PALONCHA  municipality
The Paloncha Municipality has been constituted during the year 1987 duly merging the 33 tribal villages within a distance of 6 to 7 Kms. abolishing the Paloncha Gram Panchayat. The municipality was constituted as 3rd grade municipality. The Paloncha Municipality was upgraded to 2nd grade during the year 2001. This municipality has large scale industries like Navabharath Ferro Alloyes, Sponge Iron India Limited, Kothagudem Thermal Power Station etc., It is situated on Kothagudem, Bhadrachalam highway. The total income is Rs.3.12 crores including taxes, non-taxes and other receipts.

Area of municipality 26.38 Sq Kms.
Total wards 24 Nos.
Population as per 2001 census 68,561
Slums 33
CC roads 25 Kms.
BT roads 15 Kms.
Metal roads 12 Kms.
Gravel roads 13 Kms.
Pucca drains 82 Kms.
Kutcha drains 85 Kms.
Tap connections (House services) 1895 Nos.
Bore wells 460 Nos.
ISLs 6,528 Nos.
Deepam connections 2,335 Nos.
Total T & Cs groups 302 groups
 
Water supply

The main source of water supply depends upon Murreduvagu. There are (3) pump houses functioning; one at Old Paloncha and (2) at Sreenivsa colony. At present 5.27 MLD water is being supplied to the town from all sources. In addition to this 13 Mini-water supply schemes are in working and the quantity of water is 0.70 MLD. An action plan costing Rs.50.00 lakhs for improving water supply submitted to Govt.
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