Civic body seeks state govt's guarantee for Rs 105 cr HUDCO loan
Struggling to improve its poor financial condition, the Ludhiana municipal corporation (MC) sought guarantee from the state government for a loan of `105 crore from the Housing and Urban Development Corporation (Hudco) Limited. The loan amount will be used for development works in 75 wards of the city.punjab Updated: Mar 22, 2015 10:18 IST
Struggling to improve its poor financial condition, the Ludhiana municipal corporation (MC) sought guarantee from the state government for a loan of Rs 105 crore from the Housing and Urban Development Corporation (Hudco) Limited. The loan amount will be used for development works in 75 wards of the city.
Earlier, the state government had given its guarantee when the MC had applied for a loan of `105 crore for an another project from Hudco. But later, the MC House had decided that the loan should be used for development works in the wards.
Broken roads, choked sewerage and parks in poor condition are crying for the MC's attention and other development projects are still pending. The development work has come to a halt in the city due to financial crunch.
Additional commissioner Ghanshyam Thori said, "We are hopeful that the government will give the guarantee for the loan, following which the development work will begin again. We are also considering generation of more revenue from other sources of income."
It was also learnt that the MC is making efforts to sell the shop-cum-offices near Keys Hotel near the Pakhowal Road after completing the pending work at the earliest to improve its financial condition.
While the MC is making efforts to get the loan, the councillors want the MC to increase its sources of income. "The development work will resume in the city with approval of the loan, but the MC should not depend on just the loan as it has to be returned too. There is a need to find out other solutions to improve the financial condition of the civic body," said councillor of ward number 18 Inder Agarwal.
Councillor of war number 55 Balkar Singh said, "The government collects around `60-70 crore VAT from the city, but it gave `30 crore to the MC. The government should give more share of the collected VAT amount. The loan is a solution for current time, but how the MC will manage after using the loan amount."