The Deccan Chronicle 10.11.2010
GHMC seeks Rs 600 cr loan for projects
Nov. 9: Residents of nearly 800 colonies in the surrounding municipalities that were recently added to the city will be exempted from paying more taxes. The Greater Hyderabad Municipal Corporation has abandoned its plan to rope in private parties to develop civic infrastructure like underground drainage network, drinking water distribution lines, cement roads and streetlight poles.
The idea was to increase property tax by 30 per cent in the 800 odd colonies in surrounding municipalities and repay the amount invested by the private parties. With the standing committee of corporators rejecting any hike in property tax, the GHMC has decided to obtain a loan of `600 crore and execute civic infrastructure works on its own in the peripheral areas.
“We have written to the state government seeking its permission to obtain a loan of `600 crore. A couple of banks are willing to give loan to the GHMC. The repayment of the loan will be done with internal financial resources of the corporation. Approval from the government is awaited,” the GHMC additional commissioner (finance/revenue), Mr Hari Krishna, said.
However, the existing norms such as 30 per cent share of house owners to get drinking water line and underground drainage connection charges among others will continue. “There is no change in the existing norms. The change is only in terms of GHMC executing the works instead of private agencies as proposed earlier,” he said.
Meanwhile, the GHMC draft budget estimates for the year 2011-12 have been completed with an outlay of over Rs 3,000 crore compared to Rs 2,600 crore for the current 2010-11 financial year.
