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Pune’s 24x7 water supply project: Rs.200 crore bond cash goes in FD

By doing this, the standing committee aims to minimise the interest burden on Pune Municipal Corporation 

pune Updated: Aug 09, 2017 09:41 IST
HT Correspondent
HT Correspondent
Hindustan Times, Pune
The 24x7 water scheme now stands postponed by at least four months.(HT File Photo)

Pune Municipal Corporation (PMC) will hold the money it has raised via issuing a municipal bond in a fixed deposit. The Rs.200 crore was raised throught municipal bond for the 24x7 water supply project for the city.

The standing committee of the PMC gave its clearance to deposit the Rs 200 crore received through the municipal bond into fixed deposit, as tenders for the 24x7 water supply scheme have now been scrapped.

Standing committee chairman Murlidhar Mohol told media persons that the committee had given the nod for keeping this amount in a fixed deposit to minimise the interest burden on PMC.

Following the cancellation of the tenders by municipal commissioner Kunal Kumar, the 24x7 water scheme now stands postponed by at least four months.

PMC was the first municipal corporation in the country to issue municipal bonds for the mega project to be executed by the municipal corporation. Prime Minister Narendra Modi and union urban development minister Venkaiah Naidu appreciated the municipal corporation’s efforts to raise funds through municipal bonds.

Now, as the water project is delayed, it will put an additional burden on the civic body with a 7% interest payment on the Rs 200 crore.

Opposition party leader Chetan Tupe also wrote a letter to the municipal commissioner and requested them to make a fixed deposit account immediately to bring down the financial burden.

First Published: Aug 09, 2017 09:41 IST