Questions raised over Tamil Nadu’s move to merge peri-urban panchayats with municipal corporations

The Tamil Nadu government’s proposal to merge 111 peri-urban panchayats with neighbouring municipal corporations has raised the question of the need for such a move, when the government is implementing a scheme of financial assistance for these peri-urban panchayats. 

The Tamil Nadu government’s proposal to merge 111 peri-urban panchayats with neighbouring municipal corporations has raised the question of the need for such a move, when the government is implementing a scheme of financial assistance for these peri-urban panchayats. 

The government earmarks ₹69 crore annually for 690 peri-urban panchayats at a rate of ₹10 lakh per panchayat, according to a Government Order issued in August 2023. As an additional measure, this is being done out of the Operation and Maintenance Deficit Grant Fund to strike a “balanced and sustainable development” of the panchayats. According to the Sixth State Finance Commission, peri-urban panchayats are those village panchayats that are located within a five-kilometre radius of urban local bodies. 

In the assessment of the authorities, such peri-urban panchayats, while experiencing the features of urbanisation in the form of exponential increase in population growth and density, come under stress with regard to financial resources, institutional capacity, and technical expertise. They also face special issues on liquid and solid waste management.

It is to address this aspect partially that the allocation out of the Deficit Grant Fund has been conceived. Besides this, the State government, last year, sanctioned ₹390 crore for improving 2,550 roads, streets, and lanes for a length of 709 km.

These peri-urban panchayats are among 149 village panchayats, which are expected to be brought under the jurisdiction of 16 municipal corporations. Some of the municipal corporations, identified for the absorption of the peri-urban panchayats, are: Greater Chennai Corporation (which will get two such panchayats); Madurai (five); Coimbatore (six); Salem and Sivakasi (nine each); Cuddalore (12), and Avadi, Tiruchi, and Thoothukudi (14 each).

Explaining the rationale behind the proposed merger, a senior official in the government says there is a perception that a sum of ₹10 lakh is inadequate for peri-urban panchayats to tackle the enormous load caused by urbanisation. If these areas come under the jurisdiction of the neighbouring municipal corporations, they will benefit under development schemes and plans of bigger urban local bodies and entities like the Chennai Metrowater.