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Next civic body to repay loan of Rs 1100 crore!

By Lokmat English Desk | Updated: March 24, 2025 20:30 IST

Lokmat News NetworkChhatrapati Sambhajinagar:The municipal corporation does not have the funds to contribute its share of Rs ...

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Lokmat News Network

Chhatrapati Sambhajinagar:

The municipal corporation does not have the funds to contribute its share of Rs 822 crore towards the new water supply scheme project. In addition, approximately Rs 800 crore is being spent on laying drainage lines to make the city free from septic tanks. For this project, the municipal corporation will also have to contribute Rs 265 crore. Moreover, the Central and State Governments are not providing any financial assistance. As a result, the municipal corporation has no option but to take a loan of nearly Rs 1100 crore. In the future, the situation may become such that the future public representatives (corporators) will be responsible for repaying this debt.

Under the Central and State Government’s Amrut-2.0 scheme, drainage lines will be laid in new colonies in all three assembly constituencies of the city, including Satara-Deolai. Nearly 70 per cent of the work in Satara-Deolai has already been completed. The remaining project is underway, with an estimated cost of Rs 887 crore. For this project, the municipal corporation will need to contribute Rs 265 crore, which is 30% of the total cost. The financial condition of the civic body is well-known, and the contribution will be necessary. Therefore, the administration has no choice but to take a loan.

For the new water supply scheme, the State Government has already arranged for a Rs 822 crore loan through financial institutions. Now, an additional Rs 265 crore loan will need to be taken for the drainage project. Even if a loan of Rs 1,087 crore is obtained, it will need to be repaid over the next few years. In the coming years, the municipal corporation will have little to no funds available for development works, leaving future corporators in a difficult financial situation.

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