Chandigarh Administration allocates ₹25 crore to aid cash-strapped Municipal Corporation

In a timely move, the Union Territory (UT) administration provided a much-needed financial lifeline to the cash-strapped Chandigarh Municipal Corporation (MC). On Thursday, the UT administration released an advance grant-in-aid of ₹25 crore to enable the continuation of developmental projects in the city. This financial relief comes ahead of schedule, sourced from the ₹135-crore third instalment that was originally due in December 2023.

A welcome respite for Chandigarh Municipal Corporation

This substantial payment brings significant relief to the Chandigarh Municipal Corporation, which had faced a critical situation. On August 30, the MC had been compelled to halt tenders for various development projects until at least December. This decision was a consequence of earmarking ₹282 crore from its funds for city waste management, in compliance with the directives of the National Green Tribunal (NGT).

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The NGT's order, issued by MC Commissioner Anindita Mitra, had halted not only new projects but also those that had previously received approval. This included initiatives related to road construction, installation of paver blocks, maintenance of back lanes, and the renovation or enhancement of community centers and public restrooms. These developments were vital, especially considering the impending Lok Sabha elections next year.

Mayor's appeal and administrative response

In response to these circumstances, Mayor Anup Gupta had sought additional funds from UT Administrator Banwarilal Purohit to ensure that the city's development initiatives remained on track. The Chandigarh Municipal Corporation's budget for the fiscal year 2023-24 amounted to ₹1,886.30 crore, with an earmarked grant-in-aid of ₹555 crore from the Chandigarh administration. As of the second quarter, the MC had already received ₹310 crore of this allocation.

Mayor Gupta expressed his gratitude to UT Administrator Purohit for the timely release of ₹25 crore. With this infusion of funds, the MC can now resume the allocation of tenders for its development projects. In response, Anindita Mitra, the MC Commissioner, confirmed the immediate withdrawal of the administrative order that had temporarily suspended the issuance of new tenders. This financial support paves the way for the continued growth and progress of Chandigarh.

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