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This is an archive article published on October 6, 1999

Only a breather, clarifies AEC

AHMEDABAD, Oct 5: By relaxing payment terms of power bill dues and restoring connections, the Ahmedabad Electricity Company AEC has all...

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AHMEDABAD, Oct 5: By relaxing payment terms of power bill dues and restoring connections, the Ahmedabad Electricity Company AEC has allowed a breather to municipalities which are gasping for financial support, but it has made it clear that it will brook no further delay.

In fact, the AEC has reminded the State Government of the commitment it made about payment of these dues, now amounting to Rs 13 crore. The AEC says it was given to understand that the 8220;government will consider the payment of bills till March 31, 1999.8221; It has also asked the municipalities to pay up their dues regularly from April onward.

The AEC says power connections were cut to drive home the point that the municipalities were responsible for prompt payment of dues. That the connections can once again be cut is not impossible. According to an AEC release, it had removed timers at water works of four municipalities to assist them in resolving the problem.

Sources in the Directorate of Municipalities say only strict financial discipline on the part of defaulting municipalities will improve their finances. A board official said loans from State funding bodies was another alternative to meet the expenses of municipalities subject to adherence to fiscal discipline.

Besides, everyone is waiting for the decision by a sub-committee headed by Vijay Ranchan, which was formed following a court directive to the State Government, to work out interpretation of a GR. This GR said subsidy for five years should be given to those local bodies which had graduated from nagar panchayat to municipality.

Unless the municipalities become self-reliant and financially disciplined, the basic objective of giving them autonomy will be frustrated, a government official said.

 

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