South Delhi Municipal Corporation (SDMC) has asked the Ministry of Urban Development (MoUD) and Delhi Government to release all grants. The corporation is reeling under severe cash crunch and finding ways to recover its financial health.
After the implementation of the ‘Unit Area Method’
in 2004, then Delhi Government assured the corporation of making good the losses but the assurances made have been on hold since 2005-06.
SDMC had written a letter to the Urban Development Minister, GNCT of Delhi for immediate release of all grants under various heads.
The SDMC Standing Committee Chairman Subhash Arya said that till 2007-08, Delhi Government was giving 5.5 per cent to the municipal corporations under ‘Global Share of Taxes’. It was reduced to 4 per cent and 1.5 per cent assigned under ‘Municipal Reform Fund’.
In 2012-13 under MRF, Rs60 crore was released against a demand of Rs135 crore and since 2013-14, no MRF was released to the municipal corporations. Arya demanded immediate release of MRF to the corporation.
Arya said while corporations are carrying
out work in authorised or unauthorised colonies and rural villages, no grants have been released under these schemes as yet.
He added that under the plan schemes, multi-
level parking, roads, schools, community centres, RUBs, bridges are made, but Government failure to
release funds timely is delaying projects.