While the municipal corporations are facing massive cash crunch, the North Delhi Municipal Corporation (NMC) has asked for Rs7,000 crore from the Delhi Government. The Corporation also claimed that it has not been given its share from the Government since the trifurcation of the erstwhile MCD. The delay in release of money has in turn hampered the release of councillors’ funds.
Chairman of Standing Committee of North MCD Mohan Bhardwaj said that in current financial year, the Government stopped release of Rs303 crore to the Corporation. The Government had to give a total Rs994 crore while only Rs46 crore has been given yet.
“The North MCD has an estimated expenditure of Rs2,290 crore for the current financial year on salary and pension. On other hand, North DMC has liabilities of Rs1,270 crore. Thus, total liabilities come to Rs3,560 crore by March-end,” said Bhardwaj.
He also said that the South Delhi Municipal Corporation (SDMC) was utilising all the facilities and services at Civic Centre and North Delhi Municipal Corporation is bearing all the expenditure on its maintenance, so the SDMC must pay for its maintenance and rent a sum of Rs472 crore to North DMC.
He added that after the trifurcation, the former Delhi Chief Minister promised that all the three Municipal Corporations would be released grant-in-aid to compensate the loss, but not a penny has been received from the State Government on this account so far.
Previously, the SDMC had asked the Ministry of Urban Development (MoUD) and the Delhi Government to release all the grants. The Corporation is reeling under cash crunch and is trying to find ways to boost its financial condition. After the implementation of ‘Unit Area Method’ in 2004, then Delhi Government had assured the Corporation to compensate the losses due to its implementation but it is still pending since 2005-06.