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Financial Management

New projects gain in HMDA budget

Wednesday, 13 March 2013 08:54 administrator
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The Hindu                        13.03.2013

New projects gain in HMDA budget

 

The HMDA on Tuesday proposed a budget of Rs. 3,772 crore for the year 2013-14, a rise of around Rs.800 crore from the previous year.

Around Rs.1,131 crore has been earmarked for new projects, including Rs. 300 crore for the proposed Regional Ring Road and another Rs.150 crore towards protection and development of lakes.

New projects for which funds are sought to be allotted, include the site services at Jawaharnagar, the inter-city Bus Terminal at Miyapur, Transit-Oriented Development at Moosapet and Saroornagar. Logistic Hubs at Mangalapally and Batasingaram, apart from the much-delayed rail-over bridge (RoB) at Sanjeevaiah Park too find a mention among the new projects.

The budget estimates also include revenue receipts to the tune of Rs. 885 crore, while capital receipts has been pegged at Rs. 2,887 crore.

Another major component of the revenue receipt — around Rs. 313 crore — will come from development charges, processing fee and other charges. The HMDA has put government grants at Rs.1,998 crore as against last year’s Rs.1,220 crore and raising Rs.159 crore from the auction of bulk lands.

The Outer Ring Road (ORR) project has been provided with Rs.1,551 crore and the Hussainsagar Lake and Catchment Area Improvement Project has been put at Rs.101 crore.

 

Indore Municipal Corporation budget likely in April first week

Tuesday, 12 March 2013 09:32 administrator
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The Times of India                  12.03.2013 

Indore Municipal Corporation budget likely in April first week

INDORE: Upcoming budget of Indore Municipal Corporation (IMC) is expected to be nothing more than an old wine in new bottle laced with some zing of populist schemes, experts say. The budget is expected to be presented in the first week of April.

Some projects which were part of the previous budget, are once again expected to find place in the budget for 2013-14 and several new announcements related to infrastructure development and beautification of crossing and roads may impress the voters in the election year.

Mayor-in-council has approved the outline of the budget and the final budget will be drafted after making allotment for funds to various departments. The current budget is expected to be of around Rs 1,500 to Rs 1,700 crore as against the previous year's budget of nearly Rs 1,490 crore.

The civic body has been making allotment of funds for construction of an international standard swimming pool in the city in its budget for the last three years and once again the mayor is expected to showcase the dream in the upcoming budget with an allocation of around Rs 5 crore.

Fund of Rs 1 crore was allocated for the pool for the first time in budget of 2010-11. In the budget of 2011-12, the civic body allocated Rs 2 crore and in 2012-13 budget, the allocation was increased to Rs 5 crore.

In the last three years, the allocation of fund for the project has increased by five times but the promise still remains on paper. Indore Development Board (IDA) has decided to give 8 acre land at Pipliyahana for the project but IMC has yet no able to take possession of the land.

IMC official said that demarcation of land was opposed by few people. A survey was conducted later by tehshildar and revenue inspector during which it was found that some of the private land had also been marked under the project. Sport in-charge of IMC Ajay Singh Naruka claims that the issues have been resolved and planning and drawing work of the project will start next month.

Similarly, previous year announcement related to Kamla Nehru Zoo will once again incorporate in the new budget. Last year, the IMC had allocated Rs 3 crore for construction of an aquarium, snake house, forest-like enclosure for elephants, grand entrance gate and a multi-level parking. In the budget of 2013-14, it may allocate Rs 4 to 5 crore for the same.

Last year budget had announced construction of a new IMC building and fund was allocated for the same. This year, the budget may allocate fresh funds for construction of the building. Announcement of providing 24X7 water supply and starting of Narmada Phase III are expected to be repeated in this budget as well.

New announcements like construction of bridges, link roads and beautification of crossings are likely to be made along with few other populist measures to impress voters ahead of assembly poll scheduled in November.
Last Updated on Tuesday, 12 March 2013 09:35
 

VMC puts bonds proposal on back burner

Tuesday, 12 March 2013 07:40 administrator
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The Hindu                      12.03.2013

VMC puts bonds proposal on back burner

G.V.R. Subba Rao 

Officials asked to make detailed study of finances of the corporation

Municipal Corporation here is striving to wriggle out of the financial crisis due to paucity of funds, but the proposal to issue bonds has been put on back burner.

District Collector and VMC Special Officer M. Buddha Prakash Jyothi has asked the Corporation officials to make a detailed study of pros and cons of the VMC finances vis-a-vis issue of bonds before embarking on the plan.

The proposal has been shelved, at least temporarily, as the Standing Committee headed by him did not approve of it, sources say.

Another hitch: there is no clarity among the wings of the Corporation on the bonds. All the wings, including accounts and engineering, point finger at each other and say that they were responsible for the detailing of bonds. 

The higher ups have not given any direction in this regard, officials say.

The VMC proposed to issue bonds worth Rs.250 crore to maintain momentum in completion of developmental works taken up under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) programme.

The proposal was made as the government has not released the dues to the tune of Rs.200 crore to the Corporation.

The VMC was under pressure from contractors, employees and from all corners to clear the dues.

The employees were agitated that the salaries were not being paid in time.

The salaries were overdue by two to three months some time ago.

Fixed assets

The corporation has fixed assets, including complexes and open lands, worth of Rs. 6,000 crore.

The CRISIL and CARE, rating agencies, will give their ratings after assessing the assets, receipts, expenditure etc of the corporation.

Though the VMC is eligible to take a loan of Rs.400 crore based on the present rating ‘A’, the corporation has decided to borrow only Rs. 250 crore. The VMC accelerated the works to prepare the balance sheets of corporation.

The then Municipal Commissioner Md. Abdul Azeem stated that Chief Minister N. Kiran Kumar Reddy has ‘tentatively okayed’ the proposal. However, it is learnt that the government has not agreed to give a counter guarantee to the bonds.

It is not the first time that the proposal to issue bonds was mooted. Similar proposals were made when Natarajan Gulzar was Municipal Commissioner in 2005.

Then, to float tax-free bonds on the lines of what the Municipal Corporation of Hyderabad (MCH) and the Municipal Corporation of Visakhapatnam (MCV) was option before the VMC to pool up resources towards its share in JNNURM.

In 2004, the general body also toyed with similar idea to take up developmental works.

 
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