Published On : Thu, Oct 24th, 2013

NMC to get another Rs 200 cr to clear its dues; Standing committee approves loan proposal

Nagpur News :

The cash strapped Nagpur Municipal Corporation would finally get some moolah albeit through loan. The NMC administration which proposed to seek loan of Rs 200 crore got approval by the standing committee panel on Thursday. The civic had sought the loan to meet various expenses mainly clearing the dues under various heads.

Standing committee chairman Avinash Thakre informed that the amount approved in the loan would be used to clear NMC’s dues towards JNNURM projects, contractors’ dues, rehabilitation work for flood hit areas and Rs 50 crore to fill the revenue shortfall due to implementation of Local Body Tax.

Though giving its nod to the civic body’s proposal for retendering a project for road markings worth Rs 40 lakh, Thakre hinted of action against officials involved for delay in awarding the work.

The committee also approved civic administration’s proposal for developing Solar City project. But implementing the project would prove costly for the NMC, he said and explained that the NMC had prepared this proposal worth Rs 11.50 crore and later send it to the central government for its nod. Though the central government approved it and subsequently reduced the project cost to Rs 9.38 crore. The CRS of State government is more as compared to central government, said Thakre and the central government will pay its 50% share (Rs 4.91 crore). But it increased the civic body’s contribution by more than 50%, he said.

Similarly, the panel has also given its nod to various other projects worth Rs 5.58 crore.