The Hindu              08.01.2014

Corporation seeks Rs. 40.30 crore as interest-free loan

The City Municipal Corporation has sought Rs. 40.30 crore as interest-free loan under the Integrated Urban Development Mission for 2014-15 towards payment of pending electricity charges and drinking water charges.

Currently, the corporation receives 12 million litres of drinking water a day through the Mettur- Nangavalli — Salem (Old) Water Supply Scheme, maintained by the corporation, and 59 million litres a day through the Mettur — Salem — Attur Combined Water Supply Scheme, maintained by the Tamil Nadu Water Supply and Drainage Board.

Expense

The corporation pays Rs. 47 lakh as electricity charges, and Rs. 71 lakh as water charges every month respectively to Tangedco and TWAD.

The corporation has incurred Rs. 129.79 crore from 1998-2013 for the above expenses of which Rs. 103.38 crores were paid.

Though there is no outstanding amount payable from January 1, 2012 to till date, a sum of Rs. 26.41 crore from 1998 to 2011 was still pending. Also, the corporation bears Rs. 85 lakh every month towards electricity charges for the street lights in all the 60 Wards. But has an outstanding amount of Rs. 13.89 crore payable for the period 2011-2012.

Outstanding

Corporation officials said that because of financial constraints, the civic body is not in a position to pay the outstanding amount of Rs. 26.41 crore to TWAD and Rs. 13.89 crore to Tangedco.

Hence decided to seek interest-free loan under the IUDM. A resolution was passed at the recently held council meeting regarding the same, they added.

Officials added that once the Rs. 320.54 crore Mettur — Salem Dedicated Water Supply Scheme is implemented, water supply from the TWAD is not necessary and the electricity bill would also be reduced significantly.