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Municipal Finance

GVMC likely to borrow from HUDCO

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The Hindu      29.12.2010

GVMC likely to borrow from HUDCO

G.V. Prasada Sarma
Technical team holds discussion with Municipal Commissioner

GVMC needs additional funds to meet its share in JNNURM projects

It hopes to get loan in a month at an interest rate below 9 per cent


VISAKHAPATNAM: With prolonged negotiations hitting a roadblock, the Greater Visakhapatnam Municipal Corporation (GVMC) has now taken up borrowing of Rs.100 crores from HUDCO.

The GVMC needs additional funds to meet its requirement of 30 per cent contribution for the Rs.1,800-crores worth projects it has launched under the Jawaharlal Nehru National Urban Renewal Mission.

The corporation first borrowed Rs.100 crores from LIC. It had later gone in for another Rs.100 crores from Bank of India at 8.25 per cent. Officials have begun the process of negotiating with various banks for another Rs.100 crores for which the State government has accorded approval.

RBI guidelines

But following the RBI guidelines, the banks have changed their base rates and the hardening interest rates have prolonged the process. The Bank of India lent at 8.25 per cent when the base rate was 7.75 per cent. But now, its base rate has gone up to 8.75 per cent.

Commissioner V.N. Vishnu also participated in the negotiations taken up with the Bank of Baroda in Hyderabad in October.

The prospect of rates changing again has, however, stalled the process. The corporation's banker, State Bank of Hyderabad, itself is not willing to lend at a rate lower than 10.25 per cent.

During one of his visits to New Delhi, Mr. Vishnu has taken up the issue with top HUDCO officials familiar with Visakhapatnam and its mission works. With HUDCO willing to meet the requirement, the GVMC made out an application for the loan.

Sources said a local team on Monday discussed the issue with GVMC officials. A technical team from Hyderabad, in the city on Tuesday, had discussions with Mr. Vishnu.

It was here for a physical verification of the status of projects, the guarantees it offered etc.

Fund crunch

It is hoped that the loan would materialise within a month at an interest rate below 9 per cent.

HUDCO, a fully-owned Government of India organisation, has, among its activities, JNNURM, environmental improvement of slums, social infrastructure, financing of urban development projects.

The corporation, on the other hand, has been passing through a financial crunch, what with Rs.450 crores it had spent on the urban mission works stuck with the government as it had not met the reforms timeline, particularly those relating to solid waste management and GIS-mapping of properties.

 

CM slams BMC, asks for fiscal reports

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The Times of India  15.12.2010

CM slams BMC, asks for fiscal reports

NAGPUR: In a major blow to the Brihanmumbai Municipal Corporation, which has time and again caught flak from citizens over crumbling civic administration, CM Prithviraj Chavan on Tuesday admitted that all is not well with the Shiv Sena-BJP ruled corporation.

Pointing out that Mumbai's civic governance has declined over the years, Chavan said, "The BMC lacks transparency and accountability. This is a matter of great concern. I have asked for a detailed report on the BMC's financial transactions. If civic officials do not mend their ways, we will not hesitate to take stern action."

Chavan, however, turned down the Congress-NCP MLAs' demand for a high-level judicial probe or a CBI inquiry into the civic administration.

The chief minister said the BMC was being run in an ad-hoc manner. "Contractors are calling the shots. The BMC has not maintained an exhaustive balance sheet for the last three years. I have directed the BMC to table the balance sheets for 2007-08 and 2008-09 in next two months," he said. Civic officials have also been asked to submit the balance sheet for 2009-10 by July-end.

"There are irregularities in almost every sphere of the BMC-dumping grounds, water supply, open ground policy, reservation of plots, mid-day meal scheme for school children. The BMC's behavior is penny wise and pound foolish," he added.

Chavan, replying to a marathon debate in the legislative assembly on the worsening civic administration, agreed with several Congress-NCP MLAs that there were discrepancies in the functioning of the BMC. Chavan said, "Tenders are okayed in a dubious manner. Financial transactions lack transparency."

The chief minister further said that many civic projects suffer due to "fiscal indiscipline and mismanagement". "All such cases will have to be closely scrutinized and the BMC will have to be put back in order," he added. Chavan's statement in the House is seen as a political onslaught on the saffron rule in the Mumbai city hall, especially in the view of 2012 civic polls.

The civic polls will prove to be a litmus test for Chavan's litmus test in state politics and by targeting the cash rich BMC, the chief minister has, in a manner of speaking, cleared the decks for the crucial polls, say political observers.

Interestingly, the Sena-BJP MLAs remained silent even as Chavan condemned the BMC. Several saffron legislators, Vinod Goshalkar, Yogesh Sagar, Gopal Shetty and Tara Singh to name a few, began there political innings as city corporataors. However Sena leader Subhash Desai , who participated in the speech on Monday, said Chavan was playing a "political game" by targeting the BMC. Desai accused the government of creating hurdles in the functioning of the BMC by issuing "stay orders". from Mantralay.

Earlier talking informally to media persons, Desai said the ruling DF has raked up the BMC issue to divert the attention of the people from the Adarsh housing land scam of the Congress party.

Last Updated on Wednesday, 15 December 2010 11:52
 

City sidewalks go from bad to worse

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The Deccan Chronicle  14.12.2010

City sidewalks go from bad to worse

Dec.13: Poor maintenance, encroachment and digging up of footpaths have made walking a nightmare for pedestrians across the city. Even after a number of reports and special allocations in the BBMP budget, things have not changed at all. The main problem with the footpaths in the commercial areas of the city is rampant encroachment, poor maintenance, parking in residential areas and using the footpaths for vehicle parking, creating constant nuisance to walkers.

Even in congested areas like Richmond Road, Residency Road, Shivajinagar, Majestic, etc pavements are either being encroached upon or destroyed. In many places, footpaths which have been dug open for road widening work and laying of cables, remain in a state of disrepair even after several months, even as law enforcing agencies behave like mute spectators. According to officials, the BBMP is doing everything possible to ensure better pedestrian facilities, following the increasing number of walkers across the city. But the general perception is that even though BBMP is allocating sufficient funds for the improvement of pavements, no visible progress has been made.

According to the Policy Paper for Pedestrian Movement in the Bangalore Metropolitan Region, prepared by the Directorate of Urban Land Transport, just 60 per cent has been kept for Pedestrian Facilities in Cost Estimates for the entire Traffic and Transportation plan of the city, which is one of the major reasons for the problem. According to the report, city sidewalks are extensively used for parking and this, along with encroachments, creates a huge nuisance to pedestrians. According to the report, building pedestrian zones is one of the solutions to sort out the problem.

A.Ravindra, advisor to Chief Minister on Urban Affairs, says it is the responsibility of the Urban Local Bodies to ensure better pedestrian facilities. “State government has a clear-cut policy in this regard and has required ULBs including BBMP to keep money separate for this purpose. If the representatives failed to ensure this, people must reach out to them and find a solution for this problem. BBMP is solely responsible for all the issues related to the footpath problem,” he said.

Last Updated on Tuesday, 14 December 2010 05:55
 


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