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Cash-strapped Chandigarh MC bans new tenders
In May this year, NGT had asked the Chandigarh administration to set aside ₹282 crore for solid and liquid waste management after it sought waiver of penalty for violations
Having ring-fenced ₹282 crore from its funds for city’s waste management on the orders of the National Green Tribunal (NGT), the now fund-starved Chandigarh municipal corporation (MC) has been forced to stall tenders for development projects till at least December.
Issuing an order in this regard, MC commissioner Anindita Mitra said, “As per orders of NGT to ensure availability of funds to the extent of ₹282 crore, MC has ring-fenced this amount from its funds available under various heads, including funds allocated under capital head. Therefore, in interest of financial prudence, no new tender shall be floated except those of emergent nature, till further orders.”
In May this year, NGT had asked the UT administration to set aside ₹282 crore for solid and liquid waste management after it sought waiver of penalty for violations.
The municipal commissioner’s order means that MC will not initiate even the approved development-related projects, at least till December, including those of road carpeting, paver blocks, and renovation or upgrade of community centres and toilets.
Over the last two days, MC had approved various projects to the tune of ₹10 crore during the F&CC and House meetings. These tenders will also be put on hold for now.
MC relies on funds from the UT administration as well as its revenue sources for its annual income. “The civic body received the second instalment of funds from UT in October and the next instalment is expected in December. At present, MC has limited funds available, out of which ₹282 crore have been allocated for waste management,” said Mitra.
She added that the civic body’s monthly liability, including salaries, and funds required for water supply and sewerage management, ran up to ₹66 crore per month.
“The liabilities will be taken care of for the next three months before more funds from UT come in. I have also written a letter to the UT administration to release ₹34 crore for upgrade of sewerage treatment plants under the Chandigarh Smart City head,” the commissioner said.
