growth along the waterways are .
Table 24: Areas for Future Growth along the Identified River Corridors
Growth Corridor
Waterway
West Corridor
River Cooum
South-West Corridor
River Adyar
North-East Corridor & South IT

Corridor
Buckingham Canal
North-East Corridor
River Kosasthalayar
21.2.3
Areas for future growth
Chennai Municipal Corporation

Avadi Municipality
Ambattur Municipality
Valsaravakkam Municipality
Poonamalle Municipality
Maduravoyal Municipality
Porur TP
Alandur Municipality
Tambaram Municipality
Ullagaram-Puzhathivakkam Municipality
Pallavaram Municipality
Anakaputhur Municipality
Pammal Municipality
Chitlapakkam TP
Tiruvottiyur Municipality
Kattivakkam Municipality
Chinnasekkadu TP
Madhavaram Municipality
Manali municipality
Perungudi TP
Pallakaranai TP
Sholinganallur TP
Tiruvottiyur Municipality
Kattivakkam Municipality
Waterways Rehabilitation
Strategy for Waterways Rehabilitation
A number of problems have been identified that are causing deterioration of the quality of water
in the waterways and efficient functioning of waterways that they are intended to. The adopted
Strategy for Waterways Rehabilitation is to prepare an integrated set of actions that all the
stakeholders should be committed to implement in parallel to achieve better results in timely
manner. The strategy intends to achieve pollution free and environmentally acceptable
waterways that would lead to overall improvement of environment in the CMA:
Primarily
by improving flushing capacity of waterways to discharge pollutants into the sea; and
by improving the carrying capacity of the waterways during high floods and low flows.
Main Report
89
Volume 1
And sustained
by reducing point source pollution caused by sewage in the growth corridors along
waterways;
by improving overall environment and reduce non-point source pollution from storm water;
and
by reducing non-point source pollution caused by solid waste.
21.2.4
Proposed Projects per River Catchment
Cooum River Rehabilitation Package
The total length of the river meandering in the CMA for over 41 km has been divided into 4
reaches. The division is made based on a host of factors like possibility for flushing by tidal
action, severity of sludge and waste deposition, gradient, urbanization along the river and other
specific characteristics that are common to each reach. They are named as the Coastal reach,
the Central City reach, the Outer City reach and the CMA reach.
Adyar River Rehabilitation Package (2 options)
The total length of the river meandering in the CMA has been divided into 3 reaches. The
division is made, as explained above for Cooum. For development of the reach Kotturpuram
Bridge to sea mouth two options are considered:
Option I
Deepen estuary portion to (-) 2 meters from the mouth of the river (of width of 400 m) to
Kotturpuram bridge (of its existing width) with adequate protection to banks using pre-cast
concrete blocks over 1.5:1 slope.
Option II
In this option, in addition to proposed deepening and re-grading of river bed by dredging and
other means, the banks of the river are proposed to be retained with RCC buttress walls over
sheet piles to facilitate a comprehensive river front development and eco-restoration.
Kosasthalayar Rehabilitation Project
To arrest the problem of frequent flooding, it is proposed to raise the flood bank to a height of
+9.44 m against the existing top level of around +7 m for a length of 12.80 Km. The observed
maximum flood level being 7.94m, the tank bund level is fixed 1.5 m above the maximum flood
level. The front and rear bund slopes are proposed 2:1 gradient to maintain the surface of the
slope well above the phreatic line for maximum flood conditions. Regulators are provided for
drains joining the river. Protection walls for the vulnerable reach near Edayanchavadi,
Napalayam and Sadayan kuppam villages for a length of 1900m are proposed to streamline the
flood and route it to the tail end without inundating agriculture lands and villages on both sides
from Napalayam Bridge up to sea mouth.
Buckingham Canal Rehabilitation Project
To rehabilitate this vital link between the rivers in CMA rationally under a comprehensive sub
basin approach, projects for disposal of storm waters projects have been formulated for the
eastern basin of CMA.and approved recently for widening, deepening besides protecting the
side slopes etc. along with preventive measures like fencing to avoid solid waste dumping.
21.3 Overview and Analysis of Existing Storm Water Drainage

The storm water drainage system in Chennai formally comprises 882 km of drains in a
combination of macro and micro components. A total of 2,847 km of road also serve as surface
drains. The CoC is responsible for provision and maintenance of adequate storm water
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90
Volume 1
drainage in the city area in accordance with the statutory provision, Section 176 of the Chennai
Municipal Corporation Act, 1919. The mandate for development, maintenance and management
of major drainage systems such as rivers, streams, water bodies is given to PWD.
Regular problematic flooding occurs in two forms: minor flooding that occurs every monsoon
season, and major floods that may occur every 15-20 years. Minor flood waters may be in the
order of 0.1 to 0.3 meters deep, drain away after a few hours, but cause major traffic disruptions
in the meantime. The main reason for this nuisance of periodical minor flooding is inoperative
and inadequate storm water infrastructure for a variety of physical and institutional reasons.
21.4 CoC Storm Water Gap Analysis

The CoC has taken major initiative to mitigate the flooding problems and destruction caused by
both low intense recurrent rains and high intense intermittent rains due to cyclonic activity and
has prepared Detailed Project Report for Micro and Macro Drainage. The reports cover both
waterways and storm water drainage sectors and proposed to be progressively implemented
under JNNURM programme.
21.5 Municipalities - Storm Water Drainage

Storm water drainage infrastructure in most of the municipalities is either non-existent or
inadequate. A few municipalities including Alandur, Pallavapuram, Tambaram and Ambattur are
provided with substantial drainage systems, and Ambattur is implementing a comprehensive
program with funds from TNUIFSL. The rest of the municipalities have grossly inadequate storm
drainage facilities. Planning and design of drainage systems are deficient and typically not
integrated with the drainage in the surrounding catchment areas. There is a necessity to
prepare proper drainage master plans and detailed engineering reports for all the municipalities
and towns. Details of storm water conditions in each of the 16 individual municipalities are found
in the PFS Report. Numerous projects are currently underway, but very significant service and
funding gaps remain to be filled.
21.6 Town Panchayats - Storm Water Drainage

The majority of the Town Panchayats are provided with no storm water drainage system.
Meenabakkam and Porur are exceptions. The onus of development and maintenance of storm
water drainage system is on the concerned Town Panchayat. A gap analysis again identifies a
significant need for further funding and service improvement.
21.7 Overview and Analysis of Waste Water and Sanitation Management

Wastewater and Sanitation Management have significant impacts on waterways management
with deficiencies in what are supposed to be separate and treated systems causing overflow
and serious pollution in waterways. Refer Section 23.
21.8 Overview and Analysis of Solid Waste Management

Solid Waste Management has significant impacts on waterways management as without the
system being adequately implemented and managed there are always chances of being
dumped into water ways as also the sea water ways being polluted through leachate infiltration.
For summary of the PFS report see Section 24.
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21.9 Cost Estimate

Cost summary of waterways rehabilitation projects is given in Table 25 below.
Table 25: Cost Summary of Waterways Rehabilitation Projects
River Rehabilitation Package
Indicative Block Cost Estimate (INR Million)
Cooum River
4,000
Adyar River (Option 1)
2,150
Adyar River (Option 2)
2,900
Kosasthalayar river
160
Block cost estimates of drainage requirements are summarised in Table 26A and Table 26B. While
Table 26A gives the cost for priority 1 sub projects aiming at to improve the conditions in the
designated water ways growth corridors, the priority 2 is for improving drainage conditions in
remaining ULBs is given in Table 26B.
Table 26A: Summary Cost Estimates of Priority-1 Drainage Systems
Growth Corridor
Cooum River Growth Corridor
9,500
Adyar River Growth Corridor
550
Buckingham Canal growth Corridor
1,100
Total in INR (million)
11,150
Table 26B: Summary Cost Estimates of Priority- 2 Drainage Systems

Description
Construction of collecting and feeder drains
4,900
Silt Catch pits with SFRC cover and inlet
650
Other ancillary structures
0.700
Sub Total
5,550
Engg, Contingencies, Admn. Charges
270
Total in INR (million)
5,820
21.10 Financial Perspectives Waterways Management and Storm Water

Drains
The waterways and drainage system in the Chennai Metropolitan Area (CMA) is classified
according to two levels:
Main Report
The Macro level, which consists of rivers, tanks, surplus channels and open drains
serving as flood moderators, which drain the rainfall received in the catchments areas
of CMA is maintained by PWD; and
The Micro level, which consists of 855 km of storm water drains within the Chennai
city is maintained by CoC. The suburban towns in the CMA have open drains
maintained by the concerned local body.
92
Volume 1
The Water Resources Department (WRD) of the PWD is responsible for maintaining the
waterways of Chennai. The storm-water drains are the responsibility of municipal bodies, CoC
for the city and municipalities for areas beyond the CoC area. The responsibility of managing
the sewage flow into the waterways is with the responsibility of CMWSSB.
Public Works Department gets assistance from the state budgetary support for maintaining the
waterways in Chennai. The State Government allocates funds under various schemes
sanctioned by the Central and State Government.. PWD would be the responsible department
of GoTN to execute the projects proposed for waterways rehabilitation.
In the recent past, CoC de-silted all the 16 canals for a length of 27.921 km at a cost of Rs.370
Lakhs. In order to avoid stagnation of rainwater, CoC increased the annual budget allocation
gradually since 1996-97 onwards and constructed more number of drains within the city. The
flat terrain of the Chennai City necessitates effective Storm Water Drainage system to prevent
water stagnation in roads. In addition to construction of new drains, CoC also carries out
structural repairs to Storm Water Drain Network and canals periodically.
The funding for infrastructure development of storm water drains, and its operation and
maintenance is out of accruals from general taxes levied by each ULBs in CMA. In addition to
taxes, general devolution of funds by the Government of India, and Government of Tamil Nadu
under various schemes also funds development of storm water drains. There are no separate
user charges or earmarked taxes levied. Expenditure for storm water drains would depend on
the infrastructure requirement of the whole city to keep it free from water logging during rains.
As understood, the flat terrain of the Chennai city necessitates effective drainage system. As
requirement of a comprehensive drainage network relates to the whole city and not to individual
users or citizens, user charges are usually not levied. Future capital investments would depend
on the gaps identified in infrastructure within the Chennai city and other ULBs. The CoC is
spending an average of Rs. 65,317 per km per annum for repairs and maintenance of storm
water drains. Thus, the requirement for operation and maintenance would gradually increase
over the years, for which adequate funds must be set aside and if possible earmarked for future
needs. The enabling legislation for CoC specifies that CoC would spend for public drains, only if
they have means at their disposal; hence, setting aside funds judiciously for maintenance of
public drains is necessary.
Section 176 of The Chennai City Municipal Corporation Act, 1919 specifies that the Corporation
shall, so far as the means at their disposal permit provide and maintain a sufficient system of
public drains throughout the city. Harmonious interpretation of this particular section deduces
that construction and maintenance of the public drains is specifically dependent on the
availability of funds (means at their disposal). ULBs, usually do not levy user charges for
provision and maintenance of public drains; hence, the source of funds to maintain the public
drains is the general taxes that a ULB levies. Section 182 provide that the Commissioner may,
by notice, require the owner or occupier of any building or land adjoining a public street to
construct culverts or drain coverings over the side channels or ditches at the entrances to the
said building or land. Interpretation of this section deduces that the responsibility for
constructing and maintaining the culverts or drain coverings adjacent to any building lies with
the owner of the building, if the Commissioner serves a notice on the owner of the building.
Therefore, to generate or mobilize funds for storm water drains, CoC would have to depend on
the general taxes, and further depend on devolution of funds. To provide complete and
integrated storm water drainage network, CoC requires adequate quantum of general fund. As
analysed, there is overall financial stability of CoC in the matter of general funds. However, a
good financial stability would not mean betterment of storm water drainage as there are many
other activities that would require financing from the general funds; nevertheless good financial
stability would mean more allocation of funds for various sectors, of which storm water drainage
is an integral and important sector for Chennai city.
The CDP April 2006 proposed investments for Storm Water Drainage, Macro Drainage for CMA
and renovation of lakes at an estimated cost of Rs. 14,238.4 million.. As of February 2009,
MoUD approved projects of Rs. 14,479.04 million.
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93
Volume 1
As per the JnNURM guidelines, the funding share of the project, applicable for Chennai Urban
Agglomeration (CUA) would be:
Government of India: 35% - Rs. 5,067.72 million;

Government of Tamil Nadu: 15% - Rs. 2,171.88 million;
CoC and PWD: 50% - Rs. 7,239.6 shared by CoC and the PWD according to their
respective value of works;
CoC has been maintaining 855 km of drain network and about 27.921 km of canal network. On
an average CoC is spending Rs. 55.85 million per year on repairs and maintenance.
Considering the fact that CoC maintains a network of about 855 km of storm water drains, and
then in that case CoC is spending an average of Rs. 65,317 per km per annum for repairs and
maintenance of storm water drains.
Analysis of Grant and expenditure on the maintenance of waterways by PWD is provided at
Volume 4, Annex 2
Table 27 summarizes the total financial requirement concerning the Storm Water Drains sector
in the CMA.
Table 27: Requirement of Finance- Storm Water Drains
(Figures in Rs. million)
Projects Identified until 2026 under the CDP Review
Less: Share of GoI and GoTN concerning approved projects under JNNURM
Amount required to finance identified projects under Storm Water Drains
46,299.04
7,239.52
39,059.52
22. Water Supply

22.1 Introduction
Adequate water supply is a major issue in CMA. Largely as a result of environmental
mismanagement and inadequate institutional attention to the problems, Chennai is facing water
supply shortages which are leading to increasingly desperate actions including long-distance
piping and desalination.
Piped water supply was first introduced to Chennai City in 1872. Major steps to supply
organized potable water supply to the city started with construction of a masonry conduit to
convey water from Redhills to Kilpauk in 1914 with incremental development taking place after
that. Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) was formed in 1978,
as a statutory body with responsibility for planning, implementation and O&M of water supply
and sewerage services. Although CMWSSB's mandate is for the entire CMA, to date their
functions are primarily restricted to the limits of CoC. Major supply interventions continued
through 1980s and 1990s. Funding sources included assistance from World Bank and bi-lateral
agencies and HUDCO.
22.2 Summary of Background and Situation Analysis

22.2.1
Source of Water Supply
Water supply for Chennai is drawn from three interconnected reservoirs located at Poondi,
Cholavaram and Redhills which collect and store flows from Kortalayar, Nagari and Nandi
Rivers and direct run off catchments. Maximum usable storage capacity is 209 million m3, of
which Poondi and Redhill reservoirs contribute 91 and 93 million m3 respectively. In addition,
water is drawn from Veeranam tank (41 million m3), located 230 km south of Chennai.
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Volume 1
Chembarambakkam tank (103 million m3), 12 km west of Chennai is also used that agricultural
activities around Chennai have drastically declined. See Table 28.
Table 28: Existing Tanks/ Reservoirs
Reservoir/ Tank
Max. Water
Elevation
(meter)
Drawl off
Elevation
(meter)
Max. usable
Vol. (million
cm)
Full Surface
Area (million
sft)
Mean
DrawlDep
th (meter)
Catchment
Area (Sq
Km)
Poondi
42.67
34.14
91.44
376.74
8.53
1,983
Cholavaram
19.66
14.22
24.93
55.76
5.44
28
Redhills
15.30
8.59
93.39
195.15
6.71
60
Veeranam
14.48
12.34
41.46
NA
2.14
422
Chembarambakkam
26.03
18.72
103.15
711.18
7.31
Total
357
354.37
2,850
Additional Chennai water sources include:

1.
Telegu Ganga Project

The project will provide 15 TMC from Kandaleru reservoir in Andhra Pradesh.
Chennai will receive 930 MLD of water when fully completed.
2.
Ground Water Potential

The Chennai has limited shallow aquifer potential. The potential from the deep
aquifer is more restricted with identified sources declining from 180 MLD in 1969 to
6 MLD in 1987 partially through failure to protect re-charge zones. However, a study
is under way to reassess the ground water potential in Araniayar-Kortalayar basins.
3.
Sea Water Desalination

Chennai is embarking upon the construction of desalination plants in an attempt to
compensate for poor land-based water resources management over the past
decades. Two desalination plants are planned/under construction estimated to cost
Rs 20,000 million. An emphasis on land use planning and enforcement, protection
of water catchment areas and re-charge, management of water ways, rehabilitation
of water supply systems, rain water harvesting, and elimination of industrial and
domestic pollution would be a more economically viable and environmentally
sustainable approach.
22.2.2
Water Availability
Water is a scarce commodity as outlined above. A range of sources should therefore be utilised
with an increased emphasis on sustainably and managing those that currently exist. Table 29
indicates CMWSSB's estimate of 1,957 MLD available, including those to be tapped in the
immediate future.
Table 29: Water Availability
S.No.
Source
Poondi- Cholavaram Red Hills lake system
227
Ground water from Northern Well Fields
68
Southern Coastal Aquifer
Krishna Water (Telegu Ganga Project)
837
Veeranam Project (CWSAP- I )
180
Veeranam Project (CWSAP II)
20
Sea Water Desalination at Minjur: under construction and to be commissioned in

early 2009
100
Sea Water Desalination at Nemmeli : Proposed and expected to be completed

end 2011
100
Main Report
Quantity in
MLD
95
Volume 1
S.No.
Source
Quantity in
MLD
Reuse of Secondary Treated Waste Water
10
Local Ground Water Sources
180
240
TOTAL
22.2.3
1,957
Water Demand in CMA
The SMP presents 3 water demand scenarios considering different per capita supply rate for
various categories of local bodies and considering various percentages of domestic water
demand as commercial & institutional demand and industrial demand. The water demand
works out to 2248 MLD for Scenario I. Table 30 presents details of such estimated demand.
Table 30: Water Demand in CMA
Category of Local
Body
2026
Pop
(Million)
Per Capita
Domestic
Supply(l /
day)
Domestic
Supply
(MLD)
Commercial &
Institutional
Demand (MLD) (1.)
Industrial
Demand
(MLD) (2.)
Total
Demand
(MLD)
Chennai
Corporation
5.856
150
878.4
263.5
87.8
1229.8
Municipalities
3.569
125
446.1
133.8
44.6
624.6
Town Panchayats
1.221
100
122.1
36.6
12.2
170.9
Village Panchayats
1.988
80
TOTAL
12.63
159.0
47.7
15.9
1605.7
481.7
160.6
222.7
2,248
The estimated demand reduces to 1750 MLD and 1360 MLD In Scenario II and Scenario III
respectively as per estimates in the Second Master Plan. In Scenario II domestic water supply
rate has been considered as 120, 100, 80 and 70 litre capita day respectively for CoC,
municipalities, Town Panchayats and Village Panchayats. Commercial and Institutional
demand has been taken as 25% of domestic demand. In Scenario III, domestic supply rate
have been further reduced to 100, 75 and 60 litre capita day, respectively. For Commercial and
Institutional demand, 20% of domestic demand has been considered.
The gap between supply and demand is in the order of 15% which requires a combination of
conservative resource utilisation with sustainable supply supplementation in the order of some
290 MLD. Existing regulations require rain water harvesting and waste water reclamation for
centrally AC buildings. Some positive results are noted. Rigid enforcement is however
required.
22.2.4
Water Treatment
Table 31 summarises available treatment plant capacity. The available capacity appears to be
high as the current water supply level to support it is lower than the anticipated levels and would
suffice even when a full water supply is available.
Table 31: Details of Treatment Plants
S.No
Location
Capacity (MLD)
Kilpauk
270
Red Hills
300
Veeranam
180
Chemberambakkam
530
TOTAL
Main Report
1,280
96
22.2.5
Volume 1
Treated Water Transmission
Following the recommendations of the Master Plan, a network of transmission mains were laid
under First Chennai and Second Chennai projects for transporting clear water from the
treatment plants at Kilpauk and Red Hills to the zonal head works. Treated water from
Veeranam was connected to the transmission main network through the Water Distribution
Station at Porur. Transmission main was also laid to convey treated water from
Chembarambakkam water treatment plant to transmission main network.
22.2.6
Storage and Distribution
The distribution network in Chennai city covers a length of 2,582 km divided into 159 Divisions.
Storage capacities are in the order of 322 million litres. Pipe size ranges from 100mm to
1500mm, mostly CI pipe, although PVC mains exist in some specific. 85% of pipes are 200mm
diameter or less. About 50% of the smaller diameter pipe lines are more than 50 years old. Age
and incrustation of pipe lines due to intermittent supply, low pressure and other factors, reduces
capacity to no more than 50% with almost zero residual head. Improvements were made under
the Second Chennai Water Supply Project in 1996 (CMWSSB with World Bank assistance).
Improvements have been completed in 12 Water Distribution Stations and 11 Distribution Zones
out of total 16 zones resulting in equitable distribution with the desired residual head and
substantial reduction of unaccounted for water (UFW).
22.2.7
Level of Water Supply
About 98% of the city is supplied with piped water supply. The remaining 2%, mostly residing in
slum areas and erstwhile private streets are supplied through tankers. Average per capita water
supply is about 105 litres per day. In the years with below normal rainfall the supply rate is
reduced. In 2004, due to monsoon failure, piped water supply was curtailed and tankers used.
Water supply elsewhere in the CUA is far from satisfactory. Details of Water Supply in the
municipalities are presented in Volume 3: Annex 5.
22.3 Inventory of On-going and Planned Projects

In last few years a number of projects have been taken up for execution under TNUDP III or
JNNURM. Table 32 provides the list of the on-going and proposed projects. Full benefits of the
investment in water supply projects can not be achieved unless investments are made for
source augmentation.
22.4 Gap Analysis and Proposed Projects

Analysis of Table 32 indicates that funding available under JNNURM falls far short of need. An
additional investment of approximately Rs. 79,000 million may be necessary. This assessment
includes consideration of: future planning requirement, necessary rehabilitation of the existing
system components towards their optimum utilization, measures for optimization of operation
and maintenance costs, limiting the non revenue water and measures for enhancing the
revenue through introduction of volumetric water charges for house hold supply. In addition,
probable cost for source augmentation, extending the services in all the local bodies has been
considered. Many of the projects funded under JNNURM are not expected to be completed in
time. As such there is a strong possibility that the actual costs on completion will be more than
the sanctioned costs. Without making provisions for such cost escalation the projects may not
be fully operational. It may be noted that sewerage projects in many of the Town Panchayats
have been sanctioned without considerable increase in the water supply rate to allow the
system to function optimally and effectively.
A series of Project Summary Sheets are prepared for undertaking a preliminary screening,
selection and prioritisation of the significant number of planned, proposed and identified "gap"
projects. See Volume 3: Annex 5. Map 10 indicates the location of currently proposed water
supply and sewerage projects.
Main Report
97
Volume 1
Map 10: Proposed Water Supply & Sewerage Projects
Main Report
98
Volume 1
Table 32: Project Summary - Water Supply

Existing/Planned
New Work
Rehab
TBD: To be decided
Location
Project Name
Existing or
Planned
Proposed
"Gap"
New Work
Rehab
Cost (Rs. Million)

Sanctioned
Possible
Funding
Source
W-1
W-2
W-3
W-4
W-5
W-6
W-7
W-8
W-9
W-10
W-11
W-12
W-13
W-14
W-15
Improvements to Water Supply System in Chennai City

Source Augmentation
Desalination plant at Minjur
Desalination plant at Nemmeli
Sump cum Pump House near Poondi Reservoir
Comprehensive Water Supply Development Plan for CUA
Water Metering in Chennai city
Reduction in UFW through Leak Detection and Rectification
Energy Audit Studies
Water Quality Studies and Monitoring
GIS Mapping for Various Water Supply Zones
Replacmt of Old PVC Main and Choked CI Mains by DI Pipes
SCADA Arrangmt and Automation in Water Dist Stns and Zones
Refubrishing of Water Treatment Plants and Pumping Stations
Improvements to Water Tratment plant at KK Nagar
SUB TOTAL
W-16
W-17
W-18
W-19
W-20
W-21
W-22
W-23
W-24
W-25
W-26
W-27
W-28
W-29
W-30
W-31
Municipalities
Ambattur
Avadi
Alandur
Maduravoil
Thiruvottiyur
Ullagaram- Puzhutivakkam
Pallavaram
Manali
Valasaravakkam
Poonamalee
Thiruverkadu
Pammal
Kathivakkam
Tambaram
Madhavaram
Anakaputhur
Main Report
Water Supply Facilities to Ambattur

Water Supply Facilities to Avadi
Water Supply Facilities to Alandur
Water Supply Facilities to Maduravoil
Water Supply Facilities to Thiruvottiyur
Water Supply Facilities to Ullagaram- Puzhutivakkam
Water Supply Facilities to Pallavaram
Water Supply Facilities to Manali
Water Supply Facilities to Valasaravakkam
Water Supply Facilities to Poonamalee
Water Supply Facilities to Thiruverkadu
Water Supply Facilities to Pammal
Water Supply Facilities to Kathivakkam
Water Supply Facilities to Tambaram
Water Supply Facilities to Madhavaram
Water Supply Facilities to Anakaputhur
SUB TOTAL
3,220.00
878.80
8,712.40
91.10
12,902.30
64,042.70
2,670.80
1,038.40
643.90
233.00
851.17
242.40
3,350.00
1,300.00
730.00
280.00
1,020.00
280.00
720.00
644.00
806.00
9,130.00
326.16
6,005.83
99
4,000.00
40,000.00
878.80
9,082.80
91.10
70.00
2,400.00
120.00
120.00
60.00
110.00
4,000.00
1,000.00
2,000.00
110.00
JNNURM
JNNURM
GoI
JNNURM
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
JNNURM
JNNURM
JNNURM
JNNURM
JNNURM
JNNURM
TBD
JNNURM
Location
W-32
W-33
W-34
W-35
W-36
W-37
W-38
W-39
W-40
W-41
W-42
W-43
W-44
W-45
W-46
W-47
W-48
W-49
W-50
Town Panchayats
Chinnasekkadu
Perungudi
Porur
Chitlapakkam
Sembakkam
Madambakkam
Pallikaranai
Peerkankaranai
Puzhal
Nandambakkam
Mangadu
Thirumazhisai
Naravarikuppam
Kundarathur
Perungalathur
Sohinganallur
Thiruneermalai
Meenambakkam
Various
W-51
Village Panchayats
Volume 1
Project Name
Existing or
Planned
Water Supply Facilities to Chinasekkadu

Water Supply Facilities to Perungudi
Water Supply Facilities to Porur
Water Supply Facilities to Chitlapakkam
Water Supply Facilities to Semabakkam
Water Supply Facilities to Madambakkam
Water Supply Facilities to Pallikaranai
Water Supply Facilities to Peerkankarani
Water Supply Facilities to Puzhal
Water Supply Facilities to Nandambakkam
Water Supply Facilities to Mangadu
Water Supply Facilities toThirumazhisai
Water Supply Facilities to Naravarikuppam
Water Supply Facilities to Kundarathur
Water Supply Facilities to Perungalathur
Water Supply Facilities to Sohinganallur
Water Supply Facilities to Thiruneermalai
Water Supply Facilities to Meenambakkam
Water Supply and Sewerage Facilities along IT Corridor
SUB TOTAL
New Work
Rehab
Cost (Rs. Million)

Sanctioned
Possible
417.70
541.28
49.49
239.62
150.00
132.83
231.81
216.18
294.32
78.14
148.46
41.67
96.37
72.93
122.41
114.60
145.86
213.57
127.62
23.44
550.00
3,049.32
191.70
19,641.11
906.39
77,128.41
123.58
Water Supply to Other Areas

TOTAL
Main Report
Proposed
"Gap"
100
Funding
Source
TBD
TBD
JNNURM
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
JNNURM
Volume 1
22.5 Financial Analysis

22.5.1
Income and Expenditure for Water Supply and Sewerage -CMA
The financial analyses are based on the published financial statements of CMWSSB and the
municipalities. In summary, CMWSSB is operating with a small net surplus of 1.3%. The
situation in municipalities is more varied, with most reporting losses.
Income includes:
Water and Sewerage Tax: Revenues are collected by CMWSSB for CoC and
Municipalities under CMWSSB Water Tax and Sewerage Tax Regulations, 1991. The
rates are based on the Annual Letting Value of Properties.
Bulk Water Consumers: In addition to the water and sewerage tax, there is a levy
applicable for a specific class of consumers. All premises having water connections from
the sources maintained and operated by the Board and Private Ground Water sources are
subject to an additional monthly charge as prescribed under the Regulations 1991
whether such connections are metered or not.
Assigned Revenues from GoTN: Revenue grants and assigned revenues to CMWSSB.
Expenditure includes:
Power: includes water treatment plants (WTP) and desalination plants

Chemicals: required in water treatment plants
Operation and Maintenance: All O&M cost at the WTP and desalination plants. In case
of other municipalities, the O&M cost includes the water charges paid/payable to TWAD
and CMWSSB.
Purchase of Desalinated water: The agreement between the Chennai Water
Desalination Limited (a Special Purpose Vehicle, SPV) and CMWSSB specifies a Bulk
Water Purchase Agreement requiring a minimum purchase regardless of consumption.
Drought Expenditure: includes augmenting water supply to affected areas
Water Lorry Hire Charges: covers areas of deficient of piped water supply services.
Payment and Provision to Employees (Staff Salaries.
Office and Administration Expenses: cost of running office, administration support unit.
Interest: cost of borrowing.
22.5.2
Revenue and Expenditure Trends
Both operating income and expenditures show a slight increasing trend with a negligible
net surplus. See Volume 4: Annex 3.
Average share of own revenue is 84.71%, assigned annual revenues is 15%. This is a
good sign, more dependency on internal revenues than on assigned revenues.
The operating profit of CMWSSB shows an increasing trend, however, it is a flat trend as
the operating income trend is just matching the expenditure trend with inadequate
surplus. When increasing interest costs and depreciation are included, the year-end
results are negative for CMWSSB. See Volume 4: Annex 3.
Costs of borrowing are increasing. Although, CMWSSB's interest coverage ratio is
healthy. Additional borrowing to fund own contribution would require careful structuring;
otherwise, a large portion of the internal accruals will have to be set aside for interest
payouts. See Volume 4: Annex 3.
Total loan outstanding of CMWSSB as on 31 Mar 2008 towards Government and financial
institutions are as per Table 33:
Table 33: CMWSSB Borrowing
Nature of Borrowing
Amount (Rs. Million)
Government Loan outstanding
Main Report
7,104.4
Loan from Financial Institutions outstanding
6,275.1
Total loan outstanding
13,379.5
101
Volume 1
Municipalities: Except Alandhur Municipality, the average income in the Water and
Drainage Fund is between Rs. 40-50 million annually. Alandhur's average is between Rs.
55 and 65 million since 2004.
The municipalities are using the major portion of the fund earnings for operation and
maintenance of the water assets.
The operating surplus generated at the present levels of taxes and tariffs is not sufficient
to take up major capital investment projects.
Most of municipalities, for which financials were analysed, reported losses.
22.5.3
Planned JNNURM Investment and Actual - CMA
The 2006 CDP planned water investments of Rs. 63,210 million. To February 2009 MoUD
approved Rs. 10,928 million (17%) of which CMWSSB projects are Rs. 5,464 million. CMWSSB
is also implementing the Desalination plant at Nemmeli with a grant of Rs. 8,712.40 million from
Government of India.
22.5.4
Infrastructure Requirement to 2026
Estimated water infrastructure to 2026 requires Rs. 77,128 million including already sanctioned
JNNURM and Desalination Plant funds.
22.5.5
Requirement of Finance to manage Water Supply Projects to 2026
Table 34 summarizes Water Supply financial requirement for the CMA.

Table 34: Finance Requirements - Water Supply Sector
Rs millions
Projects Identified until 2026 under the 2009 CDP
Less: Desalination Plant at Nemmeli under GoI Finance (on-going)
77,128.41
8,712.40
5,463.95
Additional funds required to finance identified Water Supply projects
62,952.06
22.5.6
CMWSSB Internal Accruals to 2026
Rs. 62,952.06 million is required to finance water supply projects. With an annual net loss before
depreciation as set out below, accruing capital investment will be problematic and additional
sources of finance are required. Analysis up to 20026 shows: (See Volume 4: Annex 3 for
details).
.
Average projected annual operating income is Rs. 10,525.29 million;

The average projected annual operating expenses is Rs. 9,881.05 million;
The average projected annual operating profit is Rs. 644.24 million;
The average projected annual interest cost on loans and borrowings is Rs. 2,671.46
million;
The average projected annual net loss before provisioning for depreciation is Rs. 2,027.23
million;
22.5.7
Investment Options
Internal accruals are insufficient. A number of financing options,presented in Section 17, are
considered to meet the estimated need for Rs 62,952 million to 2026 for Water Supply
infrastructure.
Option 1: Private Sector Participations
All forms of PSP, from simple service and management contracts to increasingly complex
performance-based management contracts, asset leases, concessions and asset divestitures,
involve a partnership between the government or the ULB and the private sector.
Main Report
102
Volume 1
Option 2: Loan Borrowings - Local Agencies

Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL) managing the Tamil
Nadu Urban Development Fund (TNUDF) is a potential source.
Option 3: Loan Borrowings - International Agencies
The World Bank and Asian development Bank are possibilities, although operations still require
improvement in order to service the loans.
Option 4: Grants-in-Aid - Local and International Agencies
JNNURM is one possibility, but still leaves ULBs with the challenge of financing their required
matching funds. ULBs can also request for MP Local Area Development Funds. International
Multi-lateral and bi-lateral agencies are also options.
Option 5: Market Borrowing
A new type of credit instrument has been designed to enable the local bodies to tap the capital
market. "Structured debt obligations" (SDOs) are arrangements through which bonds are issued
on the condition that the borrowing agency pledges or escrows certain buoyant sources of
revenue for debt servicing. This is a mechanism by which the debt repayment obligations are
given utmost priority and kept independent of the overall financial position of the borrowing
agency.
23. Sewerage and Sanitation

23.1 Introduction
Chennai's first sewerage system was designed in 1910 for a projected 1961 population of 0.66
million at a per capita rate of 114 litres per day. Comprehensive improvements to the system
were designed in 1958 for an estimated 1976 population of 2.55 million, and 1991 population of
2.72 million at a sewage flow rate of 110 lpcd and 180 lpcd respectively. Under this design, the
city was divided into 5 sewerage zones, with 5 Sewage Treatment Plants (STP), one each for
each zone.
Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) was formed in 1978, as a
statutory body with responsibility for planning, construction, operation and maintenance of water
supply and sewerage services. Although CMWSSB's mandate is for the entire Chennai
Metropolitan Area (CMA), to date their functions are primarily restricted to the limits of the
Corporation of Chennai. Major physical interventions started taking place from the late 1980s
with funding from external agencies including the World Bank and Japan Bank for International
Cooperation (JBIC). In more recent times, a comprehensive project for sewerage system
improvement under the umbrella Chennai City River Conservation Project (CCRCP) has been
implemented to address the increased sewage flow resulting from water supply augmentation
schemes, and to prevent the overflow of sewage into the city's waterways. The Project was
taken up at a cost of Rs. 7,201.50 million with a Government of India grant of Rs. 49,152.00
million under the National River Conservation Program. It included providing additional sewage
interceptors, refurbishing the existing sewer mains and capacity augmentation of the existing
pumping stations and force mains to cope with the flow in the year 2021. Under the project, 59
km, 46 km gravity mains/ pumping mains and construction of additional treatment units to 4
Sewage Treatment Plant units at Perungudi (54 MLD capacity), Koyambedu (60 MLD capacity),
Nesapakkam (40 MLD capacity) and Kodungaiyur (110 mld capacity) were completed.
23.2 Summary Background and Situation Analysis

23.2.1
Chennai Sewage Collection System
There are about 517,000 sewer connections to serve 98% of Chennai Municipal Corporation
through a network of some 2,600 km of sewer lines and 180 pumping stations. See Volume 3:
Annex 6 for details of Chennai by Zone.
Main Report
103
Volume 1
Additional small neighbourhood systems by TNHB exist and are connected to the nearest
mains. Sewer capacities are limited and during rain become surcharged. Surplus sewage in
excess of pumping station capacity drains into the nearest natural water course causing
extensive pollution: Cooum River, Adyar River, Buckingham Canal, Otteri Nullah, etc.
Completion of CCRP will improve the situation although a large number of connections will
continue discharging waste water to water bodies. CMWSSB has a program to seal these
connections. Refer to the separate PFS addressing Water Ways Management. Measures have
also been initiated to cover the unsewered areas, primarily now in areas served by erstwhile
private streets as well as in some slums.
23.2.2
Sewage Treatment Plants
The City has four sewage treatment plants as detailed in Table 35.
Table 35: Features of Existing Sewage Treatment Plants
Zone
Location
Type
Capacity (mld)
Land Cultivated (acres)
I and II
Kodungaiyur
Activated Sludge Plant
270.00
100.00
III
Koyembedu
94.00
45.00
IV
Nesapakkam
63.00
18.00
Perungudi
99.00
Total
526.00
23.2.3
163.00
Sanitation in Balance of CUA
The majority of the ULBs in the Chennai Urban Agglomeration do not have underground
sewerage systems although a number of projects are under implementation. See Table 36 for
details. In areas where sewerage facilities are not available, houses are provided predominantly
with septic tanks, especially in newer construction areas. In some older areas, pit latrines are
used. Community septic tanks from group housing is common. There are also community toilets
in the local bodies.
Table 36: Existing Sanitation Status - Municipalities
Sl No
1
2
Municipality
Maduravoyal
Avadi
3
4
UllagramPuzhurhivakkam
Thiruverkadu
Ambattur
Thiruvottiyur
7
8
Valasaravakkam
Allandur
9
10
11
12
Pammal
Kathivakkam
Poonamalle
Madhavaram
13
Pallavaram
Main Report
Sanitation Status
No organized sewerage system. Houses mostly septic tanks.
No sewerage system. Most houses connected to septic tanks. Some areas are
connected to community septic tanks.
The most part of the town does not have sewerage system and mostly served by
individual / community septic tanks.
Some parts town sewered and system is under execution under TNUDP III.
Further intervention necessary.
Sewerage system is under execution under TNUDP III. Further intervention will
be required.
There is an organized sewerage system in the town.
An organized sewerage system town with STP. In addition 9 low cost sanitation
units and 7 public toilets.
No organized sewerage system. Houses are mostly connected to septic tanks.
Sewerage system is under execution under TNUDP III. However further
intervention is necessary.
Sewerage system is under execution under TNUDP III. However further
intervention is necessary.
104
Sl No
14
15
16
Municipality
Tambaram
Ankaputhur
Manali
Volume 1
Sanitation Status
No organized sewerage system. In some areas there are institutional sewerage
connected to community septic tanks.
No sewerage system. Most houses connected to septic tanks or pit latrines.
Some use community toilet or open defecation.
Effluent from septic tanks, instead of being disposed of through leach pits/ soakage pits, is
being discharged to open drains ultimately discharging into nearby water bodies with resulting
negative environmental and health conditions. In many urban poor areas open defecation is a
common phenomenon. The SMP states that acceptable sanitation - piped or septic - is required
before Planning Permission will be given. Use of effluent is encouraged for gardening.
23.2.4
Recent Developments:
In March 2005 CMWSSB was designated as the nodal agency for complete execution, and
maintenance of sewerage schemes in Adjacent Urban Areas (AUA) and Distant Urban Areas
(DUA) in the CMA. ULBs will be charged a monthly maintenance fee and, in turn, will charge
users. Detailed project reports have been finalized for most ULBs by CMWSSB. Existing STPs
will be augmented and CMWSSB will construct new common facilities for a group of ULBs as
required. Some of the terminal pumping stations are also expected to serve more than one local
body. The requirement for sewage treatment capacities and augmentation needs for each
Municipality and Town Panchayat are presented in Volume 3: Annex 6.
There is a total sewage treatment requirement of 1,490 MLD based on projected population of
2026 and per capita rate of water supply at the desired level. The existing available capacity of
the sewage treatment plants under CMWSSB system is about 526 MLD. In addition there are a
few small STPs available to serve locally the ULBs. It is estimated that some 900 MLD may be
the additional requirement to serve estimated population of 2026. However, it is not prudent to
create such substantial additional assets and it is suggested that STP capacities for an
intermediate future year, say 2021, should only be considered for being built in the next five
years or so. CMWSSB has already developed a plan to augment the capacities of the existing
STPs while also creating new facilities. This plan is presented below:
Needs analyses consider that sewage from some local bodies will be transported to existing
STP sites. Details in Volume 3: Annex 6. For others a new STP will be constructed and, in
some cases, will serve a group of local bodies. There is also a proposal for developing a 12
MLD STP to serve the expanding IT Corridor. Estimated total shortfall in STP capacity to 2026
may be in the order of 150 MLD. However, it is not expected that 100% house connections will
be achieved. On-going evaluation is required with further review development actions based on
the results of the upcoming 2011 census.
23.3 Inventory of Existing and Planned Projects

In last few years a number of projects have been implemented under TNUDP III or JNNURM.
Table 37 gives the break down of costs by project and local body. Rs. 10,057 million worth of
projects have been sanctioned under JNNURM. Chennai City's share of this is a little above 8%
reflecting the fact that major investments were made in the past. The total share for
Municipalities in this sector is more than 57%. Rs. 3482.12 million is allocated for providing
sewerage system in Town Panchayats.
A series of Project Summary Sheets are prepared for undertaking a preliminary screening,
selection and prioritisation of the significant number of planned, proposed and identified "gap"
projects (identified either by various agencies or by the Consultant Team). See Volume 3:
Annex 6.
Main Report
105
Volume 1
Table 37: Project Summary Sanitation

Existing/Planned
New Work
Rehab
TBD: To be decided
Location
S-1
S-2
S-3
S-4
S-5
S-6
S-7
S-8
S-9
S-10
S-11
S-12
S-13
S-14
S-15
S-16
S-17
S-18
S-19
S-20
S-21
S-22
Project Name
Existing/ Proposed New

Planned "Gap"
Work
Project
Construction of Additional STP at Perungudi

Rehabiltation of Existing Sewers
Rehabiltation of Pumping Stations and Automation
Comprehensive Sewerage Development Plan for CUA
Energy Audit of Puming Mach in Pumping Stations
Construction of Additional STP at Nesapakkam
SUB TOTAL
Municipalities
Ambattur
Avadi
Alandur
Maduravoil
Thiruvottiyur
Ullagaram- Puzhutivakkam
Pallavaram
Manali
Valasaravakkam
Poonamalee
Thiruverkadu
Pammal
Kathivakkam
Tambaram
Madhavaram
Anakaputhur
Main Report
Rehab
Cost (Rs. Million)

Sanct.
Possible
314.80
350.00
200.00
1,000.00
50.00
80.00
615.00
2,295.00
514.80
829.60
Sewerage to Ambattur
Sewerage to Avadi
Sewerage to Maduravoil
Sewerage to Thiruvottiyur
Sewerage to Ullagaram- Puzhutivakkam
Sewerage to Pallavaram
Sewerage to Manali
Sewerage to Poonamalee
Sewerage to Thiruverkadu
Sewerage to Pammal
Sewerage to Kathivakkam
Sewerage to Tambaramr
Sewerage to Madhavaram
Sewerage to Anakaputhur
SUB TOTAL
1,309.10
1,580.54
Funding Lead
Source Agency
JNNURM
TBD
TBD
TBD
TBD
JNNURM
Links and Comments
CMWSSB
CMWSSB
CMWSSB
CMWSSB
CMWSSB
CMWSSB
1700.00 JNNURM CMWSSB Scheme under execution. Further intervention necessary.

1,800.00 JNNURM CMWSSB
-
574.45
280.81
1,609.70
5,354.60
106
630.00 JNNURM
TBD
365.00 JNNURM
417.00 TBD
552.00 TBD
750.00
444.00
570.00
390.00
3,488.00
150.00
360.00
11,616.00
TBD
TBD
TBD
TBD
JNNURM
JNNURM
TBD
CMWSSB
CMWSSB
CMWSSB
CMWSSB Scheme under execution. Further intervention necessary.
CMWSSB
CMWSSB
CMWSSB
CMWSSB
CMWSSB
CMWSSB Intervention necessary because of projected population
CMWSSB Scheme under execution. Further intervention necessary.
CMWSSB
S-23
S-24
S-25
S-26
S-27
S-28
S-29
S-30
S-31
S-32
S-33
S-34
S-35
S-36
S-37
S-38
S-39
S-40
Location
Town Panchayats
Chinnasekkadu
Perungudi
Porur
Chitlapakkam
Sembakkam
Madambakkam
Pallikaranai
Peerkankaranai
Puzhal
Naravarikuppam
Nandambakkam
Mangadu
Thirumazhisai
Kundarathur
Perungalathur
Sohinganallur
Thiruneermalai
Meenambakkam
Project Name
Volume 1
Existing/ Proposed New

Planned "Gap"
Work
Project
Rehab
Sewerage to Cinnasekaddu
Sewerage to Perungudi
Sewerage to Porur
Sewerage to Chitalpakkam
Sewerage to Sembakkam
Sewerage to Madambakkam
Sewerage to Pallikaranai
Sewerage to Peerkankaranai
Sewerage to Puzhal and Naravarikuppam
Cost (Rs. Million)

Sanct.
Possible
100.00
201.92
382.90
283.00
283.00
544.50
586.10
212.90
207.00
Sewerage to Nandambakkam
Sewerage to Mangadu
Sewerage to Thirumazhisai
Sewerage to Kundrathur
Sewerage to Perungalathur
Sewerage to Sohinganallur
Sewerage to Thiruneermalai
Sewerage to Meenambakkam
Construction of Additional STP (30 MLD) at IT Corridor
SUB TOTAL
204.70
476.10
3,482.12
Main Report
Sewerage to Other Areas

TOTAL
JNNURM
JNNURM
JNNURM
JNNURM
JNNURM
JNNURM
JNNURM
JNNURM
JNNURM
CMWSSB
CMWSSB
CMWSSB
CMWSSB
CMWSSB
CMWSSB
CMWSSB
CMWSSB
CMWSSB Intervention necessary because of projected population
120.00
222.00
246.00
264.00
525.00
492.00
270.00
47.00
380.00
6,065.00
TBD
TBD
JNNURM
TBD
JNNURM
TBD
TBD
TBD
TBD
CMWSSB
CMWSSB
CMWSSB
CMWSSB
CMWSSB
CMWSSB
CMWSSB
CMWSSB
CMWSSB
2,088.00
9,666.32 22,064.00
107
Links and Comments
114.00
240.00
450.00
320.00
320.00
600.00
650.00
255.00
550.00
Village Panchayats
S-41
Funding Lead
Source Agency
Volume 1
23.4 Gap Analysis and Proposed Projects

There is a significant gap between identified service needs and available funding. Analysis of
Table 37 suggests that funds allocated to date under JNNURM will be able to narrow the gap
by about 50%. A preliminary assessment shows that to develop the sewerage system in all the
local bodies in CUA for the estimated 2026 population, additional investment to the tune of Rs
21180 million may be necessary. In doing the assessment, future planning requirement,
necessary rehabilitation of the existing system components towards their optimum utilization,
measures for optimization of operation, expansion of services in all the local bodies, and
maintenance costs, have been considered. Many of the projects funded under JNNURM are not
expected to be completed on schedule and no escalation in cost was allowed. As such there is
a strong possibility that the actual costs on completion will be more than the sanctioned costs.
Without making provisions for such cost escalation the projects may not be fully complete.
23.5
Financial Analysis Sewerage and Sanitation

(NOTE: Much of the analysis repeats that for the Water Sector as CMWSSB provides both
without separate accounting. Repeated here to provide a complete Sector document.)
23.5.1
Revenue and Expenditure for Water Supply & Sanitation - CMA
The following financial analyses are based on the published financial statements of CMWSSB
and the municipalities. In summary, CMWSSB is operating with a small net surplus of
approximately 1.3% of revenue over expenditure. The situation in municipalities is more varied
with most reporting losses.
Revenue includes:
Water and Sewerage Tax: Tax revenues are collected by CMWSSB for CoC and
Municipalities for their respective areas as per CMWSSB Water Tax and Sewerage Tax
Regulations, 1991. CoC rates are based on their Annual Value of Properties.
Sale of Water (Bulk Consumers): In addition to the water and sewerage tax, there is a
levy of charges applicable for a specific class of consumers. All premises having water
connections from the sources maintained and operated by the Board and Private Ground
Water sources are subject to a charge whether such connections are metered or not as
prescribed under the Regulations 1991.
Assigned Revenues from GoTN: Revenue grants and assigned revenues to CMWSSB.
Expenditure includes:
Power: includes treatment plants
Chemicals: required in treatment plants
Operation and Maintenance: All O&M cost. In case of other municipalities, the O&M
cost includes the water charges paid/payable to TWAD and CMWSSB.
Drought Expenditure: includes augmenting water supply to affected areas
Water Lorry Hire Charges: covers areas of deficient of piped water supply services.
Payment and Provision to Employees (Staff Salaries)
Office and Administration Expenses cost of running office and administration support
unit.
Interest: includes the recurring portion of the cost of borrowing. The CMWSSB
capitalizes that part of the total debt servicing charges, which relates to projects in
progress.
23.5.2
Revenue and Expenditure Trends
Both operating revenues and expenditures show a slight increasing trend with a negligible
net surplus. See Volume 4: Annex 3.
The share of own revenue on an average is about 84.71%, assigned annual revenues are
generally up to 15%. This is a good sign to show more dependency on internal
revenues than on assigned revenues.
The operating profit of CMWSSB shows an increasing trend, however, it is a flat trend as
the operating income trend is just matching the expenditure trend with inadequate
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108
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surplus. When increasing interest costs and depreciation are included, the year-end
results are negative for CMWSSB. See Volume 4: Annex 3.
Costs of borrowing are increasing. Although CMWSSB's interest coverage ratio is healthy,
further control is needed to avoid future problems. Additional borrowing to fund own
contribution would require careful structuring; otherwise, a large portion of the internal
accruals will have to be set aside for interest payouts. See Volume 4: Annex 3.
Total loan outstanding of CMWSSB as on 31 Mar 2008 towards Government and financial
institutions are as per Table 38.
Table 38: CMWSSB Borrowing
Nature of Borrowing
Amount (in Rs. Million)
Government Loan outstanding
Rs. 7,104.4
Loan from Financial Institutions outstanding
Rs. 6,275.1
Total loan outstanding
Rs. 13,379.5
Municipalities: Except Alandhur Municipality, the average income in the Water and
Drainage Fund is between Rs. 40-50 million annually. Alandhur's average is between Rs.
55 and 65 million since 2004.
The municipalities are using the major portion of the fund earnings for operation and
maintenance of the water assets.
The operating surplus generated at the present levels of taxes and tariffs is not sufficient
to take up major capital investment projects.
Most of municipalities, for which financials were analysed, reported losses.
23.5.3
Planned JNNURM Investment and Actual Implementation - Sanitation - CMA
The 2006 CDP planned infrastructure requirement for sewerage and sanitation was in the order
of Rs. 22,990.0 million. MoUD approved projects worth Rs. 9,700.39 million to February 2009,
or 42.20%. The exposure of the CMWSSB, and other agencies of GoTN, to implement these
approved projects is Rs. 4,850.20 million, and the remaining exposure is with the GoI (out of
JNNURM) and GoTN.
In addition to the sanctioned sewerage and sanitation projects under JNNURM, CMWSSB is
also implementing various water supply and sewerage projects.
23.5.4
Financing Sanitation Projects to 2026
Table 39 summarizes the total CMA financial requirement for the Sewerage and Sanitation to
2026.
Table 39: Finance Requirement - Sewerage and Sanitation to 2026
Rs Millions
Projects Identified until 2026 under the 2009 CDP
22,064.00
4,850.20
Amount required to finance identified projects
17,213.80
23.5.5
CMWSSB Accruals for Projects to 2026
Please see Section 22.5.6 (Also see Section 17)

23.5.6
Financing Options
Rs. 17,213.80 million are required to finance the identified sewerage and sanitation projects in
addition to Rs. 62,952.06 million required to finance water supply projects. Accruals are
insufficient to finance further projects and therefore additional options must be considered.
Please See Section 22.5.7 (Also see Section 17)
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109
Volume 1
24. Solid Waste Management

(Note: A separately prepared Pre-Feasibility Study (PFS) address this sector in detail. The following provides a summary in
line with ensuring the CDP is a comprehensive development document and recognises that linkages exist between all
sectors. Information presented here is from the PFS Final Report)
24.1 Study Area

The study area for Solid Waste Management under the Pre-Feasibility Study (PFS) support for
Waterways Rehabilitation and Solid Waste Management focuses on three different sub-regions within
the CMA covering Chennai peri-urban areas that are administratively part of Kanchipurum and
Thirruvallur districts. The sub-regions are (1) City of Chennai, (2) the Municipalities and Town
Panchayats, and (3) the rural area (Panchayat Unions/Village Panchayats) with a number of rural
settlements.
24.2 Overview and Analysis of Existing Situation

24.2.1
Corporation of Chennai (COC)
Generation of Waste
According to the estimate made in the Second Master Plan for CMA, and 2006 CDPi, daily
waste generation in COC is in the order of 3000 3200 tonnes. In addition, the COC handle on
an average about 500 tonnes of debris (construction & demolition waste) per day.
Major sources of waste generation are domestic, markets (mainly fruit, vegetable and fish
markets), other commercial establishments, restaurants/ hotels/ schools/ others and hospitals
and clinics. No recent study has been conducted to determine the quantity of waste generated
from various sources. However, based on the study "Municipal Solid Waste Management Study
for Madras Metropolitan Area" carried out with the World Bank assistance during the year 1996,
percentage of waste generated from various sources in the COC area is shown in Figure 12.
Figure 12: Sources of Waste
Sources of Waste Generation
11%
4%
3%
14%
68%
Domestic
Commercial
Restaurants/Hotels/Schools/Others
Markets
Hospitals and Clinics
Collection, Storage, Transfer and Transportation of Waste

For day-to-day operational purposes, the city is divided into ten SWM zones and each zone is
further sub-divided into 15 divisions covering all the 155 corporation wards. It is reported that
door-to-door primary collection of waste exists in about 95% of the COC area. However, no
segregation of solid waste at source is in practice except informal segregation by the unorganized rag pickers at the secondary storage points and at the disposal sites. Corporation of
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Chennai has engaged a private contractor for collection and transportation of solid waste from
four SWM zones namely, III, VI, and VIII & X covering Pulianthope, Ice House, Kodambakkam
and Adyar areas. The primary responsibilities of the private contractor are to collect wastes from
door-to-door, sweeping of streets and transporting waste to the designated disposal site(s). In
the remaining zones collection and transportation of waste is carried out by the COC staff. In
addition, a number of NGOs (e.g. EXNORA) and CBOs are assisting communities to collect
solid waste through community based arrangement in certain areas of the city.
In order to minimize the hauling distance for transporting waste to the designated solid waste
disposal sites, COC is developing eight solid waste Transfer Stations (TS) at different locations
of the city. Out of 8 TS, four has already been constructed, 3 are under construction and the
remaining one has been tendered for construction.
Disposal of Waste
Solid waste generated in the COC is mainly disposed to the existing two designated disposal
sites located at Kodungaiyur, serving the northern part of the city and Perungudi, serving the
southern part of the city. Approximate areas of these two sites are 182 hectares and 142
hectares respectively. The sites are located at a distance of about 25 km and 15 km
respectively from the city centre. Open dumping of waste in these two sites are in practice,
which is not environmentally acceptable. The sites are operational for over 20 years. In addition
to these two designated sites, solid waste is also found to be disposed haphazardly into the
open area, low lands, waterways, drains and in the side of roads.
24.2.2
Other Urban Local Bodies (ULBs)
Generation of Waste
Major source of generation of solid waste in the ULBs, other than the COC within the CMA are
domestic, markets and commercial establishments, hotels/restaurants and institutions.
According to the estimates of the municipalities and town panchayats, average per capita waste
generation varies from 100 g/day to 692 g/day, including commercial and industrial.
Collection, Storage, Transfer and Transportation of Waste
Door-to-door primary collection of solid waste exists in some of the ULBs. Usually, pushcarts
and tri-cycles are used for door-to-door collection. Normally, the waste collected from primary
collection is transferred to the secondary collection point. The waste is then transported to the
disposal site. Although door-to-door collection system exists in some ULBs, dumping the waste
onto the streets, drains and open spaces within the locality, creating unhealthy conditions is not
uncommon. Also, the waste thrown into the open drains leads to its choking causing the
overflow of the wastewater on the streets and creating mosquito menace in the adjoining
localities. In few ULBs, private agencies and CBOs are partially or totally involved in collection
and transportation. The present collection and transportation system involves multiple manual
handling.
Disposal of Waste
Scientific disposal of solid waste is absent in all the ULBs. Though some efforts have been
made for local composing, these have not been successful because of lack of proper waste
segregation at source. Solid waste is mainly dumped into open lands, water bodies etc. Some
of the ULBs have designated solid waste dumpsite whereas others do not have such facilities.
At times the disposed waste is burnt in the open causing environmental pollution.
24.3 Major Initiative of the Authorities

In order to improve the existing SWM system, the COC, CMDA and the ULBs have taken a number of
initiatives from time to time. Some of the plans have already been implemented whereas some are
ongoing. Details of these are available in the PFS Report.
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Volume 1
24.4 Identification and Analysis of the Gaps

According to the Municipal Solid Waste (Management and Handling) Rules, 2000, every civic authority
is responsible for implementation of provisions under these Rules. The Rules outline the guidelines
and principles for collection, segregation, storage, transportation, processing and disposal of waste.
The Rules also specify the criteria for selection of landfill site and monitoring activities to be carried out
before and after commissioning of the landfill. Analysis of the existing situation reveals that both the
COC and other ULBs have failed to comply with the above rules in totality, in all aspects of SWM i.e.
Collection, Storage, Transportation, Processing, Disposal of MSW of the city and Institutional Reform.
Only partial compliance of the rules is observed in the CMA.
The following are the areas of major service deficiencies:
Solid waste quantification and characterization

Segregation of waste at source
Primary Collection of waste
Secondary storage facility
Community and private participation
Solid waste transportation system
Safe disposal of waste
Health and Hygiene of Sanitary Workers
Public awareness
Pollution of waterways
24.5 Solid Waste Management Strategy and Options

24.5.1
Differentiation of SWM Strategies
Not all possible SWM strategies will apply to the different units in CMA considering the cost and
management requirements. While some strategies can only be applied at COC level, other
strategies may be suitable for small towns and rural areas. The following matrix, Table 40,
shows differentiation of the various SWM strategies to be applied at the different levels:
Village Panchayats
Town Panchayats
SWM Strategy
Municipalities
CMA
Chennai City (COC)
Table 40: Matrix of Differentiated SWM Strategies for Domestic Waste
Segregation at the source

Organic and non-organic fractions for processing
Glass bottles for recycling
Paper & Cardboard for recycling
Metals for recycling
Plastics (mainly water & soft drink bottles) for recycling
Textiles & Leather for recuperation
Building & demolition debris for recuperation
Domestic hazardous waste (medicines, chemicals, pile batteries, etc.)
Collection
Door-to-door collection (individual bins) with e.g. 3-wheeler vans
Curb side collection (compactor bins) with compression trucks
Main Report
112
Town Panchayats
Municipalities
CMA
SWM Strategy
Collective building, street or ward containers
Duo-curb side collection of wet and dry fraction**
Common waste yards with differentiated disposal containers
Glass, Paper, and Textiles & Leather containers at strategic points

Vehicle movement monitoring (GPS system)
Central composting of organic fraction (assumed segregate collection)
Central anaerobic digestion (methanisation) with biogas recovery
Central production of Refuse Derived Fuel (RDF)
Crushing and classifying of debris for reuse as building material
Village Panchayats
Volume 1
Chennai City (COC)
Transfer
Local transfer station*
Processing
Centralised segregation at disposal site
Individual composting (in home-made or pre-fab bins)
Disposal
Incineration
Sanitary Landfills
X
X
* From local collection vehicles up to 10 ton into compressed transportation trucks up to 40 ton
** Bin with internal separator to be emptied with a special compression truck with separator
24.5.2
Integrated Clustering Approach for SWM
In order to mitigate the existing gaps in the SWM system, an integrated clustering approach has
been adopted in the design of the SWM for the CMA. The main objective of such clustering is to
have a common disposal facility of the MSW generated within a cluster at reasonable distances
from the urban centres.
One of the most critical deficiencies in the existing SWM system in the CMA is lack of safe
disposal facilities of the MSW generated in the ULBs. In almost all the ULBs within the CMA,
MSW is either dumped or burned in the open. The continuous increase of population has
resulted in a significant increase of MSW generation. It is estimated that MSW generation will
increase from the present (2009) 4536 TPD to 7105 TPD by 2026. Availability of adequate and
suitable lands separately for individual ULB for processing and safe disposal of MSW in long
term perspective will be a big problem. Choice of technology for waste processing and safe
disposal of MSW suitable under Indian conditions and its management is another problem that
is being faced by the ULBs. An integrated cluster approach for processing and safe disposal of
MSW has therefore, been suggested for the CMA. The cluster approach, if properly designed,
reduces the number and area of MSW disposal sites, reduces operation and maintenance cost
at disposal sites as also provides better prospect for process like energy recovery.
Using the acceptable criteria like type, geographical location and size of the units as well as
SWM generation and its proximity, the CMA has been divided into following clusters, showing
break up of urban and rural clusters separately. Altogether 8 clusters have been suggested, 3 in
urban areas (Table 41A) and 5 in rural areas (Table 41B).
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Table 41A: Details of Urban Clusters

Cluster
Corporation/ Municipality
COC (Zone-I to V) and

Kathivakkam Thiruvottyur,
Madhavaram, Manali
municipalities
Ambattur, Avadi, Poonamalle,
Thiruverkadu, Maduravoyal,
Valasarawakkam
municipalities
COC (Zone-VI to X)and
Alandur, UllagaramPuzhithivakkam,
Anakaputhur, Pammal,
Pallavaram, Tambaram
municipalities
II
III
Town Panchayat
Area
2
(Km )
Present
Population
(000)
Minjur, Chinnasekkadu, Puzhal,

Naravarikuppam
175.79
3,066.72
Thirunindravur, Porur,
Thirumazhisa, Mangadu
178.11
1,198.74
Nandambakkam, Meenambakkam,
Kundrathur, Thiruneermalai,,
Perungalathur, Peerkankaranai,
Chitlapakkam, Sembakkam,
Meenambakkam, Perungudi,
Pallikkaranai, Sholinganallur
244.51
3,366.02
598.41
7631.48
Total
.
Table 41B: Details of Rural Clusters
2
Cluster
Village Union
Area (Km )
Present Population (000)
IV
Minjur, Sholavaram, Puzhal
218.47
210.70
Villivakkam, Tiruvallur
95.92
190.42
VI
Poonamalle, Sriperumbudur
95.60
86.83
VII
Kundrathur
80.36
130.28
VIII
St. Thomas Mount, Kattankulathur
126.65
330.05
Total
617.00
948.28
24.6 Summary of Proposed Projects

A number of sub projects have been identified and preliminarily cost estimates done which are listed in
Table 42A and Table 42B for urban and rural areas respectively.
Table 42A: Sub Projects and Preliminary Cost Estimate for Urban Clusters
Sub Project/
Component ID
SWM-CI
Name of Sub Project and Their Components
Improvement of Integrated Solid Waste Management System in Cluster

I
Cost (Million
INR)
2343.78
Project Components
SWM-CI-1
Implementation of Reclamation and Restoration of the existing solid waste

dumping sites at Kodungaiyur leading to safe closure
734.00
SWM-CI-2
Construction of 8 Transfer Stations including computerized weighing system

except CoC
9.60
SWM-CI-3
Modernization of record keeping and communication facilities
4.00
SWM-CI-4
Construction of Vehicle Depot with Workshop Facility
5.00
SWM-CI-5
Procurement of collection and transportation equipments/vehicles
606.18
SWM-CI-6
Development of 1000 TPD Capacity Compost Plant including infrastructure

facilities (After finalization of site)
450.00
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114
Sub Project/
Component ID
Volume 1
Cost (Million
INR)
SWM-CI-7
Development of Sanitary Landfill Site including infrastructure facilities (After

finalization of site)
500.00
SWM-CI-8
Public Awareness Programs
35.00
SWM-CII
Improvement of Integrated Solid Waste Management System in Cluster II
864.38
Project Components
SWM-CII-1
13.20
SWM-CII-2
5.00
SWM-CII-3
5.00
SWM-CII-4
311.18
SWM-CII-5

facilities(After finalization of site)
180.00
SWM-CII-6
Development of Sanitary Landfill Site including infrastructure facilities(After

315.00
SWM-CII-7
35.00
SWM-CIII
Improvement of Integrated Solid Waste Management System in Cluster III
2,550.58
SWM-CIII-1
Implementation of Reclamation and Restoration of the existing solid waste

dumping sites at Perungudi leading to safe closure
587.00
SWM-CIII-2
20.40
SWM-CIII-3
9.00
SWM-CIII-4
5.00
SWM-CIII-5
749.18
SWM-CIII-6

540.00
SWM-CIII-7
Development of Sanitary Landfill Site including infrastructure facilities(After

600.00
SWM-CIII-8
40.00
Table 42B: Sub Projects and Preliminary Cost Estimate for Urban Clusters
Sub Project/
Component ID
SWM-CIV
Cost (Million INR)
Improvement of Integrated Solid Waste Management System in

Cluster - IV
INR
USD*
160.40
3.21
Project Components
SWM-CIV-1
Construction of 3 Transfer Stations including computerized weighing

system
3.60
0.07
SWM-CIV-2
76.80
1.54
SWM-CIV-3
Development of 50 TPD Capacity Compost Plant

infrastructure facilities (After finalization of site)
25.00
0.50
SWM-CIV-4
Development of Sanitary Landfill Site including infrastructure facilities

(After finalization of site)
25.00
0.50
SWM-CIV-5
30.00
0.60
SWM-CV

Cluster V
154.85
3.10
Project Components
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115
including
Sub Project/
Component ID
Volume 1
Cost (Million INR)
SWM-CV-1

system
2.40
0.05
SWM-CV-2
80.45
1.61
SWM-CV-3

infrastructure facilities(After finalization of site)
27.00
0.54
SWM-CV-4
Development of Sanitary Landfill

25.00
0.50
SWM-CV-5
20.00
0.40
SWM-CVI

Cluster - VI
115.49
2.31
SWM-CVI-1

system
2.40
0.05
SWM-CVI-2
65.09
1.30
SWM-CVI-3

13.00
0.26
SWM-CVI-4

15.00
0.30
SWM-CVI-5
20.00
0.40
SWM-CVII

Cluster - VII
150.41
3.01
SWM-CVII-1

system
1.20
0.02
SWM-CVII-2
79.21
1.58
SWM-CVII-3

25.00
0.50
SWM-CVII-4

25.00
0.50
SWM-CVII-5
20.00
0.40
SWM-CVIII

Cluster - VIII
212.38
4.25
SWM-CVIII-1

system
2.40
0.05
SWM-CVIII-2
94.98
1.90
SWM-CVIII-3

50.00
1.00
SWM-CVIII-4

40.00
0.80
SWM-CVIII-5
25.00
0.50
Site including
Site including
Site including
Site including
including
infrastructure
including
infrastructure
including
infrastructure
including
infrastructure
24.7 Solid Waste Management The PSP Module

The responsibility to provide solid waste management services within Chennai Metropolitan Area lies
with the Corporation of Chennai (for Chennai City), and respective municipalities (for areas under their
jurisdiction). Out of the ten zones, CoC manages six zones with its own staff, and a private contractor
manages the balance four zones. Hence, the SWM services within the CoC area is partly privatized
under a PSP model.
Chennai is one of the pioneers in initiating PSP models in municipal activities, and particularly for
SWM services on a large scale. CoC in the year 2000 awarded a seven-year contract to a private
operator CES-ONYX through a transparent competitive bidding process for primary collection, street
sweeping, secondary storage at a transfer station and transportation of waste to the disposal site. As a
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result, it withdrew its staff from three zones (VI, VIII, and X) out of the ten zones. Onyx engaged its
own work force, tools, equipment, and fleet of vehicles and was paid on a fixed Rs per tonne basis
with an annual increase of 5%. The contract was entered at Rs. 760 per metric tonne (MT) of waste
dumped (safe disposal) at the landfill site. Segregation of recyclable waste at source in terms of
Municipal Solid Waste Rules 2000 was not a part of the contract. The contract was terminated in
August 2007 when the effective rate was Rs. 1300 per MT.
Recently, CoC entered into a fresh seven year contract with a Columbian multinational company,
Fanalca SA at the rate of Rs. 642 per MT with 5 per cent annual escalation. It includes an additional
zone III and the door-to-door collection. Thus, the new PSP arrangement is 50% lower that the ONYX
and include additional services.,
In order to comply with the MSW Rules 2000, and to overcome the various financial constraints, many
ULBs in India, including Chennai have opted to outsourcing of the SWM services. There are two types
of PSP service module in SWM services, generally:
Activity outsourcing: includes outsourcing either any of the process in the service chain or
all processes; process includes door-to-door garbage collection, sweeping of roads,
carrying and transportation to secondary collection points and/or to the landfill site, and
disposal of the MSW;
Area based outsourcing: a particular area i.e. limited to a part of the city or zones or wards
are put up for outsourcing. Under this module, usually disposal of the MSW does not form
part of the area-based contract. In such cases, disposal can come under a separate PSP
contract;
From the financial resource allocation point of view, possible PSP models are:
Supported by external funding;

Fully funded by ULBs;
Funded by user charges;
Funded through capital investment by service provider or ULB along with a cost-sharing
arrangement between the ULB and the community; and
Funded through capital investment by ULB and cost sharing by ULB and community for
SWM
CoC follows the Fully funded by ULBs PSP model for the SWM services. Under this, the private
contractor assumes almost negligible commercial risk as CoC pays the operator for the work done like
in any other civil contract. The waste producer, household and commercial, is not required to pay any
user charges. Thus, any extra cost due to increased level and quality of services is borne by the CoC.
24.8 Requirement of Finance to manage projects until 2026

The estimated requirement for investment in the SWM sector in CMA is Rs. 8,049.92 million up to the
period of 2026 i.e. during a period of 18 years starting from 2008-09. Table 43 summarizes the
financial requirement for Solid waste Management sector.
Table 43: Requirement of Finance- Solid Waste Management Sector
(Figures in Rs. million)
Projects Identified until 2026 under the CDP Review
9,547.57
1,497.65
Amount required to finance identified projects under Solid Waste Management
8,049.92
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24.8.1
Volume 1
Investment Options
In addition to options outlined in the earlier sections, described below are specific options to
fund investment in the improved solid waste management.
Option 1
Internal accruals of CoC and other municipalities is the best viable option to finance any activity.
To improve revenue implementing reforms are must. A separate fee for management of solid
waste should be introduced. The options are: a surcharge on property tax; a surchange on
water and sewerage bill to be collected by Metro water and passed on to CoC/municipalities; a
fixed monthly user fee or a fixed fee based on number of residents or a combination of both, to
be collected quarterly. Commercial establishment, markets, hotels, restaurants, cinema halls etc
should be specifically targeted with a fee based on the estimated waste generated and
disposed. As collection by local body staff generally does not produce the desired results, the
collection should be privatised with sharing of revenue upto 15%. Such collection should be
maintained in an escrow account for repayment of investments and counterpart funding
requirement.
Option 2
The future of urban development finance rests on the willingness of private developers and
governments to recognize their joint dependencies. The benefits of well-conceived and wellexecuted development are good enough to be shared by both parties under PSP arrangements.
Such arrangements are already in existence in the SWM sector, and can be tried out in a
different model rewarding to both partners. However, ULBs must not confuse PSP with
outsourcing of some typical civic activities and responsibilities.
25. Energy
The Energy Sector is not directly addressed in this CDP. However, it is recognized as a priority and
critical sector for Chennai's on-going development and thus is referenced here to highlight the need to
integrate CDP proposals with separate work being undertaken in the Energy Sector. Chennai currently
suffers from significant sustainable supply and distribution problems. The Sector is recognized here in
a number of other sectors:
Macro-Level Growth Strategy encourages consolidated and managed growth of physical

development within the CMA allowing for more physically economically-viable provision of
infrastructure;
Traffic and Transportation Optimisation contributes to more efficient operation of transportation

modes reducing energy requirements;
Social and economic development resulting from CDP investments, particularly amongst the
lower income groups, will create a growing demand for energy (electricity and fuel) for which
Chennai, Tamil Nadu and the nation must cater;
Environmental management of Chennai requires priority investments in cleaner energy use

including shifts to greater CNP use for vehicles, a move in which Chennai is considerably
behind other Indian metropolitan areas.
26. Communications
The Communications Sector is not directly addressed in this CDP. However, it is recognized as critical
for Chennai's on-going development and thus is referenced here to highlight the need to integrate
CDP proposals with separate work being undertaken in the Communications Sector. As Chennai
hopes to gain further economic prominence in the IT sector, advanced, state-of-the-art and widespread efficient and cost-effective communications infrastructure becomes essential.
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27. Shelter
27.1 Introduction
Somewhere in the order of 40% of Chennai's population6 is without access to appropriate
shelter if the total number of all slum dwellers, pavement dwellers and other low-income
populations is considered. Census statistics consider only government defined slums and,
consequently, fail to reflect the severity of the actual on-the-ground situation. Access to safe,
healthy, affordable and sustainable shelter is considered a basic right for all.
Shelter is provided by both the formal and informal sectors; the former addressing primarily the
middle and higher income, while the lower-income generally rely on the informal. This section of
the Revised CDP addresses formal sector shelter, while Section 28 focuses on the informal.
27.2 Governments Policy / initiatives

The GoI's National Housing Policy states government's role should be as facilitator not provider.
This means concentrating on planning, land management policies, primary infrastructure,
housing finance and appropriate standards in support of private sector development. This is an
internationally recognized approach with the vast majority of government efforts everywhere to
directly develop housing units proving unsustainable. Tamil Nadu is one of the few remaining
states continuing to attempt direct construction through the Tamil Nadu Housing Board and the
Tamil Nadu Slum Clearance Board (TNSCB).
TNSCB, in particular, remains focused on building housing units, failing to recognize that
sustainable shelter is more about socio-economic development and building communities than
constructing 4 walls and a roof. The Tamil Nadu Housing Board (TNHB) is changing its role to
move out of developing shelter for the middle and high income, an activity that government
should not be involved in. TNHB is being reactivated to cater to the needs of low and middleincome, but still with the mandate to actually construct. Plans for 2008-9 include building 22,000
houses at an approximate cost of Rs. 20,000 million and develop integrated town ships in the
Thiruvallur, Kancheepuram, Coimbatore and Madurai.
27.3 Agencies Involved in Housing Development

The vast majority (90-95%) of housing is provided by the private sector - formal and informal.
The public sector plays a very small, but prominent role, particularly with respect to assisting
lower-income groups. The two main public sector agencies involved in shelter housing are:
Tamil Nadu Housing Board (TNHB) and Tamil Nadu Slum Clearance Board (TNSCB). Other
agencies with involvement in shelter include Co-operative Societies, State Police Housing
Cooperation, Postal & Telegraphs, Railways, CPWD and the Port Trust.
Tamil Nadu Housing Board (TNHB) is mandated to address the shelter needs of all income
groups, but has focused mainly on projects for the middle and higher income. TNSCB focuses
on implementing slum upgrading, clearance and relocation projects as discussed in Section 28.
27.4 TNHBs Housing Schemes

TNHB has developed 13 large scale housing projects and Neighbourhood schemes within the
City and its suburbs under the MUDP I & II and TNUDP totalling 21,441 units on 337 acres of
land. See Volume 3: Annex 7 for details. These large-scale neighbourhood developments have
acted as catalysts for further private developments in the project areas.
See Map 11 shows existing, on-going and proposed housing development projects by TNHB.
Consultant estimate
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Map 11: TNHB Housing Projects and Neighbourhood Schemes
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TNHB has a state-wide social housing scheme contributing 350,027 dwelling units to date in 20
projects. See Volume 3: Annex 7 for details. The majority of units have been for the highincome.
27.5 Joint Venture / Public Private Partnership Model

The Tamil Nadu Housing Board Act, 1961 was amended in 2007-08 to facilitate Joint Venture /
Public Private Partnerships. TNHB will act as facilitator and provide land while the private
developer provides the capital and managerial efficiency. Twenty-four such projects on 746
acres are proposed for 2008-09. See Volume 3: Annex 7
Under this model, TNHB will mainly act as a facilitator for land and site development and
providing opportunities for the construction of housing units to private agencies by private-public
sector participation.
27.6 Private Sector

The private sector is by far the majority provider of high and middle-income housing at all
scales. Some larger projects are discussed below.
Mahindra World City is a 1,307 acre industrial-cum-residential park located in the outskirts of
Chennai with 325 acres intended for housing, business support and social amenities.
Employment here could reach 50,000 direct and 50,000 indirect jobs by 2012.
Luxury residential apartment projects are planned for Chennais IT corridor. Of the 40,000-odd
residential apartments that are expected to come up in the outlying areas of the city over the
next few years, 50% have been planned along the IT highway corridor.
27.7 Suggestions / Recommendations

There is a need to evolve a holistic and comprehensive approach to affordable housing.
Government should move away from direct housing provision and concentrate on creating an
enabling environment including policies governing land delivery, infrastructure, land use,
financing, cost recovery, and private sector incentives. The role of the private sector in housing
should be enhanced by exploring joint partnerships with housing agencies. Refer also to
Section 28, Basic Services for Urban Poor.
Some of the recommended interventions to improve the housing market are:
Providing assembled lands with infrastructure by public agencies for facilitating self-help
housing
Providing serviced sites for the poor income groups and loans for developing structures
on their own.
Providing tax incentives and grants to owners of old houses under-utilised properties for
upgrading their structures.
In slum upgradation / renewal, role of TNHB and TNSCB and other public agencies
should be more of providing serviced plots and resource mobilisation. Self-help and
NGOs involvement should be encouraged for building structures or units. (see section on
basic services for urban poor)
Self-help housing stimulates local economies and fits into the National Housing Policy where
public housing agencies act as the facilitators of housing activity, while the people and private
sector contribute to the construction activity.
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28. Basic Services for Urban Poor

28.1 Introduction
Basic Services for Urban Poor is a bureaucratic designation referring primarily to slum
improvement work by the Tamil Nadu Slum Clearance Board (TNSCB).
Tamil Nadu is among the most urbanised states in the country. The concentration of economic
activities in urban areas leads to the migration of the work force from rural to urban areas in
search of employment opportunities. Increasing population pressure on land and increasing
cost of housing has made proper housing inaccessible to the poorer segments of the
population. The problem of affordable housing leads to overcrowding and development of substandard human settlements such as slums and squatter settlements.
28.2 Urban Poverty

Tamil Nadu has made significant progress in terms of poverty reduction over the last few
decades. In 1973-74 the poverty level was 54.94% declining to 43.39%7 in 1987-88 and further
to 21.12% in 1999-2000.8 The trends in poverty levels in Tamil Nadu and India are given in
Volume 3: Annex 8.
In Chennai City, the BPL population has officially come down from 31.6% in 1993-94 to 9.6% in
1999-2000, although this is difficult to discern on the ground. The BPL population in CMA
municipalities is given in Volume 3: Annex 8.
28.3 Growth of Slums and Slum Population in CMA

Institutionally, slums are divided into two main categories by government; those on government
land and those on private land. Government programs address only those on government land
and are the only ones for which there is reasonably complete data. This ignores the equally dire
needs of those residing in slums on private land. Both are addressed here. Other bureaucratic
terms used in reference to slums include:
Objectionable: on lands deemed unsafe, unhealthy or in the way of public-good

development;
Unobjectionable: located in areas other than those listed above;
Developed: slums in which some form of government initiative has previously taken
place regardless of what current conditions are;
Undeveloped: slums in which formal government programs have not occurred.
28.3.1
Government Land
There are 1,431 slums on government land housing a population of 0.82 million constituting
18.9% of the total urban population. TNSCB estimated that about 0.11 million families live in
undeveloped slums (see Volume 3: Annex 8), out of which 75,498 families are living in
objectionable slums. About 34,752 families are living in unobjectionable areas and about 6,150
families live in slum like conditions in the encroached parts of the tenement areas which have
been reserved for parks, public purposes sites etc. The growth of slums in Chennai City is
presented in Table 44.
Table 44: Growth of Slums in Chennai City
Year
No. of slums
No. of the households
Slum Population
1956
306
57,436
287,180
1961
548
97,851
412,168
1971
1202
163,802
737,531
The decline in poverty levels between 1993-94 and 19992000 needs to be interpreted with some caution because of the
change in recall methodology adopted by the NSSO.
8
Economic Appraisal 2003-04 & 2004-05 (GoTN)
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Year
Volume 1
No. of slums
No. of the households
Slum Population
1986
996*
127,181
650,859
2001
1,431 (incl.CMA)
178,000
820,000
Note: *Excluding the slums in 10 towns as per 1986 survey, and also improved/cleared ones.
Source: SMP
Many slums are situated in vulnerable locations such as river margins, water logged areas, sea
shores and road margins, and are categorized as Objectionable slums. Details on the locations
of objectionable slums are given in Table 45 and also shown in Figure 13.
Table 45: Slums in Objectionable Locations in Chennai City, 2000
S.no.
Objectionable Locations
Number of Families
River Margin (Cooum & Adyar rivers and Buckingham canal)
30,922
Feeder Canals (Mambalam Nandanam canal, Otteri Nullah,

Captain Cottol canal)
Road Margin
22,769
Sea Shore
16,519
TOTAL
5288
75,498
Source: SMP
Figure 13: Objectionable Slum Population Distribution - Chennai

Distribution of Slum Population on
Objectionable Locations
Sea Shore
22%
River Margins
41%
Road Margins
30%
Feeder Canals
7%
Details on the ownership of lands occupied by slums are given in Volume 3: Annex 8. The
slums located on objectionable and unobjectionable lands in CoC, municipalities and town
panchayats are given in Table 46 below:
Table 46: Objectionable and Unobjectionable Slums in CMA
Local Bodies
Objectionable Slums
Unobjectionable Slums
Total*
No
Pop
No
Pop
No
Pop
CoC
122
191,192
120
138,632
242
329,824
Municipalities
62
55,450
73
46,185
135
101,635
Town Panchayat
28
19,790
39
23,400
67
43190
Total CMA
212
266,432
232
208,217
444
474,649
Source: Derived from TNSCB report on pre-feasibility study for identification of environmental infrastructure
requirement in slums, 2006.
* It does not include slums located on private lands
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Further details are given in Volume 3: Annex 8.

28.3.2
Private Land
Historic data (1971 and 1986) indicate that approximately 30% of all slum dwellers reside on
private land. In 1986 there were an estimated 600 private land slums, which can be reasonably
extrapolated to 700 in 2009 representing a population of perhaps 600,000 persons, or 150,000
families. This population is currently ignored by government programs, but potential represents
another investment requirement of another Rs 45,000 million assuming new units for all at
TNSCB's current rate.
28.4 Tamil Nadu Policy on Slums

The Government of Tamil Nadu has three main strategies to deal with the problems of slum
dwellers in urban areas. There are:
1.
In-Situ Slum Development: Wherever in-situ development is feasible, such slums shall
be identified and taken up for in-situ improvement for the provision of basic facilities to
make the areas habitable.
2.
Tenement Schemes: The slums located in congested unhygienic areas of the urban
areas wherein equitable distribution of space is not feasible shall be cleared and
tenement schemes put up.
3.
Rehabilitation and Resettlement: Wherever neither tenement scheme nor in-situ

development is feasible, rehabilitation & resettlement in tenements in the nearby
locations, is followed.
28.5 Objectives of TNSCB

1.
2.
3.
4.
To clear all the slums in Chennai & other towns in Tamil Nadu to provide self contained
hygienic tenements,
To prevent the growth of slums & encroachments,
To prevent the eviction of slum dwellers by private owners and to provide the slum
families with security of tenure, and
To provide basic amenities like water supply, street lights, storm water drains, sewer line,
etc to the slum areas.
28.6 TNSCB Projects: 2008-2009

The following slum-related projects are planned or under implementation by TNSCB:
1.
Emergency Tsunami Reconstruction Project: TNSCB plans to construct 11,520

tenements at a cost of Rs.5,700 million in Chennai during 2008-10 under World Bank
aided Emergency Tsunami Reconstruction Project Programme (response to 2005
Tsunami). Details are shown in Table 47.
Table 47: Status of Tsunami Reconstruction
Name of the Scheme
Number of
tenements
Revised cost* (Rs.

in million)
Status
AIR land in north Chennai South Chennai
3616
1395.1
In progress
Okkium Thuraipakkam in South Chennai
2048
965.1
Commenced
Marina Redevelopment Nochikuppam to

Srinivasapuram
5856
3420
Tenders
floated
TOTAL
11520
5780.2
Note: *including tender value
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2.
XII Finance Commission Specific Needs grants: Under this scheme, TNSCB proposes
construct 16,755 tenements in Chennai and other towns providing urban slum
improvement works for 32,000 families, besides repairs and renewal works for 30,000
tenements at a total cost of Rs. 2500 million. The target date for completion of this project
is Mar 31, 2010.
3.
Jawaharlal Nehru Urban Renewal Mission (JNNURM): This programme is taken up

under the Basic Services for the Urban Poor component of centrally shared JNNURM
and funded by the GoI and State Government. As a part of this programme, it has been
proposed to construct 29,894 tenements as integrated townships in Chennai at a total
cost of Rs. 10,723.9 million in the following locations and the status of implementation is
summarised in Table 48.
Table 48: Status of JNNURM - Basic Urban Services
S. no
Name of the Scheme
Number of
Tenements
Cost (Rs.
million)
Status
9936
2575.4
Location of Ezhil Nagar Scheme has

been shifted to Okkiam Thuraipakkam
Already Commenced
Ezhil Nagar
Perumbakkam Phase
10,452
4406.1
To be commenced
Perumbakkam Phase
9456
3742.4
To be commenced
29,864
10,723.9
TOTAL
TNSCB is planning to construct 8-storey (G+7) tenements in Perumbakkam township with

JNNURM funding (Rs 10,100 million) to house 24,000 families being relocated from
objectionable slums. The township will accommodate approximately 100,000 people and
include roads, underground sewerage, schools, public health centres, play ground, parks,
etc. Social and economic (employment) impacts seem to not have been considered.
A Map in Volume 3: Annex 8 shows the locations of JNNURM projects.
4.
Environmental Improvement of Urban Slums: In order to improve the conditions of the

urban slums, TNSCB proposes to provide basic amenities like roads, streets, public
fountains, storm water drain, PC units etc at a cost of Rs. 100 million to benefit 20,000
families during 2008-09.
5.
Elevated Expressway - Rehabilitation and Resettlement of Project Affected

Families: GoTN proposes to construct an elevated expressway from War Memorial to
Maduravoyal as part of Port connectivity project to ease the Cargo traffic. TNSCB will be
responsible for implementing the R&R component of this programme. The 14,000 slum
families living on the alignment of the elevated expressway along Cooum river will be
resettled outside of Chennai in storied tenements with required infrastructure and social
facilities at a cost of Rs 5600 million. The target date for completion of this project is July
31, 2010.
28.7 Slum Improvement Plan

The urban slums should not be treated as separate entities. Preparation of a "Slum
Improvement Plan" is recommended to be integrated with, and seen to be part of, broader,
people-focused urban poverty reduction policies that address the various dimensions of poverty,
including employment, health and education, shelter, access to basic urban infrastructure and
services and the full opportunity to effectively participate in urban decision making.
A Slum Improvement Plan will have to do the following:
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Identify the target urban areas, being those with the highest levels of poverty and
vulnerability;
Establish an information system that helps map and target slum communities and their
problems;
Identify the priority measures to be adopted in these areas through an integrated
diagnosis;
Design and implement a system of incremental planning and development of such areas,
organized in a Local Development Plan, Neighbourhood and Urban Renewal Plans;
Identify investment required and funding sources, including self-help;
Establish governmental and community capacity to identify priority actions to address
identified needs, and enable the implementation of such actions
28.8 Guiding Principles for Slum Improvement

Some of the Guiding Principles for the Sustainable Slum Improvement include to:
Minimize disruption and relocation of existing residents;

Plan, design and implement slum upgrading programmes and projects, building on the
logic of the innovative solutions developed by the poor themselves to improve their living
conditions;
Ensure full participation of primary stakeholders, particularly women, in planning and
decision making as a pre-requisite for any slum improvement or resettlement process;
Emphasize strong political will and local leadership to drive the slum improvement
process;
Create a safe and healthy community;
Address security of tenure;
Recognise and ensure that lower-income communities become an integral, creative and
productive part of the city.
28.9 Issues, Observations and Recommended Approaches

1.
TNSCB Name
The first point of note is the name "Tamil Nadu Slum Clearance Board". This clearly
implies that the goals of the institution are not to help the residents of slums, but rather to
"improve" the environment for the rest of society. A shift in institutional culture is required
if the actual aim is to improve social and economic conditions for the Urban Poor. A name
such as the "Tamil Nadu Lower-Income Development Agency" may be more appropriate.
2.
Current slum improvement practices are not effective:

Current slum actions such as relocating slum dwellers far from their neighbourhoods to
new developments on the outskirts, or constructing multi-storey buildings to relocate slum
dwellers from low rise settlement to high rise blocks do not recognize the socio-economic
realities of lower-income communities and the informal sector. There is a need to restructure the current approach to relocation and rehabilitation with a focus on socially and
economically sustainably development. This must start with a formal recognition of the
informal sector as a legitimate component of the city.
3.
Lack of Institutional Co-ordination

Slum improvement programs should not focus only on physical infrastructure upgrading,
as many do. Instead, programs should focus on the integrated social and economic
development of communities with the objective of overcoming poverty. Such plans should
seek to support the livelihoods of the urban poor by enabling urban informal sector
activities to continue, linking low-income housing development to income generation, and
ensuring easy access to jobs. Physical improvements to infrastructure and shelter can
make positive contributions to this, but fundamental institutional capacities must be in
place first.
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4.
Volume 1
Recognizing the Informal Sector

The majority of slum dwellers earn their living from informal sector activities located either
within or outside slum areas. The main problem confronting the informal sector at present
is lack of formal recognition. Many poor slum dwellers work in the city ensuring that the
needs of the rich and other higher-income groups are met. The informal economic
activities of slum dwellers (and other lower-income) are closely intertwined with the citys
formal economy. Informal services located in slums often extend to the whole city. See
Section 15.2 on Informal Economy. As part of redevelopment process, the service levels
and built spaces for informal settlements should be upgraded to be at par with other
neighbourhoods in the city.
5.
Absence of an integrated approach to slum improvement

Integrated slum improvement means both: (a) the co-ordination of a set of activities which
are mutually supportive in improving livelihoods; and (b) bringing together partners in
carrying out these activities. Policies governing land delivery, infrastructure, land use,
financing, cost recovery and the role of the private sector must harmonise with the
objective of fully integrating the low-income majority into the urban development process.
Access to appropriate shelter and economic opportunities with supporting social
amenities integrated through local Development Plans and Neighbourhood Plans is
required. See Section 29 on Urban Renewal and Section 30 on Integrated
Development.
6.
Inadequate Allocation of Resources for Maintenance

The failure of past slum upgrading and low-income housing development has, to a large
extent, been a result of inadequate allocation of resources for maintenance, accompanied
by ineffective cost-recovery strategies. These are the direct result of the initial project
having been poorly conceived. Future slum upgrading should be based on sustained
commitment of resources sufficient to address this problem.
7.
Property Rights and Mobilisation of Capital

The acknowledged right to be part of the city combined with a variety of appropriate forms
of secure land tenure are perhaps the most critical and catalytic elements of low-income
upgrading. The greatest potential source of private capital is from the slum dwellers
themselves. With a sense of ownership and security, individuals are in a position to
mobilise their own capital, typically investing "sweat equity" or in-kind contributions, in
self-help initiatives. The level of collective private capital far exceeds that of government
and must be mobilised to solve housing problems.
8.
Involving Private Sector

Land is a key asset to leverage for shelter development for slum dwellers. Many slum
communities are situated on high-value real estate. CMDA, TNSCB, ULBs and other
concerned departments should work with private sector companies to develop win-win
partnership projects. Private developers may gain bonus development rights for middle
and higher income housing in return for Slum dwellers can benefit from cross subsidies to
lower-income units.
9.
The importance of full stakeholder participation is stressed throughout the CDP as the
only way to ensure that inputs achieve desired outputs. Slum community residents must
be given the capacity and opportunity to fully participate in all stages of decision making
and project development.
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10.
Volume 1
Integration Between Stakeholders:

Includes all levels of government, NGOs, local leaders, private sector and community
residents. It is important to coordinate with other development programs that already exist
or planned that can be incorporated into the Local Development Plan and Neighbourhood
Plans. In this way, every developmental initiative becomes be part of the greater
development picture, and effort would be neither duplicated nor lost.
11.
In-Situ Upgrading is Preferred

Contrary to first appearance and many misconceptions, slum communities have complex
internal social, economic and governance structures catering to their local needs "survival networks". They also represent large capital investments in terms of time, effort
and whatever construction materials are utilised. In-situ upgrading recognises these
valuable attributes and works to build upon them. Locations for informal dwelling and
economic activity are carefully selected by residents to be as close as possible to
economic opportunities, whatever services they can find, and compatible community
origins within, of course, the limits of available space to settle. Typical clearance and
relocation projects destroy these critical survival networks, dislocate people to locations
far removed from where they need to be, wipe-out their individual capital investments,
and generally serve to worsen social and economic conditions. A nice new, but
unsustainable building does nothing to alleviate poverty.
Where relocation is the only solution, all effort should be made to keep this within 4-500m
of the original location and closer if possible. It is unlikely that nearby lands will be
available for a typical large-scale "project" approach, and a much more sensitive, smallscale and participatory approach is required to develop a large number of micro in-fill,
redevelopment opportunities within the original neighbourhood context.
12.
Preventing New Slums

Most slum residents would not choose to live in slum conditions if they had a choice. In
the absence of supportive and appropriate government initiatives they have no choice.
The only way to prevent new slums, short of physical intervention, is for government to
ensure that viable alternatives are in place in advance. This means improved access to
economic opportunities and social amenities, access to affordable and appropriately
located land with the beginnings of upgradable infrastructure in place.
28.10 Slum Improvement Projects

Table 49 presents a summary of identified Slum Improvement Projects in various categories
with cost estimates and responsible agencies where available. These are further summarised in
Table 50 and prioritised in Part E.
28.11 Implementation
CMDA should have overall responsibility for preparing a comprehensive strategy and plan for
slum improvement and to coordinate and supervise the slum improvement activities. A New
Integrated Planning and Development Cell or Department in CMDA should be established to
carry out these tasks. See Section 19 on Institutional Development and Capacity Building.
Projects will be implemented under the overall coordination and supervision of CMDA by
TNSCB and various government line agencies, ULBs, the private sector, residents and NGOs.
A pilot project should be prepared to demonstrate the integrated approaches to slum
improvement in the context of urban renewal and neighbourhood development.
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Table 49: Project Summary Slum Improvements

Rehab
TBD: To be decided
Location
Project Name
Existing or
Planned
Proposed
"Gap"
New Work
Rehab
Cost (Rs. Million)

Sanctioned
Possible
Funding
Source
Lead
Agency
SL1
SL2
SL3
SL4
SL5
SL6
SL7
SL8
SL9
Elevated Expressway - Rehab. & Resettlement

Emergency Tsunami Reconstruction Project
XII Finance Commission-Special needs grants
Environmental Improvement of slums
R&R - Okkiyumthorapakkam (Ezhil Nagar scheme)
R&R - Perumbakkam Scheme I
R&R - Perumbakkam Scheme II
In-situ upgradation for slums on unobjectionable land
R&R for slums on objectionable land
5,600
5,707
2,500
100.0
2575.4
4406.1
3742.4
24,631
SUB TOTAL - CoC

SL10
SL11
SL12
SL13
SL14
SL15
SL16
SL17
SL18
SL19
SL20
SL21
SL22
SL23
SL24
SL25
SL26
SL27
SL28
SL29
SL30
SL31
SL32
Municipalities
Alandur
Ambattur
Avadi
Kathivakkam
Madhavaram
Pallavapuram
Tambaram
Thiruvottiyur
Maduravayol
Thiruvekkadu
Ullagaram Puzhuthivakkam
Valasaravakkam
Manali
Municipalities - Insitu upgrd
Town Panchayats
Chitlapakkam
Madampakkam
Mangadu
Meenampakkam
Minjur
Pallikaranai
Parungalathur
Perungudi
Porur
Sholinganallur
Town Panchayats - R&R
In-situ upgradation for slums on unobjectionable

land
land
land
land
land
land
land
land
land
land
land
land
land
-

SUB TOTAL
land
land
land
land
land
land
land
land
land
land
5,807.5
48.9
116.9
30.3
32.2
74.7
146.3
41.3
101.5
8.6
25.3
16.4
18.7
32.0
692.8
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
12.2
65.0
42.1
20.8
96.8
23.9
20.6
6.8
43.5
19.5
351.2
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
1,044.0
Total Insitu upgrad. in CMA
Main Report
Highwy Dept
TNSCB
GoI
TNSCB
GoI
TNSCB
GoTN
TNSCB
JNNURM TNSCB
JNNURM TNSCB
JNNURM TNSCB
2,261.8 TBD
CMDA & TNSCB
3,545.7 TBD
CMDA & TNSCB
129
#
SL33
SL34
SL35
SL36
SL37
SL38
SL39
SL40
SL41
SL42
SL43
SL44
SL45
SL46
SL47
SL48
SL49
SL50
SL51
SL52
SL53
SL54
SL55
SL56
Volume 1
Location
Project Name
Municipalities
Alandur
Ambattur
Avadi
Kathivakkam
Madhavaram
Pallavaram
Tambaram
Thiruvottiyur
Maduravayol
Thiruverkkadu
Anakaputhur
Valasaravakkam
Manali
Municipalities R&R

Town Panchayats
Chitlapakkam
Minjur
Pallikaranai
Parungalathur
Perungudi
Porur
Sholinganallur
Nandampakkam
Sembakkam
Town Panchyts - R&R
Existing or
Planned

New Work
Rehab
Cost (Rs. Million)

Sanctioned
Possible
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
42.9
114.6
167.7
170.7
57.0
13.2
349.8
111.3
279.0
1,306.2
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
CMDA, TNSCB
8,999.0 TBD
CMDA, TNSCB
Total Undeveloped slums
11,484.7
Further upgradation of developed slums
20,484
Study of Slums on Private Lands in CMA
5.0 TBD
20,489
TOTAL PROJECT COST
Main Report
Lead
Agency
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
TBD
4,633.2
Total Developed slums
Funding
Source
88.8
294.0
232.5
135.0
10.2
276.9
55.5
818.1
899.4
308.1
119.7
40.2
48.6
3,327.0
Total R&R in CMA
TOTAL SLUM IMPROVEMENT INVESTMENTS

SL57
Proposed
"Gap"
130
CMDA, TNSCB
Volume 1
28.12 Investment Required

The current approach to slum improvement considers further investment only in those slums
that have not previously received attention - "undeveloped" slums. However, the reality is that
conditions are also poor in "developed" slums. Previously improved infrastructure has
deteriorated due to lack of maintenance, and socio-economic conditions may be identical. The
CDP recognizes that on-going work is required to improve conditions for all urban poor
regardless of bureaucratic designation. Investment projects are therefore proposed in both
"undeveloped" slums in line with current government practice, and in "developed" slums for
further improvement. As with all development strategies, the priority step is to establish the
required institutional structures and capacities. It is essential that effective infrastructure
management and maintenance programs are in place and functioning sustainable prior to
investing in capital works. This may be the biggest challenge facing the TNSCB and others
involve in lower-income community development. Once gain, the key to success is Stakeholder
Participation throughout.
The total estimated new investment required to continue TNSCB's current programs is Rs
11,484 million. Add to this an estimate amount for further upgrading of "developed" slum areas
of Rs 9,000 million for a total potential Slum Improvement investment of Rs 20,484 million. See
Table 50 below. Not indicated is the potential investment need of another Rs 45,000 million if
government were to relocate and assist all slum dwellers currently living on private land. See
also Volume 3: Annex 8 for further details of required capital investment.
Table 50: Government Land Slum Improvement Cost Estimates
Location and Type
Total Slums
Undeveloped - CoC
Unobjectionable for In-Situ U/G
Objectionable for Relocation
Less JNNURM Approved for Objection.
Sub-total CoC (New investment)
Total Slums Families/Units Unit U/G Cost Sub-Total

Total
Investment Investment
(million Rs) (million Rs) (million Rs)
1,431
326,168
0.075
0.300
0.300
242
30,157
41,683
29,864
71,840
Undeveloped in Balance of CMA

Unobjectionable for In-Situ U/G
Objectionable for Relocation
Sub-total CMA
112
90
202
13,917
15,444
29,361
0.075
0.300
Sub-total Undeveloped Slums
444
101,201
Developed Slums: Estimate for Further U/G
987
224,967
1,431
326,168
Total Investment for All Slums
120
122
2,262
12,505
-8,959
5,807
1,044
4,633
5,677
11,484
0.040
9,000
20,484
Sources and assumptions:
Number of slums and dwelling units based on the TNSCB data including report on Pre-Feasibility Study
For Identification Of Environmental Infrastructure Requirement In Slums (2004 data).
Unit cost for Rehabilitation and Resettlement of Rs 300,000, TNSCB
Unit cost for In-Situ Upgrading of Rs 75,000, Consultant estimate
Developed Slum Unit number, Consultant estimate
Unit cost for further Upgrading of Developed Slums of Rs 40,000, Consultant assumption
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29. Urban Renewal

29.1 Current Scope of Urban Renewal
"Urban Renewal" in the CMA has a specific connotation of a limited scope referring to a set of
projects allocated to the TNSCB. This Revised CDP broadens the definition of "urban renewal"
to encompass a full range of rehabilitation, infill, redevelopment, conservation, preservation and
optimisation concept approaches.
One of the strategies proposed for housing and inclusive development in the SMP is to identify
suitable land for urban renewal such as redevelopment and rehabilitation taking into
consideration the age and structural stability of buildings, land use and level of infrastructure by
TNHB and TNSCB.
One of the Mission objectives of JNNURM is to focus on urban renewal programs for the old city
areas to reduce congestion. TNSCB has been implementing the urban renewal schemes in the
State. The TNSCB initiatives essentially consist of removing urban slums and redeveloping
individual properties with a combination of commercial and residential intended as replacement
shelter for the former slum dwellers. These programmes have been implemented out of the
institutional loan assistance and the repayment of the loan is taken care of by TNSCB. The
status of the urban renewal projects in CMA implemented by the TNSCB is shown on Map 12.
Existing urban renewal projects have a traditional and somewhat narrowly focused approach
which relies almost exclusively on physical redevelopment initiatives in a piecemeal, ad hoc
way. Most of the schemes ignore the wider dimensions of urban renewal, such as the need to
support local businesses and to tackle social issues. TNSCB's efforts at redeveloping urban
sites for a mix of commercial and slum-relocation have met with limited success. However,
much more can and should be included in this sector to develop a series of integrated
regeneration, revitalisation, and roadway and other infrastructure optimisation projects that
provide benefits to all of Chennai's residents.
29.2 Expanded Scope of Urban Renewal - Concept

Making maximum use of existing infrastructure is one of the key principles of sustainable
infrastructure economics and affordable urban development. By optimising land use and
infrastructure in already developed areas, the need for expensive new infrastructure is avoided,
the loss of agricultural or natural lands is minimized and development remains more
concentrated reducing the need for expensive and environmentally damaging travel. Growth
trends in recent decades suggest a fleeing from the City to rural areas, largely because
conditions in the urban centre have been allowed to deteriorate making it no longer an attractive
place to live for those who can afford to go elsewhere. Revival of urban cores and a return to
central live-work conditions is now being demonstrated throughout the world in response to
economic and environmental realities.
29.3 Urban Renewal Programme

Urban renewal is not just about the replacement of old buildings with new ones. The purpose of
urban renewal is to address the problem of urban decay and to improve the living conditions of
residents in dilapidated urban areas.
The Urban Renewal Programmes will be aimed at "renewing" strategic urban areas or localities,
to improve the quality of life through innovative planning and development. The urban renewal
process is a complex combination of social, economic, planning, construction and management
activities. These elements of urban renewal are brought together to improve the sustainability of
the urban landscape it occupies.
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Map 12: Urban Renewal Projects - Chennai City
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29.4 Key Approaches to Urban Renewal

A comprehensive and holistic approach should be adopted to revitalise strategic older urban
areas by:
Optimising existing transportation and other urban infrastructure;

Redevelopment by replacing old buildings with new to provide a better living environment
and neighbourhood;
Rehabilitation of dilapidated buildings to prevent further urban decay;
Maintaining and restoring buildings of historical and architectural value, and to sustain
local characteristics;
Revitalising roads and streets with landscaping, lighting and footpath improvements to
optimise conditions of all current users;
Enhancing and strengthening the socio-economic and environmental fabric for the benefit
of local urban communities;
Creating opportunities for affordable housing and both formal and informal economic
activities.
29.5 Guiding Principles for the Urban Renewal

Some of the Guiding Principles for the Urban Renewal in Achieving Urban Sustainability
include:
Emphasizing strong political will and local leadership to drive the urban renewal process;
Reflecting the peoples oriented approach in the urban renewal strategy
Retaining a unique original character and the social network
Optimising existing infrastructure
Providing tax incentives and grants to refurbish properties;
Maximising prime real estate utilisation for increased tax revenues by encouraging
redevelopment of derelict buildings or under utilised industrial sites / areas.
Encouraging economic initiatives, formal and informal, (eg small shops, business centres
etc.) which provide more accessible employment opportunities for local people
Conserving buildings of heritage value to renovate buildings which are in poor condition
Local development partnerships should be given a role in promoting urban renewal projects,
which would be supported by funding from state government and central government levels.
Careful consultation with, and participation by, the local affected community and all
stakeholders should take place throughout all stages of the project. It is important to ensure that
all affected parties, including (a) owners whose properties are acquired for the implementation
of redevelopment projects should be offered fair and reasonable compensation; (b) tenants
affected by redevelopment projects should be provided with proper re-housing; and (c) the
community at large should benefit from urban renewal.
29.6 Urban Renewal Plan

CMDA should have responsibility for preparing a comprehensive urban renewal strategy as the
overall guiding framework with identified priorities. A target area approach is suggested to focus
concerted efforts and resources on where priority redevelopment or rehabilitation actions are
required.
The Urban Renewal Plan for each of the priority (target) areas shall include, but not be limited
to, the following:
Main Report
Identification of the proposed boundaries of the urban renewal area.

A description of the conditions that qualify the area as an urban renewal site for
redevelopment and the kinds of redevelopment activities, including actions that are
proposed to address these conditions
Identification of the anticipated impact of the proposed redevelopment activities on the
urban renewal area and on the larger community such as job creation and/or retention,
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business expansion, housing development, traffic and infrastructure improvements and a

description of the resulting public benefits.
Identification of any relocation that will result from the proposed actions and the
resources available for displaced businesses/people
Identification of current owners of land parcels within the proposed project area, current
zoning, land use and proposed changes in land use and zoning.
Identification of investment projects including aspects which would be of communal
benefit to the wider community. This could include public parks, community halls, sports
and leisure facilities and public services, such as health centres, etc.
Identification of investment required and funding sources
Project implementation
The Urban Renewal Plan shall also include maps of the project area and the adjacent or
surrounding area illustrating:
Boundaries of the project area and typography,

Boundaries of areas proposed for clearance and areas proposed for rehabilitation,
Property lines and the foot-print of buildings, existing and proposed,
Existing uses, including identification of land in mixed uses and land in public use, and
the current zoning,
Proposed land uses, other activities,
Parcels to be acquired,
Buildings to be demolished, rehabilitated, constructed and preserved.
Planning must be closely integrated with separate slum improvement initiatives being carried
out by TNSCB or others. See Section 28.
Urban Renewal Implementation
The projects will be implemented under the overall coordination and supervision of CMDA by
various government line agencies, the private sector and non-governmental agencies.
A New Urban Renewal Cell or department in CMDA shall be established to plan, coordinate and
supervise the urban renewal activities. See Section 19 on Institutional Development and
Capacity Building.
29.7 Priority (Target) Areas for Urban Renewal

A preliminary list of identified priority Urban Renewal areas includes:
Basin Bridge
New Secretariat Government House Estate
Royapuram
George Town
Perimedu (near Egmore)
Mylapore Temple and Tank Area
Perambur
Triplicane (Thiruvallikeni)
Map 13 shows priority areas for urban renewal.

Figure 14 shows a Conceptual Approach to Urban Renewal linked with Street Space
Optimisation as further discussed under Transportation and Mobility, Section 20. Figure 15
illustrates a Conceptual Approach to Urban Renewal for the priority Basin Bridge area. See also
Section 30 on Integrated Development.
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Map 13: Chennai - Priority Areas for Urban Renewal
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Figure 14: Street Space Optimization - Concept
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Figure 15: Basin Bridge Conceptual Urban Renewal
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30. Integrated Developments

30.1 Definition
The term "integrated development" refers to simply taking into consideration the full range of
components affecting or affected by planning for a particular development. Too often, due
largely to siloed bureaucracies that fail to cross-communicate, developments are planned and
implemented in isolation often creating conflicts or missing valuable opportunities for integrating
other benefits to a community and saving resources. Figure 16 conceptually illustrates the
range of typical components that should be considered for any piece of urban development.
Figure 16: Integrated, Sustainable Urban Development
30.2 CDP Applications

All proposed project investments in every sector should be subject to an "integration" analysis to
maximise investment opportunities and spin-off socio-economic or environmental benefits and
minimize the negative impacts on the same. The following are some more specific cases:
30.2.1
Urban Renewal
Urban Renewal initiatives discussed in more detail in Section 29 are integrated developments
and should adopt the principles outlined here.
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30.2.2
Volume 1
Slum Upgrading
Slums comprise complex and integrated social, economic and physical networks like any other
form of settlement. Initiatives to upgrade and improve conditions in slums must be cognizant of
this complexity and not attempt to simply tackle an isolated situation.
30.2.3
Sustainable Neighbourhood Development
Introduction
A sustainable neighbourhood means a well serviced, safe and healthy neighbourhood with
optimum local accountability and influence over service management. It should comprise of a
well planned, integrated and identifiable local and neighbourhood centres, a range of housing
choices for different income groups and access to jobs, education, healthcare, schools, leisure,
retail, public transport and open space contributing to a high quality of life.
A neighbourhood plan may be for an area of undeveloped land (i.e greenfield development) or
may be for infill or redevelopment of an already built up area of the settlement, or a combination
of both.
Proposed Sustainable Neighbourhoods
A series of approximately six new composite neighbourhoods is proposed along the planned
Outer Ring Road (ORR) in CMA. Each of these new neighbourhoods is envisaged to cater to
approximately 30,000-40,000 persons and represent a prime opportunity to undertake
innovative sustainable development. Most likely these new neighbourhoods will be centred on
an existing settlement as a core, which is then subject to integrated urban renewal to upgrade,
revive the existing settlement and form the nucleus of a new neighbourhood. Infill development
and redevelopment of existing settlement will offer new commerce and housing options that
enhance the neighbourhood character.
Developing these will of necessity be "integrated developments" and planning for them must be
approached in that manner, rather than ad hoc as a series of disconnected infrastructure
investments. Successful integrated development is based on full stakeholders participation
from the outset, well before any physical planning or land allocations are decided upon.
New neighbourhoods should be planned within tight, specifically defined boundaries beyond
which development is not permitted. New neighbourhood development must be based on
decentralised local governance with the necessary resources - human, technical and financial to plan, implement and manage, if the new settlements are to be sustainable. In this way one of
the environmental goals of minimising further ad hoc sprawl in sensitive areas is addressed.
Neighbourhood Plan
The Neighbourhood Plan is intended to (a) provide guidance for the development of large and
complex areas of the community through the development of neighbourhood plans; and (b)
provide planning for small areas of vacant, underutilized or redeveloping lands within the built
up area of existing settlement.
Public input and participation by the local community in the neighbourhood planning process is
critical to the plans success. Neighbourhood plans should be viewed as living documents that
continue to evolve as local community expectations change and additional renewal
opportunities arise.
Guiding Principles for the Sustainable Neighbourhood Planning are to:
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Improve the appearance and character of the existing settlement and neighbourhood
areas through the development of streets and open spaces;
Protect and preserve green spaces, agricultural land and environmental / ecological
sensitive areas;
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Ensure housing meets the needs of the whole community;

Create strong, compact and complete neighbourhoods;
Create a culture of sustainability;
Facilitate creation of employment opportunities, both formal and informal, within
neighbourhoods;
Improve traffic circulation and safety;
Improve pedestrian and landscape links between community facilities;
Revitalize the old core settlement area.
The Neighbourhood Plan will identify and consider the following:
Current and future community needs;

Community impact and benefit;
Context of the community planning area within the neighbourhood ;
Natural features and environmental management considerations;
Potential historical, cultural or archaeological significance of the area or site if any;
Existing and required infrastructure (e.g. storm, sewer, water, roads);
Transportation linkages (e.g. vehicle, pedestrian, cycling, etc.);
Parks, recreation and open space;
Community facilities, services and amenities;
Land use and densities;
Development pattern and sequencing.
CMDA should have responsibility for preparing and implementing Neighbourhood Plans.
The projects will be implemented under the overall coordination and supervision of CMDA by
various government line agencies, ULBs, the private sector and non-governmental agencies
A New Integrated Planning and Development Cell or Wing in CMDA shall be established to
plan, coordinate and supervise the neighbourhood development activities. See Section Error!
Reference source not found. on Institutional Development and Capacity Building.
Figure 17 illustrates a Conceptual Approach to Sustainable Neighbourhoods along the planned
Outer Ring Road.
Table 51 summarises proposed projects on integrated development and urban renewal.
A series of approximately 6 new neighbourhoods are proposed along the planned Outer Ring
Road. Developing these will be "integrated developments" while also including elements of
Urban Renewal where existing towns or villages are incorporated. Planning for new
neighbourhoods must be approached in that manner, rather than ad hoc as a series of
disconnected infrastructure investments. Successful Integrated Development is based on full
Stakeholder Participation from the outset, well before any physical planning or land allocations
are decided upon.
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Figure 17: Conceptual Sustainable Neighbourhoods
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Table 51: Project Summary - Integrated Development and Urban Renewal
Existing/Planned
Integrated Development and Urban Renewal

#
Location Project Name
New Work
Rehab
TBD: To be decided
Existing or Proposed New Work

Planned
"Gap"
Rehab
Cost (Rs. Million) Funding

Sanctioned Possible Source
Lead
Agency
CMA
ID1
ID2
Preparation of Integrated development strategy and plan

Detailed urban renewal plan & approaches for 2 priority areas
3.00 TBD
5.00 TBD
8.0
TOTAL PROJECT COST
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CMDA
CMDA
Volume 1
31. Social Amenities

Health, educational and recreational components are not directly addressed in this Revised
CDP, but form an integral part of urban living and must be key considerations in urban renewal,
slum upgrading or new neighbourhood developments. Current initiatives by the TNSCB, for
example, ignore the importance of providing appropriate access to these social amenities when
re-locating urban slum dwellers well beyond city boundaries and far removed from their points
of origin.
National and State standards for provision of social amenities based on population and
proximity must be adhered to and periodically reviewed for appropriateness for ever-changing
conditions. In addition to the capital expenditure hardware side of built facilities, a matching
need must be addressed for qualified personnel and recurrent management/maintenance costs.
32. Heritage Resources - Natural and Manmade

The city is well known for its temple architecture, cultural heritage and classical dance. There
are several ancient temples around the city, and within the city itself are two magnificent
temples - a temple in Triplicane and another in Mylapore. Mahalapuram is a temple town
located close to Chennai on the shores of the Bay of Bengal. It is known for its architecturally
brilliant monuments, caves and beaches and has the famous shore temple. Natural and Cultural
Heritage assets need to be recognized as the valuable resources they are, identified, protected,
incorporated sensitively into contemporary development and made available to the public to
enjoy. Costs of preservation may be significant, but the costs of irreplaceable loss are even
greater.
The State Department of Archaeology was started in the year 1961 with the objectives of (a)
conservation and preservation of ancient monuments in Tamil Nadu, and (b) to conduct
excavations at historical sites. Subsequently, its activities were expanded to include Epigraphy,
setting up of site museums, chemical preservation of art objects, registration of antiquities etc.
In Chennai district, the Department of Archaeology has identified the Memorial Pillar Arasu
Pannai in Guindy-Mambalam taluk as a protected monument under the control of the
department.
INTACH9 has put together a list of heritage buildings, precincts and natural features in the city
which is presented in Volume 3 Annex 9.
The Second Master Plan provides the Special Rules for conservation of buildings of historical or
architectural interest. In the opinion of the Authority, if a building or premises not covered under
the Archaeological Monuments Act is of historical or architectural interest and needs to be
conserved, such heritage buildings/premises shall be listed and notified and any development at
such heritage building premises shall conform to the regulations given in Annexure XXV of the
Second Master Plan.
The Indian Trust for Art and Cultural Heritage (INTACH) is a nationwide, non-profit membership organisation. INTACH was set
up in 1984 to protect and conserve Indias vast natural and cultural heritage..
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Part E: Investment Selection and Prioritisation

33 Investment Selection
Preparation of the Revised CDP includes three investment selection elements:
1.
Review and incorporation of investments proposed in the 2006 CDP;
2.
New investments identified in, or in support of, the subsequently approved Second Master Plan
(SMP);
3.
"Gap" investments identified by Stakeholders and/or the Consultant Team in support of

achieving the goals and objectives of the SMP.
34 Investment Prioritisation
In order to achieve orderly and feasible development of the CMA in accordance with the approved
Macro-Level Growth Management Strategy, and acknowledging the reality of limited available
resources, it is essential that investments be organised and prioritised within a logical framework and
in a logical order. Four organisational/prioritisation steps are used:
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Step 1: Geographic Organization:

a.
b.
c.
d.
Overall CMA
City of Chennai
Peri-urban Municipalities
Village Panchayats
All geographic components require development support, and their respective developments
are integrated in support of achieving sustainable macro-level growth. If priority is assigned
anywhere, it is to the Peri-Urban Municipalities as proposed prime recipients of future
population growth.
Step 2: Investment Categories

Within each geographic area, there are two proposed categories of investment, both of which
are required for comprehensive development:
a.
Optimisation - First Priority

Making the best use of existing through redevelopment, rehabilitation, re-management,
etc.
Advantages
supports the basic infrastructure economic principle of making best use of

existing infrastructure and investments prior to embarking on new ones;
typically more effective and efficient at less cost, are less disruptive to
existing communities with potential to be more responsive, environmentally
more sustainable; and
may eliminate the need for many expensive new capital works investments;
Disadvantages
b.
require more sensitive understanding and analysis of situations, and

perhaps more design and management effort;
may be perceived to be publicly less visible;
fewer opportunities to award large contracts (also an advantage).
New
Advantages
typically easier to design and manage as complicated existing conditions

can be ignored;
more publicly visible;
offer greater business opportunities through larger-scale contracts.
Disadvantages
typically more expensive;

typically more disruptive and less sensitive to existing conditions,
communities, environment. In urban areas, large-scale transport
infrastructure projects often benefits high-income groups the most and have
often been negatively associated with failed attempts at achieving urban
progress.
A strong central planning and coordination agency can weave together a combination of "new"
and "optimisation" investments to achieve strong and sustainable development.
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Step 3: Sector Prioritization

Within both "Optimisation" and "New" investments are further prioritised by Sector while
acknowledging the frequent need for considerable overlap and integration. Refer to respective
Sections for detailed discussions:
1.
Institutional Structure, Reform and Capacity Building

Priority #1: Without an adequate institutional structure in place and operating, no other
sector can be sustainably planned, implemented or managed. Ideally, the structure and
capacities are in place prior to undertaking development investments. However, if
properly structured and supported, the planning, implementation and management of
investments can simultaneously serve as real-life capacity building opportunities.
Environmental Management is the underlying and cross-cutting base layer for all development
investments. Two sectors emerge as priorities once the supportive institutional work is in place:
2.

Priority for health of all residents and key to successful implementation of Water Body
Management and Sanitation Programmes.
3.
Water Ways Management

Priority for all parts of the CMA to address water source availability, flood management,
mosquito control.
Other sectors also have significant environmental impacts, and all must be carefully integrated.
4.
Water Supply
An essential basic service that relies also on implementation of the above programmes.
5.
Optimisation and upgrading in City with focused expansion

Expand, optimise and upgrade in Peri-Urban Municipalities and Growth Points
Consolidate development of new infrastructure and services in new Outer Ring
Road neighbourhoods
Limited upgrading of existing in Village Panchayats to discourage significant new,
ad hoc development
Sanitation
An equally important basic service closely tied to water supply in most urban situations.
Investments should follow the same prioritisation as outlined above for water supply.
6.
Transportation/Mobility
The related physical infrastructure forms the main physical framework for urban
development. However, effective mobility relies as much on institutional capacity as it
does on physical infrastructure. No amount of investment in hardware will compensate for
deficient software. Optimisation of existing infrastructure combined with a focus on
efficient mass public transit are the priorities in this sector.
A number of other sectors addressed in the CDP are really the more complex integration of the
specific sectors outlined above:
7.
Slum Upgrading - Basic Urban Services for the Poor

Involves all of the sectors outlined above, but is currently treated institutionally separate
for slum areas. A review of this segregation policy is recommended if all segments of the
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population are to be democratically recognised as valuable and legitimate elements of the

community.
8.
Shelter
Includes a wide range of formal, informal, public, private and PPP initiatives to support
access to safe, healthy and affordable shelter in conjunction with all related infrastructure,
social and economic amenities.
9.
Integrated Urban Development and Urban Renewal

This term is used with reference to more new development than renewal work. Specific
reference is made to the new Neighbourhoods to be developed along the Outer Ring
Road. However, it can equally apply to the larger scale development or redevelopment of
vacant or underutilised urban lands. Once again this involves all of the above sectors.
The term urban renewal is currently used institutionally throughout India, and specifically
by the Tamil Nadu Slum Clearance Board in a very narrow context. The Revised CDP
expands the definition to its full meaning as discussed in Section 29 involving integration
of all of the other sectors.
10.
Heritage Resources: while last on the list these are critical assets that can be identified
individually in isolation and also need to be carefully identified and managed in
connection with any and all of the other development sectors where impacts or
opportunities may occur.
Step 4: Individual Project Selection, Prioritization

Within each Sector there is a long-list of possible Projects. The final Prioritisation Step requires
the objective scoring of these on the basis of:
Technical feasibility;
Environmental impact;
Socio-Economic impacts;
Financial-Economic feasibility;
Linkages to other investments; and
Institutional readiness.
Less objective, but also critical in the prioritisation process is consideration of community
perceptions and political will.
The earliest possible visible demonstration of action resulting from the considerable efforts and
contributions of all participating stakeholders will help to build CDP acceptance. Selection
criteria should include: be immediate and short-term, low-cost but community-visible project
involving and benefiting both the formal and informal sectors. A Pilot Project in Street Space
Optimisation is one viable option. This meets all of the criteria. Providing the opportunity for
serious local stakeholder participation will demonstrate CoC's commitment to the concept, while
ensuring that word spreads quickly through the majority informal sector. Visible results will be
quickly achieved. Actions by agencies such as Chennai City Connect have already established
a starting point.
Table 52 presents the full range of projects considered by the CDP with implementation priority
as short, medium and long term. See Part F for a discussion of financing and implementation.
Main Report
148
Volume 1
Table 52: Investment Prioritisation

CMA
Component
Sector
Project
Category
Optimise
Upgrade
New
Study
Under
Implem.
Cost
Million
Rupees
Phase
Remarks

Institutional Devel.
Institutional Reforms
Training and workshops
Socio-Economic Study of Private Land Slums
X
X
Sub-Total
X
Sub-Total
Integrated Develop /
Urban Renewal
Preparation of Integrated development strategy and plan

Detailed urban renewal plan & approaches for 2 priority
areas
Sub-Total
Transportation
200.00
25.00
225.00
5.00
5.00
S-M
S
See Annex of Institutional & CB

See Annex of Institutional & CB
See section on basic services for poor
3.00
See Urban Renewal, Neighbouhoods
5.00
8.00
See Urban Renewal, Neighbouhoods
Urban Bus Transit System

New 11 Bus terminals & 26 depots
2,451.00
New Link Roads

Tambaram Eastern Bypass
ORR from NH45 to TPP Road :
Outer Ring Road from ECR to NH45
ORR from Seemapuram to Ennore Port
Link of ORR from MBI Road to OMR
Ambattur Estate to ORR
IRR south Mount St. Thomas - OMR
Link of OMR to ECR (Prathana)
450.00
1,570.00
934.00
600.00
1,500.00
300.00
4,380.00
Bridges/Culverts/ROB/RUB-Widening
Mobility hubs
Near St. Thomas Mount (MRTS & Metro )
235.00
12,420.00
Sub-Total
Waterways Mgmt. River
Rehab.Projects
River Rehabilitation - Cooum
River Rehabilitation - Adyar (Including river front
development)*
River Rehabilitation - Kosasthalayar
Sub-Total
Main Report
149
4,000.00
S-M
Refer to PFS for details
X
X
2,900.00
160.00
7,060.00
S-M
S-M

CMA
Component
Sector
Waterways Mgmt.
(Stormwater Drain
projects)
Volume 1
Project
Category
Optimise
Upgrade
Cooum River Growth Corridor

Adyar River Growth Corridor
Buckingham Canal growth Corridor
Block Cost Estimates for Drainage Systems in CMA
Construction of collecting and feeder drains
Silt Catch pits with SFRC cover and inlet
Other ancillary structures
Engg, Contingencies, Admn. Charges
New
X
X
X
Cost
Million
Rupees
9,500.00
550.00
1,100.00
20,670.00
Phase
Remarks
S-M
S-M
S-M
S-M

31,820.00
Improvement of Integrated Solid Waste

Management System in Cluster - I
Implementation of Reclamation and Restoration of the
existing solid waste dumping sites at Kodungaiyur leading to
safe closure
Construction of 8 Transfer Stations including computerized
weighing system except CoC
Procurement of collection and transportation
equipments/vehicles
including infrastructure facilities (After finalization of site)
Development of Sanitary Landfill Site including infrastructure
facilities (After finalization of site)
Main Report
Under
Implem.
X
X
X
X
Sub-Total
Solid Waste
Management
Study
150
734.00
S-M
9.60
S-M
X
X
X
4.00
5.00
35.00
S-M
S-M
S-M

606.18
S-M
450.00
S-M
500.00
S-M
CMA
Component
Sector
Volume 1
Project
Category
Optimise
Upgrade
New
Study
Under
Implem.
Cost
Million
Rupees
Phase
Remarks

Management System in Cluster - II
weighing system
equipments/vehicles
Development of 400 TPD Capacity Compost Plant including
Studies
13.20
S-M
X
X
X
5.00
5.00
35.00
S-M
S-M
S-M

311.18
S-M
180.00
S-M
X
X
315.00
S-M
S-M

Study on solid waste quantification and characterization
S-M
Preparation of Comprehensive solid waste Master Plan

Study for identification and finalization of solid waste disposal
site
S-M
S-M

Management System in Cluster - III
Implementation of Reclamation and Restoration of the
existing solid waste dumping sites at Perungudi leading to
safe closure
weighing system
equipments/vehicles
including infrastructure facilities(After finalization of site)
Main Report
151
587.00
S-M
20.40
S-M
X
X
X
9.00
5.00
40.00
S-M
S-M
S-M

749.18
S-M
540.00
S-M
600.00
S-M
CMA
Component
Sector
Volume 1
Project
Category
Optimise
Upgrade
New
Study
Under
Implem.
Cost
Million
Rupees
Phase
Remarks
Studies
Detailed study on Reclamation and Restoration of the
existing solid waste dumping sites at Perungudi
S-M
S-M
S-M

site
S-M
S-M

Management System in Cluster - IV
weighing system
equipments/vehicles
Studies
X
X
3.60
30.00
S-M
S-M

76.80
S-M
25.00
S-M
X
X
25.00
S-M
S-M

S-M

site
S-M
S-M

Management System in Cluster - V
weighing system
equipments/vehicles
Main Report
152
X
X
2.40
20.00
S-M
S-M

80.45
S-M
27.00
S-M
25.00
S-M
CMA
Component
Volume 1
Sector
Project
Category
Optimise
Upgrade
New
Study
Under
Implem.
Cost
Million
Rupees
Phase
Remarks
Studies
S-M
S-M

site
S-M
S-M

Management System in Cluster -VI
weighing system
equipments/vehicles
Studies
X
X
2.40
20.00
S-M
S-M

65.09
S-M
13.00
S-M
X
X
15.00
S-M
S-M

S-M

site
S-M
S-M

Management System in Cluster - VII
Construction of 1 Transfer Station including computerized
weighing system
equipments/vehicles
Main Report
153
X
X
1.20
20.00
S-M
S-M

79.21
S-M
25.00
S-M
25.00
S-M
CMA
Component
Volume 1
Sector
Project
Category
Optimise
Upgrade
New
Study
Under
Implem.
Cost
Million
Rupees
Phase
Remarks
Studies
S-M
S-M

site
S-M
S-M

Management System in Cluster - VIII
weighing system
equipments/vehicles
Studies
2.40
25.00
S-M
S-M

94.98
S-M
50.00
S-M
X
X
40.00
S-M
S-M

S-M

site
S-M
S-M
Sub-Total
Main Report
X
X
6,552.27
154
CMA
Component
Sector
Volume 1
Project
Category
Optimise
Upgrade
New
Study
Under
Implem.
Cost
Million
Rupees
Phase
Remarks
Solid Waste Mgmt.
Solid waste Management of Chennai

Solid waste Management for Alandur, Tambaram and
Pallavaram
2,553.20
S-M
On-going
442.10
2,995.30
S-M
On-going
3,598.64
S-M
On-going
4,440.70
S-M
On-going
2,989.70
S-M
On-going
3,450.00
14,479.04
S-M
On-going
X
X
4,000.00
91.10
120.00
4,000.00
2,000.00
110.00
2,400.00
70.00
60.00
110.00
120.00
1,000.00
9,962.00
24,043.10
S
S
S
S
S
S
S
S
S
S
S
S
S
350.00
200.00
1,000.00
615.00
80.00
50.00
2,295.00
S
S-M
S
S
S
S
Sub-Total
Water Ways Mgmt.
(Stormwater drain
Projects
Improvement of storm water drains

Improvement of storm water drains in the Eastern Basin of
Chennai
Improvement of storm water drains in the Southern Basin of
Chennai
Improvement of Storm Water Drains in the Central Basin of
Chennai
Sub-Total
Water Supply
Improvements to Existing System

Sump cum Pumphouse - Poondi Reservoir
Leak Detection and Rectification
Replace old PVC & CI Mains with DI Pipes
Refurbish Water Treatment Plants & Pumping Stations
Improve Water Treatment Tlant at KK Nagar
Implement Water Metering
Comprehensive Water Supply Devel. Plan for CUA
Water Quality Studies and Monitoring
GIS Mapping for Various Water Supply Zones
Energy Audit Studies
SCADA Arrangement & Automation
Desalination Plants
X
X
X
X
X
X
X
X
X
X
X
X
Sub-Total
Sanitation
Construction of Additional STP at Perungudi

Rehabiltation of Existing Sewers
Rehabiltation of Pumping Stations and Automation
Construction of Additional STP at Nesapakkam
Energy Audit of Pumping Stations
Comprehensive Sewerage Development Plan for CUA
X
X
X
X
X
Sub-Total
Main Report
155
X
X
X
X
X
X
On-going
On-going
Optimise utilisation & revenue
Prepare for future activities
On-going
On-going
Optimum utilisation
Improve operations and optimisation
On-going
Improve operations
CMA
Component
Volume 1
Sector
Transportation
Project
Category
Optimise
Upgrade
Link of OMR to ECR at Palavakkam

New Avadi Road/Medavakkam Tank Road
New
X
Study
Under
Implem.
Cost
Million
Rupees
300.00
50.00
Major Flyovers
Madhya Kailash junction
LB Road junction at Thiruvanmiyur
Anna Salai x Blackers Road junction,
Anna Salai x General Patters Road
Anna Salai x Binnys Road
Anna Salai x Eldams Road
Cenatoph Road junction
At Perambur crossing rail line
Anna Salai X Sardar Patel Road
Periyar EVR Salai X Nelson Manickam
Periyar EVR Salai x Anna Nagar III Ave.
IRR x Anna Nagar II Ave
IRR x Arcot Road
GNT Road X Madhavaram High Road
Mount Poonamallee Rd x Kundrathur Rd
Taramani Link x M.B.I.Road
M.P.road x Poonamallee Kundrathur Rd
Madipakkam Rd x Pallavaram Rd
Anderson Rd Medavakkam Tank Road
At Anna Nagar Round about
New Avadi Road x Kilpauk Garden Road
Mini Flyover
Optimization Gap Projects
Nungam. High rd (From Beach to NH-4)
Greenways Road/Sardar Patel rd (From Santhome ChurchGST rd)
Kodambakkam High Rd. (Gemini - IRR)
ECR (From Thiruvanmiyur to Kottivakam)
Velachery Main Rd (OMR - GST rd)
Mint St.(From Central to Thiruvottiyur)
IRR Restoration (Kathipara-CMBT)
Main Report
156
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
1,500.00
300.00
1,250.00
820.00
750.00
220.00
199.00
510.00
300.00
300.00
320.00
300.00
300.00
428.00
284.00
600.00
600.00
600.00
300.00
300.00
150.00
1,260.00
250.00
X
X
X
X
X
X
300.00
300.00
150.00
250.00
150.00
150.00
Phase
Remarks
CMA
Component
Sector
Volume 1
Project
Category
Optimise
Upgrade
New
Study
Under
Implem.
Cost
Million
Rupees
Phase
Cycle track
Gandhi Nagar neighbourhood
Under MRTS at Certain Segment
X
X
10.00
20.00
1,300.00
150.00
Missing Links
From Prop.elevated Adyar rd to OMR
Railway station improvement

City Wide Railway Station Improvements
BRTS
BRTS study for North Chennai
20.00
X
X
X
X
10.00
10.00
10.00
10.00
Standards and Guidelines

Standards and guidelines for transit node
Standards and guidelines for roadway
Guidelines for peds/cycle path
Land Development Manual for CMA
Bus terminus Relocation

Mandaiveli bus terminus relocation
Adyar bus terminus relocation
Thiruvanmyur bus terminus relocation
X
X
X
500.00
500.00
500.00
16,531.00
Sub-Total
Slum Upgrading
Basic Urban Services Upgrade existing in-situ slums
X
X
X
Re-locate objectionable location dwellers

Further upgradation of already developed slums
Sub-Total
Main Report
157
X
X
X
X
2,261.80
3,545.70
8,999.00
14,806.50
S-M-L
S-M
S
Remarks
CMA
Sector
Component
Volume 1
Project
Category
Optimise
Upgrade
New
Study
Under
Implem.
Cost
Million
Rupees
Phase
Remarks
Municipalities
Water Supply
Water Supply Facilities to Tambaram

Water Supply Facilities to Ambattur
Water Supply Facilities to Avadi
Water Supply Facilities to Alandur
Water Supply Facilities to Maduravoil
Water Supply Facilities to Thiruvottiyur
Water Supply Facilities to Ullagaram- Puzhutivakkam
Water Supply Facilities to Pallavaram
Water Supply Facilities to Thiruverkadu
Sub-Total
Sanitation
Sewerage to Manali
Sewerage to Poonamalee
Sewerage to Ambattur
Sewerage to Avadi
Sewerage to Maduravoil
Sewerage to Ullagaram- Puzhutivakkam
Sewerage to Tambaram
Sewerage to Pallavaram
Sewerage to Thiruverkadu
Sewerage to Pammal
Sewerage to Kathivakkam
Sewerage to Madhavaram
Sewerage to Anakaputhur
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Sub-Total
Slum Upgrading
Upgrade existing in-situ slums
Basic Urban Services Re-locate objectionable location dwellers
X
X
Sub-Total
Main Report
158
X
X
806.16
3,350.00
1,300.00
730.00
280.00
1,020.00
280.00
720.00
644.00
9,130.16
S
S
S
S
S
S
S
M-L
M-L
Priority Urban Area and On-going

On-going
On-going
On-going
Low Priority
Low Priority
552.00
750.00
1,700.00
1,800.00
630.00
365.00
3,488.00
417.00
444.00
570.00
390.00
150.00
360.00
11,616.00
S
S
S
S
S
S
S
M-L
M-L
M
M
M
M
Priority Urban Area

Priority Urban Area
On-going
On-going
Low Priority
Low Priority
Low Priority
Low Priority
Low Priority
Low Priority
692.80
3,327.00
4,019.80
S-M
S-M
Volume 1
CMA
Sector
Component
Project
Towns Panchayats
Not major focus of CDP.
Category
Optimise
Upgrade
New
Water Supply
Summary estimate.
Sanitation
Summary estimate
X
X
Slum Upgrading
Upgrade existing in-situ slums
Basic Urban Services Re-locate objectionable location dwellers
Study
Under
Implem.
Summary estimate.
Sanitation
Summary estimate
See Water Sector for Details
4,770.00
S-M
Upgrading underway in most Towns.
X
X
351.20
1,306.20
1,657.40
S-M
S-M
Main Report
159
906.00
X
Remarks
S-M
Not specifically addressed in CDP
Water Supply
Phase
3,050.00
Sub-Total
Village Panchayats
Cost
Million
Rupees
2,088.00
Volume 1
Part F: Summary Investment and Implementation Plan

This section presents a consolidated summary of investment requirements for each sector discussed
above. It places the total needs within the context of overall financial capacity of Chennai and sets out
proposals for an Implementation Strategy. Separately prepared Communication and Marketing
Strategies further support implementation.
35 Investment Financing
The total investment requirement for infrastructure development within CMA is approximately
Rs. 236,402.61 million:
State Government / ULB share of JNNURM (65% for UIG component and 50% for BSUP
component) is Rs. 36,308.50 million;
Additional cost to complete the on-going JNNURM projects because of time and cost
escalation and for providing additional infrastructure to augment the on-going projects to
be borne by the State Government / ULB is Rs. 6,886.34 million;
Cost of New Projects- Other than approved under JNNURM is Rs. 171,182.27 million;
Funds available under JNNURM are not sufficient to meet the growing needs of infrastructure
development. The CDP 2009 recommends a number of alternative methods of financing, each
with advantages and limitations. The implementing agencies i.e. CoC, CMWSSB, other
municipalities, and other GoTN agencies must ensure proper financial management to select
the right mix of each source, thus ensuring maximum financial advantage and mitigating risks.
Table 53 summarises the infrastructure investment plan and indication of potential funding sources for
each component of the CMA and each infrastructure sector.
Main Report
161
Volume 1
Table 53: Investment and Funding Summary

JNNURM Approved Projects
CMA
Component
Sector

Institutional Devel.
Studies & Training
Projects
Studies
Projects
Intgrtd Devlp/ Renewal
Studies
Projects
Transportation
Projects
Waterways Mgmt
Sanctioned
Cost
JNNURM Projects - approved

share
JNNURM
Additional Cost
to complete
State
Possible Cost GoI share
(State
govt/ULB
to complete (35% or 50%)
Govt/ULB)
(65% or 50%)
Other
Assisted
Projects
(Funding
Identified)
Main Report
11
58,090.27
58,090.27
225.00
225.00
-
5.00
-
5.00
-
8.00
-
8.00
-
12,420.00
12,420.00
4,000.00
2,900.00
160.00
4,000.00
2,900.00
160.00
31,820.00
6,552.27
31,820.00
6,552.27
81,579.00
123,207.44
Storm Water Drainage in ULBs

within CMA except CoC
SWM (For all Clusters)
Water Ways Mgmt.

Solid Waste Mgmt.
Studies
Projects
Water Supply
Studies
Projects
Sanitation
Studies
Projects
Transportation
Projects
Slum Upgrading
Studies
Projects
10
River Rehabilitation - Cooum

River Rehabilitation - Adyar *
River Rehabi, - Kosasthalayar
Water Ways Mgmt.
Possible Funding Source

New ProjectsTotal Investment
Other than
Internal
requirement
State Govt approved
Accruals of
(6+7+9)
Budgetary
under JNNURM
Implementing
Support
Agencies
42,758.00
44,295.34
16,573.90
26,184.10
1,537.34
14,479.04
14,479.04
5,067.66
9,411.38
9,411.38
2,995.30
2,995.30
1,048.36
1,946.95
1,946.95
12,902.00
14,053.00
4,515.70
8,386.30
1,151.00
360.00
49,630.00
360.00
59,167.30
830.00
965.00
290.50
539.50
135.00
130.00
1,200.00
130.00
1,874.50
827.66
1,079.00
289.68
537.98
251.34
15,452.00
16,241.32
10,724.00
10,724.00
5,362.00
5,362.00
14,807.00
34,076.00
13,907.00
13,907.00
162
12
GoI
Support
13
GoI
Indian Financial
Commercial
Schemes Institutions (Urban Bi- lateral Multi-lateral
Borrowings /
(including
Development
Funding
Funding
Issue of Bonds
JNNURM)
Financing)
14
15
16
17
Separate Funding sources recommended for each cluster - refer PFS report
18
PSP
19
Volume 1
JNNURM Approved
Projects
CMA
Component
Sector
Municipalities
Water Supply
Studies
Projects
Sanitation
Studies
Projects
Slum Upgrading
Studies
Projects
Towns Panchayats
Water Supply
Studies
Projects
Sanitation
Studies
Projects
Slum Upgrading
Studies
Projects
Village Panchayats
Water Supply
Studies
Projects
Sanitation
Studies
Projects
Total
Sanctioned
Cost
JNNURM Projects approved share
Possible
Cost to
complete
GoI share
(35% or 50%)
5
State
govt/ULB
(65% or 50%)
6
JNNURM
Additional
Cost to
complete
(State
Govt/ULB)
11,361.00
15,749.00
3,976.35
7,384.65
4,388.00
6,006.00
7,766.00
2,102.10
3,903.90
5,355.00
7,983.00
1,874.25
3,480.75
Possible Funding Source

Other
New ProjectsTotal
Assisted
Other than
Indian Financial
Investment
Internal
GoI
Commercial
Projects
approved
State
Govt
Institutions
Multirequirement Accruals of
GoI
Schemes
Bi- lateral
Borrowings /
(Funding
under
Budgetary
(Urban
lateral
(6+7+9)
Implementing
Support (including
Funding
Issue of
Identified)
JNNURM
Support
Development
Funding
Agencies
JNNURM)
Bonds
Financing)
8
9
10
11
12
13
14
15
16
17
18
9,017.00
20,789.65
1,760.00
1,364.00
7,027.90
2,628.00
3,633.00
9,741.75
4,020.00
4,020.00
5,801.00
9,362.95
4,023.00
4,970.00
1,408.05
2,614.95
947.00
541.00
700.00
189.35
351.65
159.00
2,349.00
2,859.65
3,482.00
4,270.00
1,218.70
2,263.30
788.00
1,795.00
4,846.30
1,657.00
1,657.00
2,788.00
2,926.80
700.00
838.80
2,088.00
2,088.00
157,275.27
214,377.11
192.00
206.00
67.20
124.80
14.00
192.00
206.00
67.20
124.80
14.00
58,334.00
65,220.34
22,025.50
36,308.50
6,886.34
13,907.00
* If without river front development, then the project cost would be Rs. 2,150 million and total requirement would reduce by Rs.750 million
Main Report
163
PSP
19
Volume 1
35.1 Financing Issues

The major concerns in urban infrastructure financing seen in all implementing agencies are:
Insufficient financial and managerial resources with Urban Local Bodies/parastatals/

utilities
Institutional delinquencies and high administrative overheads;
Inadequate coverage and service level;
Low quality of service and lack of consumer orientation
High non-revenue component
Wastage
Pilferage
Unaccounted-for losses
Free riders and rebates
Inefficient operation and maintenance
Poor monitoring and cost recovery
Unsustainable resource management practices
High capital and maintenance costs
35.2 Potential Financing Sources

1.
Internal Accruals of Implementing Agencies

This is the most important source for infrastructure financing, which has the least
encumbrance on any municipal assets, and there is no cost for sourcing this finance.
However, internal accruals are not always buoyant. Internal accruals can assist in taking
up projects of smaller value and projects which are less revenue generating. The possible
ways to generate internal accruals are:
Improvements in property tax and other tax assessment procedure, removal of

exemptions and improved collection efficiency carry out multi-purpose household
survey to identify and bring under tax net unassessed and under assessed properties;
Annual revision in user charges to ensure full cost recovery of all municipal services in
medium term also use innovative methods for recovery of charges following indirect
recovery method such as betterment levy, development charges, entry fees etc;
Improving the collection mechanism of user charges and if possible entering into
agreements with third party service providers of inelastic services like electricity
distributing companies to allow them to collect the service charges on behalf of ULBs to
recover cost of public lighting;
Levying land development charges, wherever applicable to finance low-cot housing for
urban poor settlements;
Controlling expenditures through better internal control and initiating cost-efficiency
measures like energy audits, use of vehicle pools for travel, use of alternative energy
sources, etc;
Pooling of funds under MP/MLA Local Area Development schemes and pooling funds
under other untied schemes for infrastructure development.
2.
State Govt - Budgetary Support

Assigned revenues from state governments is an important source of infrastructure
financing. There would be no encumbrance, however, the quantum and timing of the flow
of assigned revenue is uncertain. Hence, infrastructure planning based on the assigned
revenues is difficult. However, the ULBs can earmark a portion of the assigned revenues
and then utilize the earmarked fund for specific purposes. In addition, state governments
can levy additional cess on consumption of electricity or fuel and finance development and
O&M of infrastructure like roads and roads furniture, streetlights, etc.
Main Report
164
3.
Volume 1
GoI Support
Government of India support out of the various central finance commissions, schemes like
JNNURM, SJSRY, SSA, are vital to finance basic infrastructure of the city. ULBs can
claim higher share of user charges from GoI units like Railways, Airports Authority for
using the civic infrastructure. GoIs support through schemes like that of JNNURM would
boost the infrastructure development.
4.
Indian Financial Institutions (Urban Development Financing)

There are various Indian financial institutions engaged in urban development financing.
ULBs can enter into agreements with them for financial support. The various agencies
providing finance in India are TNUIFSL, HUDCO, IL&FS, LIC, and other development
banks. Various studies can be undertaken using specific funds earmarked for such
technical assistance. Main ULBs may also consider restructuring of existing debts with
cheaper interest rate and phased repayment.
5.
Bi- lateral Funding

Access to bi-lateral funding agencies can come from agencies like, KfW, SIDA, CIDA,
GTZ, JBIC, Department for International Development, UK (DfID) etc. ULBs can request
the GoI for accessing such funds. These agencies provide grant and loan funding for
taking up various studies and for capital-intensive projects.
6.
Multi-lateral Funding
Access multi-lateral funding route to finance the capital-intensive projects and for projects,
which provide a steady flow of income. The future income flow would assist in paying the
multi-lateral loans. Multi-lateral agencies include the Asian Development Bank and the
World Bank.
7.
Commercial Borrowings/Issue of Bonds

Commercial borrowings include accepting loans from various commercial banks at
competitive rates of interest. This route also includes issue of tax-free municipal bonds. In
addition, ULBs can try conversion of future cash receivables into financial or debt
instruments tradable in capital market, issue of Quasi Equity Instrument with Flexible
maturity and payment terms where interest rates could be higher than normal loan with
longer tenor. ULBs can also seek Foreign Direct Investment (FDI) where possible through
Financial Collaborations, Joint Ventures / Technical Collaborations, Capital Markets via
Global Depository Receipts (GDRs / Euro issues), Private Placements, or Preferential
Allotments for those sectors, where there is possibility of steady income flow.
8.

Private sectors would be interested in investing in those sectors, where there would be
mutual interest of revenue earning for the private player. Usually, private players would
not be keen to invest in sectors, which are not revenue generating from them. Private
players can be invited to beautify specific zones of the city, where from they can earn
revenue from advertisement rights. They can assist in O&M activities of municipal assets
where there can be congenial share of use of the municipal asset like municipal schools,
hospitals, parks and squares, community halls, riverfronts, lakes and water bodies, traffic
islands and medians.
36 Implementation Capacity
Table 54 provides a summary indication of a number of Implementation considerations and assessed
capacities of key Implementing Agencies to undertake related projects.
Main Report
165
Volume 1
Table 54: Implementation Capacity

Key Implementing Agencies and Service Sectors
CoC
CMWSSB
within CMA
Other ULBs
within CMA
TNSCB
(Roads, SWM,
Drainage, Street
Lights)
(Water Supply,
Sewerage &
Sanitation)
(Roads, SWM,
Drainage,
Street Lights)
Basic
Services for
Urban Poor
Roads Weak
SWM Strong
Drains Strong
Strong
Very Strong
Very Strong
Parameters
Demand-Supply mismatch of
infrastructure requirement
Street Lights Medium

Financial Capacity Internal
Accruals to Finance Infrastr.
Medium
Weak
Very Weak
Very Weak
Financial Capacity To Borrow

From Markets
Strong
Medium
Weak
Very Weak
Institutional Framework To
Adopt Reform Measures
Medium
Medium
Weak
Average
Legislative Framework To
Enforce Reform Measures
Weak
Strong
Weak
Average
Medium
Medium
Weak
Weak
Very Strong
Very Strong
Very Strong
Very Strong
Weak
Weak
Weak
Weak
Capacity and Skills Available to

Implement New Projects
Requirement for Capacity Building
Political Will to Initiate
Development
37 Monitoring and Evaluation

On-going sustainable development with efficient resource utilisation requires the development of
comprehensive monitoring and evaluation programmes to ensure investments and projects are carried
through the full project-cycle (Figure 3) allowing later stages to benefit from the experience of earlier
ones. Institutional structuring, reform and capacity building must include provision for this component
as discussed in Section 16.
38 Communication & Marketing Strategy

A comprehensive communication and marketing strategy that would integrate the marketing goals,
policies, and action sequences (tactics) into a cohesive whole, which primarily concerns reaching out
10
to prospective investors has been suggested . The objective of the marketing strategy would be to
provide a foundation from which these agencies can develop a tactical plan. The communications
strategy would act as a guide to communicate with stakeholders both externally and internally.
10
See Marketing & Communications Strategy and Plan.
Main Report
166
Volume 1
Volume 2: Stakeholder Participation

Part 1:
SMP Workshop
Part 2:
CDP Stakeholder Participation Events
Volume 3: Technical Annexes

Annex 1:
The Residents of the CMA - Demographic Profile
Annex 2:
The Economy
Annex 3:
JNNURM Funding and Reforms
Annex 4:
Annex 5:
Water Supply
Annex 6:
Sewerage and Sanitation
Annex 7:
Shelter
Annex 8:
Basic Services for the Urban Poor
Annex 9:
Heritage Resources
Volume 4: Financial Annexes

Annex 1:
Annex 2:
Waterways Management
Annex 3:
Chennai Metro Water Supply & Sewerage Board
Volume 5: Institutional Development and Capacity Building
Main Report
167

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