Cash-strapped AMC worries over funds to invest share in new water supply scheme

Aurangabad:

The Aurangabad Municipal Corporation (AMC) has to invest Rs 822 crore as its 30 per cent share in the new water supply scheme of valuing Rs 2,740 crore. The civic administration is however worried about raising the funds for the scheme as it only few crores are left in its exchequer.

It may be noted that the Central Government and the State Government had released partial funds of Rs 160 crore to the AMC, way back in 2009, to implement the parallel pipeline project. The project implementation was delayed, therefore, the civic authorities fixed deposited the fund in a bank and earned Rs 175 crore in the form of interest upon it. Out of the total Rs 335 crore in its exchequer the AMC transferred Rs 256 crore to the account of Maharashtra Jeevan Pradhikaran (MJP) for the implementation of the new water supply scheme. On other hand, the AMC’s dispute with its old parallel pipeline contractor Aurangabad City Water Utility Company Limited (ACWUCL) is underway before an arbitrator. So far, the AMC had paid Rs 50 crore to ACWUCL, but the legal issues are still underway. Hence the civic administration has reserved Rs 40 crore to tackle the dispute.

Earlier, the AMC had requested the state government that it is reeling under a financial crunch, therefore, its share in the new water supply scheme should be contributed to the state. However, no decision has been taken upon the plea, so far.