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Chandigarh admn releases ₹25 crore for fund-starved MC

The payment brought major respite for the civic body that was on August 30 forced to stall tenders for development projects till at least December after it ring-fenced 282 crore from its funds for city’s waste management on the orders of the National Green Tribunal

Updated on: Sep 29, 2023, 08:28:01 IST
By , Chandigarh
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Coming to the aid of cash-strapped Chandigarh municipal corporation, the UT administration on Thursday released 25 crore of grant-in-aid ahead of schedule to allow city’s development works to continue.

The funds came from the  ₹135-crore third instalment due in December 2023. (HT Photo)
The funds came from the ₹135-crore third instalment due in December 2023. (HT Photo)

The funds came from the 135-crore third instalment due in December 2023.

The payment brought major respite for the civic body that was on August 30 forced to stall tenders for development projects till at least December after it ring-fenced 282 crore from its funds for city’s waste management on the orders of the National Green Tribunal (NGT).

The order, issued by MC commissioner Anindita Mitra, had meant that MC will not initiate even the approved development-related projects, at least till December, including those of road carpeting, paver blocks, back lanes and renovation or upgrade of community centres and toilets. The order came at a critical stage when the BJP-run Chandigarh MC is bracing for the Lok Sabha polls next year.

Following the orders, mayor Anup Gupta had met UT administrator Banwarilal Purohit for more funds so that city’s development would not suffer.

For the financial year 2023-24, Chandigarh MC has an allocated budget of 1,886.30 crore. Chandigarh administration had earmarked a grant-in-aid of 555 crore for this financial year and out of this, MC has already received 310 crore up to second quarter.

The mayor expressed his gratitude to UT administrator Banwarilal Purohit for releasing 25 crore in advance. “Now, MC will restart tender allotments for development works.”

Mitra said on receipt of the funds, the administrative order for not issuing fresh tenders had been withdrawn with immediate affect.