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IMC loan repayment @ Rs 5 cr per month

THE INDORE Municipal Corporation with an annual income of Rs 75 crore will have to shell out a total of Rs 978 crore over the next 24 years towards loan repayment for infrastructure development schemes.

india Updated: Feb 11, 2006 14:31 IST

THE INDORE Municipal Corporation with an annual income of Rs 75 crore will have to shell out a total of Rs 978 crore over the next 24 years towards loan repayment for infrastructure development schemes.

The biggest chunks will go towards bankrolling the Corporation’s share of the Rs 641 crore ADB loan (Rs 97.5 crore) and the NURM-financed Rs 325 crore sewage and drainage scheme (Rs 77 crore).

The worrying statistics were listed in a white paper presented by Municipal Commissioner P Narhari to the Mayor-in-Council on Wednesday. The paper pointed out that loan repayments would necessitate payments of almost Rs 5 crore a month.

Instead of burdening residents with further taxes the white paper called for the IMC to be granted rights for FL-2, FL-3 for alcohol, 3 per cent surcharge on Rs 1,800 crore commercial tax generated by the City as well as a share in vehicular tax and vehicle registration fees to meet the loan repayment burden.

The Corporation earns Rs 75 crore from taxes each year and receives another Rs 200 crore from MLA/MP development, urban poverty alleviation, slum area development schemes and social security funds.

However, it expends Rs 6 crore on salaries and establishment costs alone. And then there are the whopping power costs for supplying Narmada water that come to Rs 400 crore per year.

In the face of this adverse income-expense ratio exploring fresh methods of generating additional revenue was the only way to prevent the Corporation from going under argued the white paper.

First Published: Feb 11, 2006 14:31 IST