Cash-strapped, debt-ridden NMC seeks fresh loan from BoM to pay old dues

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Nagpur: The cash-strapped and debt ridden Nagpur Municipal Corporation (NMC) is again planning to procure a hefty loan from a bank.

In a meeting held on Tuesday, the Standing Committee of NMC gave its approval for the process to take loan of Rs 25 crore from Bank of Maharashtra. The hefty loan, to be taken in the form of overdraft, is aimed at repaying the old loan the NMC had procured.

It is pertinent to recall, the cash-starved NMC is already repaying interests and loan amounts in crores annually. In the past few years, the huge gap between the expenditure and revenue recovery has put the civic body in financial mess. The enforcement of Local Body Tax (LBT) and later its withdrawal has virtually forced the NMC go bankrupt.

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Now, the civic body is seeking a fresh loan at a time when BJP is running the State Government and Central Government as well. The NMC bosses had pinned high hopes of receiving huge funds from the both the Governments to tide over the financial crisis but nothing of sorts happened. The meager share of LBT withdrawal too has shattered the dreams of NMC.

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