The Hindu 08.01.2014
Corporation seeks Rs. 40.30 crore as interest-free loan
The City Municipal Corporation has sought Rs. 40.30
crore as interest-free loan under the Integrated Urban Development
Mission for 2014-15 towards payment of pending electricity charges and
drinking water charges.
Currently, the corporation
receives 12 million litres of drinking water a day through the Mettur-
Nangavalli — Salem (Old) Water Supply Scheme, maintained by the
corporation, and 59 million litres a day through the Mettur — Salem —
Attur Combined Water Supply Scheme, maintained by the Tamil Nadu Water
Supply and Drainage Board.
Expense
The
corporation pays Rs. 47 lakh as electricity charges, and Rs. 71 lakh as
water charges every month respectively to Tangedco and TWAD.
The corporation has incurred Rs. 129.79 crore from 1998-2013 for the above expenses of which Rs. 103.38 crores were paid.
Though
there is no outstanding amount payable from January 1, 2012 to till
date, a sum of Rs. 26.41 crore from 1998 to 2011 was still pending.
Also, the corporation bears Rs. 85 lakh every month towards electricity
charges for the street lights in all the 60 Wards. But has an
outstanding amount of Rs. 13.89 crore payable for the period 2011-2012.
Outstanding
Corporation
officials said that because of financial constraints, the civic body is
not in a position to pay the outstanding amount of Rs. 26.41 crore to
TWAD and Rs. 13.89 crore to Tangedco.
Hence decided
to seek interest-free loan under the IUDM. A resolution was passed at
the recently held council meeting regarding the same, they added.
Officials
added that once the Rs. 320.54 crore Mettur — Salem Dedicated Water
Supply Scheme is implemented, water supply from the TWAD is not
necessary and the electricity bill would also be reduced significantly.