Several projects of GHMC may be shelved for want of funds

In the recently passed State Budget for the year 2023-24, the allocations to GHMC were paltry and nothing to speak of

Several development works proposed in the city under various important projects of GHMC may head for cold storage till the completion of election process, or even beyond, if the paltry budget allocations to the corporation are any indication.

GHMC has prepared proposals worth ₹5,000 crore for phase-II works of the Strategic Road Development Plan (SRDP) and Strategic Nala Development Programme (SNDP) together, respectively for signal-free flow of traffic and improvement of stormwater drainage network in the city. Also readied are the proposals for inclusion of more stretches of roads for private maintenance under the Comprehensive Road Maintenance Programme (CRMP).

Majority of the works taken up in the phase-I of SRDP have been completed, and the remaining could come to a closure by the year end or in the first quarter of the next year. The first phase of SNDP too will be completed by March-end, say officials, save a few components which could take longer.

Both the projects have been largely funded through bank loans, with government hardly releasing even the rightful funds accruing to GHMC. For phase-I of SRDP alone, the GHMC had availed over ₹3,000 crore bank loan besides issue of bonds worth ₹495 crore.

In addition, the municipal corporation has availed close to ₹1,500 crore loan for the first phase of the Comprehensive Road Maintenance Programme (CRMP), and reportedly about ₹650 crore for the SNDP first phase.

“We could lug on based on our solvency thus far, though there was no support from the government. We have come to the end of our loan eligibility now, and cannot carry on with the projects unless supported by the government,” said an official under the condition of anonymity.

One way to bounce back into the credit market is to bolster the finances by broadening the revenue base through enhancement of the property tax, trade licence fee and other collections. GHMC has been woefully lagging behind on this front, unable to exact tax/licence fee from a large number of defaulters. Even larger is the number of property owners paying far less tax than they ought to, thanks to the rampant illegal constructions.