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PMC to borrow ₹530 cr for devp works in merged villages
Pune Municipal Corporation plans to borrow ₹530 crore for developing a sewage water network in merged villages, despite having ₹3,000 crore in fixed deposits. Civic activists are unhappy with the move, arguing that using the fixed deposit amount instead of borrowing would be more beneficial for the civic body. Many of the villages lack basic amenities despite higher taxes being collected from them.
Even as Pune Municipal Corporation (PMC) has fixed deposits worth ₹3,000 crore, the civic body now plans to raise an additional ₹530 crore through borrowings, a move that has irked civic activists.
The PMC plans to borrow the sum for developing a sewage water network in the merged 34 villages.
Municipal commissioner Vikram Kumar on Monday announced borrowing ₹530 crore loan for developing sewage network in 34 villages merged during the past six years under municipal limits.
Earlier, the PMC was expecting to get funds from the State government for the development of the areas as these villages were merged into the PMC, but as the authorities failed to sanction funds, the PMC has now planned to borrow the loan.
Vikram Kumar said, “PMC will borrow the ₹530 crore loan for erecting sewage network and sewage treatment plant in the merged areas and will start work soon.”
Civic activist Vivek Velenkar however objected to it saying, “We have taken the information under the Right to Information (RTI) act in the month of April this year. As per the information given by PMC, the civic body had fixed deposits worth ₹2,200 crore and it has invested ₹755 crore in the government bonds.”
Velenkar said that it is common sense that fixed deposits earn less interest rate than the interest rate on loan amount. If PMC will avail the fixed deposit amount instead of borrowing it, it is beneficial for the civic body.
He also asked the PMC that if they want to borrow a loan, at least they should take it against the fixed deposit from the same banks and negotiate for interest rates.
Many of the villages where PMC wants to develop drainage networks lack basic amenities including roads, sewage lines, inadequate water supply, and street lights. While PMC has already started collecting higher taxes from these areas, many of them still lack basic amenities.
