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Is Corporation hit by funds, ask Councillors

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The Hindu              18.06.2013

Is Corporation hit by funds, ask Councillors

Councillors, contractors allege that shortage in funds is affecting repair and maintenance works in Wards.
Councillors, contractors allege that shortage in funds is affecting repair and maintenance works in Wards.

Is the works being carried out under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) affecting regular development works?

This is the question Councillors cutting across party lines are asking after they see a delay in sanctioning works.

The Councillors, on condition of anonymity, say that it appears that the Corporation has bit more than it can chew because a good portion of the income earned goes towards paying the civic body’s contribution towards JNNURM.

The Corporation has to bear 30 per cent of the project cost under the JNNURM scheme.

And the Corporation has to use a portion of the income to pay loans it has availed of.

Outcome Budget

In the 2013-14 Outcome Budget, the Corporation has allotted works to the tune of Rs. 48.17 crore – storm water drain Rs. 24 crore; comprehensive sewerage scheme Rs. 14.50 crore; 24x7 water supply scheme Rs. 2 crore; rejuvenation of water bodies Rs. 1 crore; improvements to natural drains Rs. 1 crore; and e-governance Rs. 5.67 crore.

The Corporation had presented a deficit budget of Rs. 20 crore.

A ruling party councillor says that the shortage of funds was affecting regular works like constructing drains or laying new roads. As a result, contractors who regularly take up contract work, too are feeling the pinch in that there are very few projects on offer.

It has been so for the last year or so.

A contractor close to the ruling establishment says that it is largely repair and maintenance work with a minimum budget that is available for contractors.

Construction of new park, road or other works that usually get passed at the zonal meetings are few and far in between.

Earlier crisis

A senior AIADMK Councillor says that when there was a financial crisis around 10 years ago, low-budget works were taken up at the ward-level. But that is not happening now.

The Corporation is forced to look up to the State Government for funds.

This does not bode well for a city that has big ambitions.

Officials, however, say that the Corporation was not sanctioning storm water drain projects at places covered under the JNNURM project to avoid duplication.

Likewise, it avoids sanctioning natural drain cleaning works for the very reason.

On the water supply front, the Corporation sanctions works without delay.

Funds shortage has never been a problem for the Corporation, they add.