Lokmat News Network
Chhatrapati Sambhajinagar:
The Chhatrapati Sambhajinagar Municipal Corporation (CSMC) need a sum of Rs 822 crores for the completion of a new water supply scheme in the city. As the civic body does not have such a large amount in its treasure, the state government has ordered to take a soft loan. However, the CSMC does not have the capacity to repay this loan either. As a result, the municipal corporation’s share should be provided by the state government. It should reconsider its decision, requested the former mayor, Nandkumar Ghodele, in a memorandum submitted to the Chief Minister Eknath Shinde.
Ghodele stated that the municipal corporation has already taken a loan of Rs 250 crores to cover its share of the projects launched under Smart City Mission. For the repayment of this loan, a monthly installment of Rs 3.25 crore has to be paid. The administration is struggling to arrange for this installment. The salaries of officers and essential expenses are covered by the monthly GST grants released from the government.
If the municipality is given a loan of Rs 822 crore, a monthly installment of Rs 10 to 11 crore will need to be paid. If this amount is deducted from the GST grants, the municipal corporation will not be able to pay the salaries of its officers and employees. The collection of property tax and water tax is minimal. Every year, the CSMC has to bear a loss of Rs 60 to Rs 65 crore annually in the operation of water supply scheme. The annual income of the municipal corporation is between Rs 500 and Rs 600 crore, considering this, Ghodele has demanded that the amount be given as a grant instead of a loan.