Debt burden of Corporation gets heavier
With the Budget 2016-17 estimating that Greater Chennai Corporation
would receive loans to the tune of Rs. 1,400 crore, the debt burden for
the civic body is bound to increase further.
In terms of loans, the new financial year signifies a considerable jump
for the civic agency, which took loans, amounting to only Rs. 884 crore,
in 2015-16.
Officials said the jump in the loan component is the result of having to
carry out several civic infrastructure projects. According to them, 171
projects are pending.
Another factor that has contributed to dependence on loans, officials
said, is the decision to keep property tax rates unchanged.
The civic body is expected to collect property tax of Rs. 650 crore in
2016-2017. According to estimates made by the Revenue Department, the
property tax revenue could touch Rs. 2,000 crore after all the buildings
are reassessed and the property tax fixed in accordance with their real
dimensions. In 2016-2017, the civic body would have to pay Rs.138.15
crore as interest on loans.
Giving a picture of where these loans will
be coming from, the civic body will get Rs. 50 crore from TUFIDCO, Rs.
350 crore from TUFIDCO-MIDF, Rs. 100 crore from TNUDF-KfW, Rs. 100 crore
from HUDCO, Rs. 250 crore from the World Bank, Rs.250 crore from ICICI
Bank and Rs. 300 crore from Indian Bank.
Mayor Saidai Duraisamy said the infrastructure would improve after
pending projects were completed. Congress Councillor P. V. Tamilselvan
said the civic agencies lacked coordination in the implementation of
projects, which had resulted in delays.
Operation and maintenance
expenses are expected be Rs. 798 crore, which signifies a drop from the
previous year but is still high enough to cause concern.
Road cuts in
various areas, including Alandur, Madhavaram, Perungudi, Sholinganallur
and Adyar, are said to a factor contributing to this.
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