Lokmat News Network
Chhatrapati Sambhajinagar:
Out of the Rs 2,740 crore total expenditure for the city's new water supply scheme, the Municipal Corporation’s share of Rs 822 crore is to be funded through a loan from Hudco (Housing and Urban Development Corporation). However, the monthly instalment on this loan is expected to be around Rs 17 crore, a significant financial burden for the cash-strapped municipal body.
Considering this, the Chhatrapati Sambhajinagar Municipal Corporation (CSMC) has requested a reduction in interest rates and a four-year moratorium on loan repayments during a recent meeting with the state government. Due to the corporation’s strained financial condition, they also proposed that the state should directly allocate the Rs 822 crore, or at least offer the loan at a concessional interest rate. A meeting in Mumbai, chaired by Deputy Chief Minister Eknath Shinde, discussed this issue.
Municipal Corporation Administrator G Sreekanth urged that the loan interest rate be brought down from 8.90 per cent to 8.50 pc stating that local self-governing bodies should receive loans at favourable interest terms. While the corporation is ready to repay the loan in Rs 17 crore monthly instalments, Sreekanth insisted that a four-year grace period be provided to allow time for financial planning and budget allocation (before repaying the instalments).
Water Tax Likely to Rise
Once the new water supply scheme is implemented, the city is expected to receive a 24x7 water supply, with water meters installed on every connection. This could lead to an increase in water taxes. However, the administration hopes that with daily water access, citizens will be more willing to pay the revised water tax compared to the earlier irregular supply system.