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Chandigarh MC expecting full grant next week
The cash-strapped Chandigarh MC has not floated any new tender for new developmental work projects this month
The Chandigarh municipal corporation (MC), which is witnessing acute financial crisis, is expected to receive its full grant-in-aid from UT administration next week, city mayor Kuldeep Kumar Dhalor said on Monday.
“I had sent a letter to UT adviser to give us additional grant of ₹200 crore. I am regularly taking up the matter with the UT administration and MC commissioner,” Dhalor said, adding that the union budget will also be presented in the Parliament and the funds will be released soon.
The cash-strapped MC has not floated any new tender for new developmental work projects this month.
All developmental projects, including those approved in Finance and Contract Committee (F&CC) and General House of the civic body- recarpeting of roads, laying of paver blocks, renovation or upgrade of community centres, beautification of market areas, toilets and cremation grounds, or horticulture-related projects have been stalled due to financial crisis. Not only this, the civic body is also struggling to clear pending bills of contractual works. Bills amounting upwards of ₹10 crore are lying pending for clearance in the MC’s account branch alone.
The civic body is only able to pay monthly liability, including salaries and funds required for water supply and sewerage management, which run up to ₹60 crore per month.
The MC relies on funds from the UT administration as well as revenue sources for its annual income. For the financial year 2024-25, the UT administration has allocated a grant-in-aid of only ₹560 crore to the corporation, a sharp cut from the demand of ₹1,651 crore. Given the annual committed liabilities, which alone are around ₹500 crore, now, the civic body is focusing on increasing its revenue to meet the shortfall of funds to maintain essential civic services, including roads, water supply, waste disposal and sewerage, but is struggling to do so at present.
The MC is left with only about ₹32 crore in its coffers and is yet to clear salaries of all the outsourced employees. It also has bills pending worth crores of rupees.
