After Rs 270cr loss in finance panel grants, NMC seeks relaxed norms
Nagpur: The city was deprived of over Rs270 crore in sanctioned grants under the
15th Finance Commission
, primarily due to the absence of an elected general body and failure to meet certain conditions such as mandated 15% annual increase in property tax. The issue was flagged by former mayor
Dayashankar Tiwari
at the recently concluded 16th Finance Commission meeting held in Mumbai.Tiwari, who represented the city, highlighted the growing financial burden on
Nagpur Municipal Corporation
(NMC) due to its high share in central govt-funded projects. He cited the Rs900 crore
Pora River Pollution Abatement Project
where NMC's share is 50% (around Rs479 crore). To meet this obligation, NMC is taking a loan of Rs450 crore, despite the project having a three-year completion timeline. In contrast, under the Rs1,927 crore
Nag River Pollution Abatement Project
, NMC's share is only 15% (around Rs290 crore), and with an eight-year deadline, the civic body may be able to manage its contribution more comfortably.
Against this backdrop, Tiwari urged the commission to reduce NMC's share in future centrally-funded projects to ease fiscal pressure on the corporation.Under the 15th Finance Commission, the central govt sanctioned Rs243.70 crore for the city's Air Quality Improvement Programme and Rs 357.27 crore for water and sanitation works.
However, only Rs132.60 crore was released for air quality projects and Rs198.44 crore for water and sanitation — both before the NMC's general body was dissolved on March 4, 2022. The remaining Rs270.93 crore — Rs111.10 crore for air quality and Rs 158.83 crore for sanitation — has not been released since.Tiwari argued that eligibility for 15th Finance Commission funds required the presence of elected representatives and a 15% annual hike in property tax. However, municipal elections have not been held in Maharashtra since 2022, and administrative limitations — including staff deployment for Lok Sabha and Assembly elections, and manpower shortages — prevented the mandated tax hike.As a result, NMC did not receive grants under the 15th FC for the years 2023-24, 2024-25, and 2025-26. Tiwari urged the commission to relax such stringent conditions, arguing that cities should not be penalised for circumstances beyond their control. He called for a more flexible policy to ensure essential public projects are not stalled due to technical non-compliance.
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