Major relief likely for Chandigarh civic body facing worst fiscal crisis

To help the Municipal Corporation overcome its financial crisis, the Chandigarh Administration has sought the Home Ministry’s approval for diversion of Rs 125 crore from its own earnings and savings to the civic body.

The UT Finance Department wrote in this regard to the ministry on August 14.

The Administration has devised a new way — re-appropriation of the amount — to help the MC after its earlier demand for the additional fund was turned down by the Centre.

In the letter to the ministry, the UT Finance Department says, “Please find attached herewith the proposal for re-appropriation from Head of Materials and Supplies to Grants-in-Aid (General)) amounting to Rs 125 crore.” It further says, “The re-appropriation of funds as mentioned above has been processed on the UBIS portal according to the Rule 10(9)(vi) of the Delegation of Financial Powers Rules (DFPR), 2024, considering the availability of savings within the same section. You are requested to approve the same at the earliest.”

Sources said the Administration managed to save a significant amount of money in the power segment after the privatisation of the power wing. It has sought approval to divert that amount to the MC for developmental and related works. The Administration has no power to divert the amount on its own, the sources added.

The MC is facing the worst financial crisis. It has no money even for replacing the defunct streetlights.

"I am hopeful that the MC will get the amount soon so that all developmental works, including the recarpeting of roads, are carried out," said Mayor Harpreet Kaur Babla.