MCD seeks over Rs 3,500 cr from Delhi Govt | business | Hindustan Times
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MCD seeks over Rs 3,500 cr from Delhi Govt

business Updated: Jul 22, 2010 20:08 IST

The cash-strapped MCD today demanded about Rs 3,539 crore in grant and Rs 1,000 crore in loan from the Delhi government for paying salaries and arrears to employees and under other heads.

"The Municipal Commissioner has sent a note to Delhi Finance Secretary in this regard. We have sought time from Finance Minister A K Walia and will meet him when he gives us an appointment," Leader of MCD Subhash Arya said.

He said the MCD is demanding Rs 1,254 crore, the shortfall in its property tax recovery from last fiscal, other than Rs 1,080 crore as one-time grant for paying the arrears of Sixth Pay Commission to its employees.

"We have also sought Rs 600 crore under education head.

We demanded Rs 922 crore under Plan Head of which only Rs 317 crore has been given. We are now requesting them to grant the rest Rs 605 crore too," he said.

The BJP leader also said that the MCD will seek Rs 1,000 crore in loan for paying salaries to workers.

The MCD is struggling to pay salaries to its workers and is yet to release most of the arrears of Sixth Pay Commission.

The municipal contractors are also on a tool-down strike maintaining that their dues were pending for 18 months.

MCD officials said a lot of money is being used on projects related to the Commonwealth Games.

For projects that are directly linked to the Games, the MCD is getting funds from the Delhi and Central governments but there are a number of projects that are not directly linked to the sporting event but which the civic body is executing using its own money, they said.

The civic agency has mainly one source of revenue, money collected through property tax which the officials claim had been below target.