BMC plans loan for scheme share
IN ORDER to arrange its share for various schemes, the Bhopal Municipal Corporation (BMC) administration is planning to borrow huge loan from the Housing and Urban Development Corporation (HUDCO). The BMC administration would soon seek the permission from the state government.india Updated: May 02, 2006 22:02 IST
IN ORDER to arrange its share for various schemes, the Bhopal Municipal Corporation (BMC) administration is planning to borrow huge loan from the Housing and Urban Development Corporation (HUDCO). The BMC administration would soon seek the permission from the state government.
Sources said that the BMC administration has been worried over the arrangements of its share for Rs 2153 crore Jawaharlal Nehru National Urban Renewal Mission (JNNURM). The BMC will receive 50 per cent of total cost as grant from the Union government, while the state government will provide grant equivalent to 20 per cent of cost.
However, the BMC will have to arrange the remaining amount of 30 per cent as its share for these schemes. For the schemes worth Rs 2153 crore, the BMC share would be about Rs 645 crore. This share will have to be arranged during next five years. The BMC has already got sanctioned works worth Rs 90 crore under the JNNURM.
The earnings of the BMC are lesser than its different expenditures. The BMC is forced to spend most of its earnings on water supply alone. The earning through water tariff is only about Rs 12 crore against the expenditure of about Rs 40-42 crore on water supply. Similarly, sizeable amount is being spent on sanitation and establishment.
Besides the corporators are also allocated half of the property tax amount collected from their respective wards besides Rs five lakh each as corporator’s fund.
On the other hand, the BMC could collect the revenue between Rs 36-46 crore through various taxes including water tax and property tax. Besides, the state government also provides about Rs 20-22 crore as the compensation amount for various abolished taxes. The BMC collected an amount of Rs 46 crore during 2005-06.
This amount also included the old dues. In this situation, the BMC has no extra funds to arrange its share for the JNNURM. Considering this fact, the BMC administration is planning to obtain loan from the HUDCO to arrange this fund. The BMC officials said that they would soon seek permission of the state government in this regard.