The Hindu 01.10.2009
‘How will the corporation fund projects under JNNURM?’
Staff Correspondent
Mysore: The Mysore Grahakara Parishat (MGP) has raised questions on how the Mysore City Corporation (MCC) will generate funds for projects under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in Mysore.
According to the City Development Plan (CDP), which has been prepared by the corporation as a prerequisite for obtaining JNNURM projects, the civic body would have to contribute Rs. 53 crore every year between 2007 and 2012. Between 2013 and 2031, the corporation would have to spend Rs. 547 crore annually for the development of infrastructure in Mysore.
Yearly expenditure
In a recent release, parishat president S.G. Vombatkere said, “During 2007-12, the average yearly expenditure was Rs. 328 crore, of which the corporation provided Rs. 53 crore and the remainder came from various Central and State grants. The average yearly expenditure for the remaining period between 2013 and 2031 is Rs. 547 crore and the corporation will have to pay the full amount on its own.”
Mr. Vombatkere said it is not evident how the corporation proposed to raise the requisite funds each year for projects taken up under the JNNURM.
“The Mysore City Corporation has not repaid the Asian Development Bank loan which was taken a few years ago for infrastructure development. As a result of non-payment, the Rs. 130-crore loan has now become Rs. 300 crore, inclusive of interest. The corporation remains silent about this fast growing liability and has made no allocation in its budget towards clearing this loan.”
He said that from a cursory glance at the civic body’s last few budgets, it is clear that the corporation cannot generate the funds needed to take up projects under the JNNURM.
