24x7 water supply project: PMC may put ₹200 crore in FD
Following the cancellation of tenders, the 24x7 water scheme now stands postponed by at least four monthspune Updated: Aug 06, 2017 15:34 IST
Pune Municipal Corporation (PMC) is likely to deposit the Rs.200 crore received through municipal bonds into fixed deposits as the tenders for the 24x7 water supply scheme has now been scrapped.
Following the cancellation of the tenders by municipal commissioner Kunal Kumar, the 24x7 water scheme now stands postponed by at least four months. The municipal administration has, therefore, decided to put the Rs.200 crore, which were raised through municipal bonds, into fixed deposits.
PMC was the first municipal corporation in the country to issue municipal bonds for a mega project to be executed by the municipal corporation. Prime Minister Narendra Modi and union urban development minister Venkaiah Naidu appreciated the municipal corporation’s efforts to raise funds through municipal bonds.
PMC received the Rs.200 crore through municipal bonds. Now, as the scheme got postponed, it will put an additional burden on the civic body to pay 7% interest on it.
Speaking to journalists, municipal commissioner Kunal Kumar said that keeping this amount in fixed deposits is one option as it will help bring down the interest rate and the civic body will need to bear only the difference between fixed deposit interest and loan interest.
Opposition party leader Chetan Tupe also wrote a letter to the municipal commissioner and requested them to make a fixed deposit account immediately to bring down the financial burden. Civic activist Vivek Velenkar and Vishwas Sahastrabuddhe demanded recovery of the interest from the municipal officers and elected members as they took loan before starting the scheme.