Fund-starved MC stares at challenge to raise ₹110 crore
Needs to contribute the amount annually as maintenance cost, besides the ₹650 cr to be pumped in by state, central governments
Uncertainty looms over execution of the Buddha Nullah rejuvenation project, with the cash-strapped municipal corporation (MC) expected to contribute ₹110 crore as annual maintenance cost towards the project.
Faced with emptying coffers, the general House of the corporation in its December 31 meeting had decided to form a committee to take a final call on the matter.
On Saturday, mayor Balkar Sandhu formed the committee, comprising cabinet minister Bharat Bhushan Ashu, Congress MLAs Sanjay Talwar, Surinder Dawar, Rakesh Pandey, senior deputy mayor Sham Sundar Malhotra, Congress councillors Dr Jai Prakash, Kuldeep Janda, Ashwani Sharma and Rashi Aggarwal, among others.
But the question remains:
How the civic body will muster the funds?
Earlier this month, chief minister (CM) Captain Amarinder Singh had okayed the ₹650-crore rejuvenation project, following which the Punjab Municipal Infrastructure Development Company (PMIDC) floated tenders for it.
As per the PMIDC proposal, besides the overall cost of the project, to be funded by the central and state government, MC also needs to contribute around ₹110 crore as annuity and annual maintenance of the project.
For this, PMIDC proposed earmarking 50% of the finance commission grant received by MC (₹25 crore) and 50% of the electricity tax collected by MC (₹17 crore). Besides, MC has already allocated ₹25 crore from its budget towards the annual maintenance head, but was asked to add another ₹5 crore to it. The remaining amount was proposed be collected by increasing stamp duty on properties by 1%.
The PMIDC also recommended revision in the water-sewer user charges. But, the MC House put this on hold, leaving it for the committee to take a decision on.
The demand comes when the Ludhiana MC is reeling under severe financial crunch, which had even prompted the local bodies department to restrict it from executing new development projects.
An MC official, requesting anonymity, said the civic body was struggling to even pay salaries to its employees. Increasing the stamp duty on properties will only burden city residents more.
On the other hand, the municipal tax, collected by the Punjab State Power Corporation Limited (PSPCL), has not been transferred to MC since September 2018. Around ₹45 crore were due, the official said.
Worse, the official said, PMIDC floated tenders for the nullah project even before the proposal of annual maintenance could be tabled in front of the MC House on December 31.
Significantly, the National Green Tribunal (NGT) had slapped a fine of ₹50 crore on the state government last year for failing to curb water pollution.
On Friday, PPCB had withdrawn a criminal case against the mayor, MC commissioner and six others after MC submitted its action plan to clean the Buddha Nullah with a March 2021 deadline.
Mayor Balkar Sandhu said all MLAs and councillors whose areas fell in the vicinity of nullah were part of the committee. Apart from the elected representatives, MC officials were also part of the panel, which was expected to hold a meeting next week.
Sandhu said the committee will deliberate on arranging the funds and take a final decision. He added that PMIDC officials will also soon meet the councillors and MLAs to explain nuances of the project to them.