State to grant soft loan of Rs 822 crore to CSMC !

Lokmat News Network

Chhatrapati Sambhajinagar:

If the sources are believed, the State Government would be granting a soft loan of Rs 822 crore to the Chhatrapati Sambhajinagar Municipal Corporation (CSMC) to contribute its share in the new water supply scheme. However, the municipal corporation will have to pass through a litmus test in the form of fulfilling terms and conditions.

According to sources, “The government has made it clear, citing a policy decision, stating that at any cost the CSMC will have to put in its own share.

It may be noted that the estimated cost of the water project is Rs 2740 crore. The project works are being done by the contractor under the supervision of Maharashtra Jeevan Pradhikaran (MJP).

The Central Government and the CSMC will have to put in 30 per cent share each while the state government will have to put in 45 per cent. So far, the Central Government and the State Government, both had released a fund of Rs 1721.20 crore. However, the CSMC was unable to contribute its share as it is reeling under financial crisis. Hence the CSMC administration was corresponding with the state government to grant its share. The public representatives also pursued the matter, but the state government made it clear that it could not grant to the CSMC or else it will have to grant funds to all municipal corporations. Meanwhile, the state government has hinted at granting a loan of Rs 822 crore to CSMC. The government will be putting tedious terms and conditions. The measures to make the CSMC financially self-reliant will also be undertaken, said the sources.