The government has sanctioned Rs. 500 crore for corporations, excluding Chennai, and municipalities, besides Rs 250 crore for town panchayats to carry out works under integrated urban development programmes.

According to an official press release, the funds have been allocated for this fiscal following a similar amount of Rs. 757 crore sanctioned last financial year for urban local bodies. This year, besides the sanctioned sum the urban local bodies will continue to implement schemes taken up with financial aid from Japan and Germany and under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). In the first phase, the government has granted administrative sanction for Rs. 166.38 crore to take up underground drainage works in the five town panchayats of Chengam, Pennadam, Perundurai, Velankanni and Palanichettipatti.

As there was a dearth of qualified manpower in urban local bodies, the government has also ordered filling of 1,802 posts in corporations to improve quality of life in urban environs of the State.