The Hindu 18.12.2009

GHMC scales down budget projection

HYDERABAD: The Greater Hyderabad Municipal Corporation (GHMC) has significantly scaled down its budget projections for the next financial year of 2010-2011 by more than Rs. 500 crore when compared to the current budget for the year 2009-2010.

As per the orders issued by the Municipal Administration and Urban Development Department on Thursday, the municipal corporation’s budget estimates for the forthcoming year has been fixed at Rs. 2,637.76 crore, perhaps reflecting the dire financial condition of the civic body.

In sharp contrast, the preceding budget estimate was put at. Rs. 3,159 crore.

Senior officials then had boasted that the clean 8.4 per cent hike from the previous year’s budget estimate of about Rs. 2,920 crore was “realistic and futuristic” to propel the right kind of balanced development despite economic slowdown.

It also indicates that the next year’s budget projection is pretty less even when compared to the budget of 2008-2009! Officials explain that projections for next year were based on the likely expenditure and revenue generated till this month.

JNNURM funds

A significant issue was drastically reducing the expected funds under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

Earlier, it was expected that at least Rs. 1,000 crore could be obtained from the Centre under the Mission but having exhausted all the released funds for the city, the figure has now been reduced to about Rs. 300 crore.

The Commissioner had requested the Government to approve the budget as also the revised budget estimates for the current financial year.

The Standing Committee had accorded approval for the budget estimates as well revised estimates last month itself. The reduced estimate also means not much expectation of revenues.

Capital’s infrastructure development with inclusive growth slogan is likely to go for a toss as several projects including housing for poor, drains improvement, new link roads as well was road widening and many others are awaiting funds.

The Times of India 09.12.2009

PCMC to take Rs 200 cr loan from Hudco

TNN 9 December 2009, 04:07am IST

PUNE: The standing committee of the Pimpri-Chinchwad municipal corporation (PCMC) on Tuesday approved the revised proposal to take a loan of Rs 200 crore from the Housing and Urban Development Corporation (Hudco), instead of nationalised banks, to bridge the gap in funds for the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) projects.

Municipal commissioner Ashish Sharma told reporters that the civic general body had approved a proposal to take Rs 200 crore from nationalised banks at 9.5 per cent interest rate. But Hudco has agreed to give the loan at 7 per cent interest rate. So a revised proposal was sent to the standing committee.

Sharma said, "The loan has to be repaid in 15 years. This is a credit line of Rs 200 crore. We will not take the entire amount at a time but take only as much as we require. We have to submit the loan proposal to Hudco on Wednesday."

The state government has sent a letter to all municipal corporations directing them to approach Hudco for loans, he added.

Explaining the gap in JNNURM funds, Sharma said, "The Union and state governments and the municipal corporation share the expenditure on projects approved under the JNNURM. Sometimes, there is a delay in receiving the funds from the Union and state governments. This creates a gap in funds and the PCMC has to spend money from its own funds to continue the work. This creates unnecessary burden on the civic body. We will use the loan for meeting the gap in funds."

During the meeting, NCP member Prashant Shitole raised the issue of lack of traffic policemen at junctions, standing committee chairman Dnyaneshwar Bhalerao said. "In the absence of policemen, people do not follow traffic rules and there is chaos, he said."

Bhalerao added: "Member Ramdas Kumbhar lamented that the administration was not taking action against unauthorised mobile towers. He pointed out that the PMC conducted a special drive against unauthorised mobile towers and collected a fine of Rs 5 crore."

According to Bhalerao, Kumbhar alleged that the PCMC was not approving small ward-level projects involving an expenditure of Rs 5 lakh, citing lack of money as reason. "The civic body could collect fine from unauthorised mobile operators and earn some money, he added. The officials replied that the administration was conducting the drive in zones A and C.".

Bhalerao said that members Jagdish Shetty, Sunny Ovhal and Rajesh Pillay asked why the PCMC was not giving salary cheques directly to the computer operators employed on contract basis in the octroi department. Bhalerao said that earlier two contractors had supplied 60 computer operators to the department. "Now, there is only one contractor with 45 employees. The contractor does not give the entire salary to the workers. So, the members demanded that the PCMC should directly pay the salaries to these workers."

The officials pointed out that the PCMC cannot give salary cheques directly to the workers as the workers will later demand that they be regularised as municipal employees. Sharma directed the octroi department to give work to only those contractors who pay salaries as per the contract they sign with the PCMC.