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HindustanTimes Wed,16 Apr 2014

Govt refuses to give funds to civic bodies

HT Correspondent, Hindustan Times  New Delhi, February 12, 2013
First Published: 23:00 IST(12/2/2013) | Last Updated: 23:02 IST(12/2/2013)

The three municipal corporations in the city will have a tough year ahead as the Delhi government has refused to release Rs. 600 crore promised for their upkeep after trifurcation last year.

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Before the trifurcation, the Delhi government had decided to release Rs. 1,831 crore as financial assistance to the three newly-created municipal corporations of the Capital. The package included a Rs. 600 crore package for repaying debts owed to various institutions by the unified MCD.

The commissioner of the East Corporation SS Yadav, however, said that the amount will not be released. "The Delhi government has informed the three corporations that the government will be releasing Rs. 600 crore less from the promised amount because the corporations will be getting Rs. 600 crore as rent from the income tax department that has rented parts of the civic centre," he said.

"The three corporations are already facing financial problems. With the Delhi government refusing to give the money either as grants or as loan, the whole budget will have to be adjusted," said a senior official.

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