Lokmat News Network
Aurangabad: The cash-strapped Aurangabad Municipal Corporation (AMC) has landed into a complex situation as it will have to raise huge funds of Rs 987 crore to contribute its share in the three development schemes, approved under the Central Government’s Amrut 2.0 Mission.
It may be noted that to give a push to the development of city, the Centre has granted in-principle approval to three big projects under the Mission. The state’s Urban Development Department (UDD) has released an order in this regard. The nature of schemes and its funding details has also been mentioned.
New water supply scheme - Rs 2,740 crore
After strong persuasion, the new water supply scheme was included in the Mission. Earlier, the project was to be totally funded through the state government’s exchequer. However, after inclusion in the Mission, it is learnt that the Centre will be granted Rs 685 crore, the state will put in Rs 1,233 crore and the AMC will have to share a burden of Rs 822 crore. Moreover, the centre and the state will be releasing funds only after AMC invests its share in the project.
Satara-Deolai Sewage Scheme - Rs 275 crore
The drainage scheme was supposed to be implemented by AMC but has been included in the Mission. The cost of the scheme is Rs 275 crore, out of which, the Centre will release Rs 68 crore, the state will grant Rs 124 crore and the AMC’s share will be Rs 82 crore.
Kamal Talao - Rs 2.78 crore
To revive the past glory of the historic water pond - Kamal Talao - the AMC prepared a detailed project report (DPR) of valuing Rs 2.78 crore and sent it to the Centre for funding. Now, after inclusion in the Mission, the Centre will release Rs 69 lakh, the State will give Rs 1.25 crore and the AMC has to put in Rs 83 lakh.
18 per cent GST
The GST tax has been levied on the new water supply scheme. Under the Mission, the Central Government will share a contribution of Rs 685 crore in it, but on other hand it will be collecting around Rs 600 crore in the form of GST.
The financial crisis before AMC
Earlier, the AMC due to financial crunches did not have money to contribute its share in the projects approved under the Smart City Mission. Hence the administration obtained a loan to put its share of Rs 250 crore. Now, the million-dollar question before the AMC is from where to raise the funds of Rs 987 crore to put its share in the above three schemes. Earlier, the state rulers had given an assurance to the AMC that it would not have to contribute a single rupee to the water scheme and the total cost would be borne by the state, it is learnt.