Centre clears Rs 125 crore for cash-strapped Chandigarh MC

In a big relief to the cash-strapped Municipal Corporation (MC), the Centre has approved the UT Administration’s proposal for diversion of Rs 125 crore from its earnings to the civic body.

Punjab Governor and UT Administrator Gulab Chand Kataria handed over the approval letter to Mayor Harpreet Kaur Babla at the Raj Bhavan today. The Mayor thanked the Administrator for taking up the issue with the Centre and getting the fund approved.

Babla said she had been pursuing the matter for a long time. She even met the Union Home Minister Amit Shah over the issue. The amount will help the MC to overcome its financial crisis.

On August 14, the UT Finance Department had written to the Ministry of Home seeking its approval for the diversion of Rs 125 crore from its own earnings and savings to the civic body. The Administration devised a new way — re-appropriation of the amount — to help the MC after its earlier demand for the additional fund was not approved by the Centre.

The Finance Department requested the Centre to approve the proposal for fund re-appropriation under “Head of Materials and Supplies” to grants-in-aid (general).

The re-appropriation of funds was processed considering the availability of savings within the same section. The Administration has no power to divert the amount.

The Municipal Corporation is facing the worst financial crisis. All developmental works have come to a standstill. Roads have not been recarpeted for years.

The civic body has failed to increase its revenue despite taking multiple steps. It has no money even for replacing defunct streetlights. No new project has been launched in the past two years.