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Facing financial crisis, Chandigarh MC to stop construction works

Chandigarh MC may not even be able to pay salaries in final two months of this fiscal.

punjab Updated: Dec 19, 2017 13:45 IST
Hillary Victor
Hillary Victor
Hindustan Times, Chandigarh
financial crisis,Chandigarh MC,construction works
The Chandigarh municipal corporation is also exploring ways to increase revenue from internal sources.(HT File)

With the Chandigarh municipal corporation facing financial crisis, MC commissioner Jitender Yadav is reported to have asked its officers to cut expenditure and halt all major construction works.

Only maintenance works will be carried out, said a senior officer who attended a meeting chaired by Yadav on Monday. The projects that will be affected include ongoing construction of four community centres and recarpeting of roads. On December 11, HT had highlighted the civic body’s poor financial health.

A senior officer who attended the meeting told HT that the commissioner had in fact asked the engineering wing not to carry out construction works with budget of Rs 5 crore to Rs 10 crore.

With Rs 125 crore left in a fixed deposit and only Rs 10 crore being generated per month through its own sources of income, the MC faces exhaustion of all its funds by January-end. If it doesn’t receive central funds, it may not be able to pay salaries to its employees and carry out development works in final two months of this fiscal.The MC spends Rs 60 crore every month on paying salaries and implementing various works.

To table white paper in House

On Monday, MC officials decided to bring a white paper on the financial condition of the civic body in the next House meeting. Chaired by Yadav, the meeting was attended by chief accounts officer Uma Shankar Sharma, chief engineer Manoj Bansal and additional commissioner Anil Garg among others.

“I have asked the officer concerned to bring a white paper on the financial condition of the MC,” Yadav told HT. “We will apprise the House about the poor financial health of the civic body in the next House meeting. Unless the MC is able to generate additional revenue, we will not be able to carry out development projects in the city as we are short of Rs 30 crore even to pay salaries.”

A senior officer who attended the meeting told HT that the commissioner had in fact asked the engineering wing not to carry out construction works with budget of Rs 5 crore to Rs 10 crore. The officers also discussed avenues to increase the MC’s sources of income, including water tariff hike and auction of vacant properties by lowering the reserve price.

First Published: Dec 19, 2017 13:44 IST