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This is an archive article published on July 24, 2010

MCD asks for Rs 4,500 cr

That the Municipal Corporation of Delhi (MCD) is facing a huge cash crunch is no secret. The civic body has been struggling to pay salaries to its employees...

‘Money needed to fund projects,pay salaries,boost morale’

That the Municipal Corporation of Delhi (MCD) is facing a huge cash crunch is no secret. The civic body has been struggling to pay salaries to its employees and,as per its own admission now,is yet to release 60 per cent of arrears of the Sixth Pay Commission pending since August 2008.

The MCD’s recent demand of over Rs 4,500 crore from the Delhi government has,however,surprised many.

In a four-page letter to Delhi Chief Secretary Rakesh Mehta on Thursday,Municipal Commissioner K S Mehra said while the Corporation was making every effort to “augment its internal revenue resources and to curtail expenditures without hampering development work”,it requires a grant of Rs 3,539 crore and another Rs 1,000 crore in loan to pay salaries,fund various Games-related projects and compensate for its poor property tax collections.

The Commissioner has further said if granted financial help,the MCD will be able to “proceed on a clean slate” and the same will go “a long way in boosting the morale of the agency”.

According to MCD officials,though the Corporation has been receiving funds from both the Delhi government and the Centre for projects directly linked to the Games,a “lot of the MCD’s own funds were being utilised for projects that are not directly linked to the sporting event,prompting the need for additional funds”.

The MCD has sought a one-time grant of Rs 1,080 crore to settle its Sixth Pay Commission arrears,revealing that it is yet to pay arrears worth Rs 650 crore. It has sought Rs 1,254 crore to cover for the shortfall in its property tax collection. An additional requirement of

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Rs 597 crore has been made by the MCD to finish projects relating to roads and schools.

“We have also asked the government to increase our global share,under which it owes us around Rs 300 crore. We have also sought Rs 600 crore under education head. We demanded Rs 922 crore under Plan Head of which only Rs 317 crore has been given,” said Subhash Arya,Leader of MCD House.

Jai Kishan Sharma,Leader of Opposition in the MCD,criticised the BJP for “poor planning that led to the present financial mess”. Sharma has demanded a written explanation from the BJP for the “causes that led to the current crunch”.

Meanwhile,Finance minister A K Walia asked MCD officials to take action and file FIR against those found defacing public property.

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