Chandigarh administration seeks ₹125 crore from MHA for cash-strapped MC
₹ 125 crore funds from the material and supplies head to the grant-in-aid head, for release to the MC. (HT File)
Development works in the city have been stalled since May last year due to the financial crisis.
The proposal, prepared by the UT finance department, recommends the 're-appropriation of ₹125 crore funds from the material and supplies head to the grant-in-aid head, for release to the MC.
Officials said the re-appropriation has already been processed on the Union Budget Information System (UBIS) portal, considering available savings under the same section.
The latest demand follows repeated pleas by mayor Harpreet Kaur Babla and municipal commissioner Amit Kumar to UT administrator Gulab Chand Kataria, urging allocation of additional funds to ensure the corporation's smooth functioning.
Mayor Harpreet Kaur Babla said, 'We are hopeful of additional grants from the MHA so that development work can resume as soon as the weather conditions are suitable.'
Earlier in April, the UT administration had sought ₹238 crore from the recurring savings generated through the privatisation of the electricity department. The proposal aimed to redirect those funds to the MC, but the MHA rejected the request earlier this month, further deepening the civic body's financial woes.
The fund crunch prevented the MC from floating fresh development tenders for solid waste management, door-to-door segregated waste collection, operation of garbage transfer station-cum-material recovery facilities, liquid and sludge waste management, horticulture waste processing, road re-carpeting across V3, V4, V5 and V6 categories, maintenance of green belts, fire-fighting services, and upkeep of streetlights.
Around 250 km of city roads need urgent repair as they are in dire straits. Road recarpeting work, usually carried out during March-April and October-November due to favourable weather conditions, has remained suspended since May 2024. The civic body's annual shortfall has also affected its ability to meet basic commitments such as salaries, pensions, utility bills, maintenance works and fuel expenses.During the mayoral polls on January 30, following Harpreet Kaur Babla's victory, BJP's city president Jatinder Pal Malhotra had announced a special grant of ₹92 crore by the Centre for MC. However, it has yet to become a reality.
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