Development works worth more than ₹380 crore -- planned and ongoing -- may get stalled, with the municipal corporation struggling to source funds for them.
The fund-starved MC had recently assessed its capacity to undertake the works spread over this year and the findings don’t promise a bright road ahead. As per a report compiled by the UT engineering department, on the directions of former MC commissioner KK Yadav, liabilities of around ₹380 crore stand for the department if it is to implement different development projects in the city.
Projects that are likely to be impacted include all the capital works, village and ward development works, and extended road recarpeting works.
The village development works include new roads, laying stormwater pipes and sewer lines, electrical and horticulture works, supply of water and installing more than 1,000 tube-wells for improving water supply.
“Except for the dedicated funds for road recarpeting and deposit works (expansion of the water storage capacity at water works), the MC is likely to face severe fund crunch to start or complete other development projects. Every month, MC has fixed liabilities of around ₹62 crore for salaries alone,” said an MC official who didn’t want to be named.
There is also concern that the administration will release reduced quarterly grant-in-aid to the MC as the Union government had imposed a 20% restriction on spending.
The MC had started the current fiscal with a deficit of ₹670 crore. Against a budget of ₹1,641 crore for 2021-22, the civic body had estimated only ₹971 crore in its kitty.
{{/usCountry}}The MC had started the current fiscal with a deficit of ₹670 crore. Against a budget of ₹1,641 crore for 2021-22, the civic body had estimated only ₹971 crore in its kitty.
{{/usCountry}}Liabilities as per stage of project
Only a section of the works is currently underway, while the rest are in different stages of implementation.
A liability of ₹33 crore stands for projects which have been approved by the MC General House and the Finance and Contract Committee (F&CC), but are awaiting administrative approval. Projects in which all approvals are in place but the tender process is yet to start are around ₹116 crore.
“Then there are projects, worth around ₹71 crore, for which the tender process has already been initiated. For around ₹116 crore worth projects, work has already been allotted but these are yet to start. Even the ongoing works, worth ₹152 crore are at stake,” said the official.
Recent fund requests
Facing severe fund shortage, the MC had recently written to the administration to grant ₹26 crore on account of electricity duty.
Earlier, with the administration not releasing the full grant promised under the dedicated fund for development of 13 villages, the MC had written to it to either release ₹20 crore or have these works done by the UT engineering department.
“Funds of ₹15.85 crore are required for repairing internal streets, ₹2.04 crore for repair of buildings, ₹1.17 crore for horticulture and electrical works,” said the official.
Notably, the UT has already junked MC request for the release of ₹90 crore as additional grant for the current fiscal. The additional grant was sought in lieu of the estimated loss in revenue on account of stay on hike of water tariff.
Mayor Ravi Kant Sharma, said, “We have funds for all the works, for which tenders have already been allotted. More funds are in the pipeline. For instance, the administration has already agreed in principle to transfer the electricity duty. A reminder on Fourth Pay commission funds have been sent to Union government. There will be no shortage of funds for any of the development works planned this year.”