GHMC, which is mired in debt, is preparing to borrow for another project. Finance department officials are in talks with several banks for a loan of at least 500 Crore in the wake of a lack of funding for new projects. The government has focused on the development of Nala to stop inundation during the floods. To this end, a special unit has been set up under the Strategic Nala Development Program (SNDP).
The government has also issued administrative clearances for the first phase of the Rs 858 crore project. While the tender process for works in many places has been completed, in some zones, there is no response to the tenders. So, re-notification is being announced. So, GHMC has recently decided to take a loan due to a lack of funds for the project.
Rs 10,000 crore is required for the development/expansion of Nalas to improve the flood drainage system in the city. It is almost impossible to spend that amount all at once. GHMC has launched an exercise to mobilize the required amount through self-financing resources in the absence of government funding for the project.
Officials are in talks with representatives of various banks in order to get the loan. Finance ministry sources said it expects to borrow at least Rs 500 crore. The orders state that the impact fee collected during the issuance of building permits on commercial corridors recently announced by the municipality should be utilized for SNDP works. It is estimated that this could fetch around Rs 120-150 crore annually. The impact fee will be shown as a source of income and the loan will be taken.