Chandigarh MC continues to keep civic projects on standby amid cash crunch
These projects include re-carpeting of roads, laying of paver blocks, renovation and upgrading of community centres, beautification of markets, improvements to public toilets and cremation grounds, and horticulture-related projects
Struggling with a financial crisis for the past four months, the Chandigarh municipal corporation (MC) has continued the stoppage of new developmental projects. Though, the annual grant-in-aid from UT administration is being released from time to time, the funds, however, are insufficient to initiate new projects.
With no new tenders being floated since May this year, the city’s growth has come to a standstill, impacting several essential infrastructure projects.
All development-related works, including those already approved by the Finance and Contract Committee (F&CC) and the General House of the MC, have been stalled. This includes re-carpeting of roads, laying of paver blocks, renovation and upgrading of community centres, beautification of markets, improvements to public toilets and cremation grounds, and horticulture-related projects. The halt in these projects is a direct result of the civic body’s deteriorating financial condition.
“We are receiving grant-in-aid but we are only able to pay our liabilities, including salaries and funds required for water supply and sewerage management, which run up to ₹60 crore per month. Since May, new projects are being approved but no fresh tender has been floated to initiate them. The reason behind this is that the corporation is unable to generate more revenue on its own amid limited help from the UT administration and central government,” said officials from MC accounts department.
The Chandigarh MC relies on funds from the UT administration as well as its own revenue sources for its annual income. For the financial year 2024-25, the administration has allocated a grant-in-aid of only ₹560 crore to the civic body, a sharp cut from the demand of ₹1,651 crore.
Last week, city mayor Kuldeep Kumar Dhalor had also met UT administrator Gulab Chand Kataria and apprised him of Chandigarh MC’s financial crises, seeking an additional grant of ₹200 crore.
Dhalor told the administrator that MC’s total revenue for the financial year 2023-2024, inclusive of ₹560 crore received from the administration as grant-in-aid, was ₹1,042 crore.
On the other hand, the corporation’s expenditure during the financial year was ₹1,143 crore. The difference between receipt and expenditure is short of ₹100 crore approximately.
“We try to start all emergency projects to ensure that development in the city is not halted. But, we will need extra funds to ensure smooth working of the MC. We have requested an additional grant of ₹200 crore from UT administration and we are hopeful of receiving some help from them,” said mayor Dhalor.