MC gets GST installments of Rs 15 cr

Sukhmeet Bhasin

Tribune News Service

Bathinda, December 10

The Municipal Corporation (MC), Bathinda, has received its GST installments of Rs 15 crore. Of the total amount, Rs 5.37 crore has been deducted as an installment of Rs 105-crore loan, which has been taken by the MC from the HUDCO.

Reacting sharply on it, the MC Commissioner has asked the bank why it deducted Rs 5.27 crore instead of Rs 3.5 crore.

It is learnt that the bank has deducted more amount this time as security. The bank is not getting grants from the state government on time.

The HUDCO has sectioned a loan of Rs 105 crore to the MC. Of the total amount, the MC has availed Rs 43.50 crore so far. In return, the civic body has managed to pay Rs 15 crore as principal amount and Rs 9 crore as interest. The MC had to pay Rs 3.50 crore to the HUDCO— Rs 1.16 crore per month.

An amount of Rs 4.92 crore of the MC is lying in the escrow account as security for the loan. The state government has barred the MC from using it and the civic body doesn’t get interest on it.

Now after receiving its GST installments, the MC will be able to give two-month salary of its employees.

MC Commissioner Sanyam Aggarwal said they had received Rs 15 crore as GST/VAT installments and of which Rs 5.37 crore had been deducted as a loan installment. He said they were expecting to get Rs 2 crore more.

The MC Commissioner said they were working to find alternatives for increasing the income of the MC.

In November, the salary of MC employees were delayed as the civic body was facing a shortage of funds. The reason behind the delay was that the MC had not received its GST installment in October.

Mayor Balwant Rai Nath said the state government should release funds for the development of the city as due to a paucity of funds, all major development works were getting delayed.

Grant to help MC pay salary to employees

• The HUDCO has sectioned a loan of Rs 105 crore to the MC. Of the total amount, the MC has availed Rs 43.50 crore so far. In return, the civic body has managed to pay Rs 15 crore as principal amount and Rs 9 crore as interest. The MC had to pay Rs 3.50 crore to the HUDCO— Rs 1.16 crore per month. 
• In November, the salary of MC employees were delayed as the civic body was facing a shortage of funds. The reason behind the delay was that the MC had not received its GST installment in October.