The cash-strapped Chandigarh municipal corporation (MC) is once again set to propose the transfer of all V3 roads —sector-dividing roads spanning nearly 275 km— into the UT administration jurisdiction, for carpeting and maintenance. The proposal will be tabled in the upcoming House meeting on Tuesday, August 26.

In its fresh agenda note, the MC stated: “There are approximately 71 V3 roads under MC’s jurisdiction with a total length of about 275 km. As per norms, resurfacing, strengthening and carpeting is required every five years to maintain road quality. However, due to financial constraints, no work has been undertaken in the past two years, leading to rapid deterioration. At present, the MC requires at least ₹45 crore to carpet 50 km of V3 roads. Given our financial situation, it is proposed that the House reconsider transfer of these roads to the UT in public interest.”
This is not the first time the civic body has attempted such a move. In March this year, the House had rejected a similar proposal, arguing that transferring the roads would cut off chances of additional financial aid from the UT administration. The rejection, however, came with a dissent note from MC commissioner Amit Kumar, who had emphasised that without funds, the civic body won’t be able to undertake any carpeting this season. Mayor Harpreet Kaur Babla too had backed the idea of transfer, suggesting that the roads could be reclaimed once MC’s financial condition improves.
Following the rejection, MC wrote to the administration, but the UT refused to take over the roads, seeking clarification on the legal basis and rules under which such a transfer could be made.
{{/usCountry}}Following the rejection, MC wrote to the administration, but the UT refused to take over the roads, seeking clarification on the legal basis and rules under which such a transfer could be made.
{{/usCountry}}With the city’s roads worsening and opposition protests growing louder, MC has now revived the proposal. Officials said the civic body requires nearly ₹50 crore to re-carpet around 250 km of “very poor roads (mostly other than V3 roads),” and without immediate funds, another crucial carpeting season—October-November—could be lost.
Currently, the MC maintains around 2,000 km of city roads—over 60% of Chandigarh’s network—including V3 (sector dividing), V4 (shopping streets), V5 (sector circulation), V6 (residential access) and internal roads in villages and rehabilitation colonies. With even pothole repairs halted for months, residents have been flooding grievance portals and helplines, demanding urgent road maintenance.
Besides this, MC will also discuss an agenda to organise the Rose Festival, in February 2026, with sponsorship from private players due to the financial crisis. The estimated budget is ₹1.12 crore for the annual festival. MC will also table an agenda to finalise terms and conditions for new firms that will be engaged for GIS based mechanised sweeping in Southern sectors.
IOCL to be roped in to convert waste into bio fuel
The MC is planning to engage Indian Oil Corporation Limited (IOCL) to process the city’s wet waste and convert it into compressed bio gas (CBG).
The agenda comes nearly five months after the MC House rejected the integrated solid waste management plant citing flawed terms and conditions, and suspected financial misappropriation.
The House had unanimously demanded fresh proposals with revised plans and conditions. The integrated solid waste management plant, approved by the MC in July 2023, was intended to address the city’s growing waste crisis. Located in Dadumajra, the facility was designed to process 600 metric tonnes (MT) of waste daily, including dry, wet and horticultural waste under the same roof. To be awarded for a 17-year period (two years for construction and 15 years for operation and maintenance), the project was opposed by the councillors.
On the latest proposal, an MC official said, “Under the Swachh Bharat Mission 2.0 (SBM 2.0), the Government of India launched the SATAT (Sustainable Alternative Towards Affordable Transportation) scheme, Oil Marketing Companies (OMCs) have been mandated to facilitate establishment of Compressed Biogas (CBG) plants. Under this framework, Indian Oil Corporation Limited (IOCL) has been designated as the implementing agency for Chandigarh.”
“In this context, IOCL, submitted a proposal for setting up a segregated organic municipal solid waste-based CBG plant at their own cost. IOCL, being a Maharatna Oil Company, has
business interests across the entire hydrocarbon value chain-from refining, pipeline transportation, and marketing to exploration and production of crude oil and gas, petrochemicals, gas marketing, alternative energy sources, and global downstream operations with cutting-edge R&D. The company has prior experience in biofuel projects,” the MC official added.
As per the proposal, IOCL will invest in both capital and operations cost. The earmarked land of approximately 10 acres at the Dadumajra dumping site will be utilised for the project.
The MC is planning a 15-year contract with the firm and will ensure an average 200 tonnes of wet waste per day and 30 tonnes of cow dung, free of cost, to the plant site.
If the House approves the agenda, MC will still have to figure out a plan to set up an integrated waste plant for easy processing of dry, mixed, and horticulture waste.