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MCD appeals to Delhi Govt to convert plan loans into grants-aid

Written by: Staff

New Delhi, July 4 (UNI) The Municipal Corporation of Delhi today appealed to the Delhi Government to convert plan loans to the tune of Rs 639.62 crore taken within the last four years into Grants-in-Aid so that the bedy could divert more money for developmental works.

Chairman of the MCD Standing Committee Jai Kishen Sharma and Leader of the House Jitender Kochar, in a letter to Delhi Finance Minister Ashok Walia, appealed him to convert plan loans into grants-in-aid so that the MCD, which is facing financial crunch, could divert more money for development works.

They also demanded that the decision to convert Grants-in-Aid of Rs 20 crore for developmental works in urbanized villages and Rs 40 crore for Rural Development Board, to loan, also be deferred.

The Chairman of the Standing Committee has written a separate letter in this regard to Lt Governor of Delhi B L Joshi.

Informing this to mediapersons, Mr Sharma said during the last four years, MCD raised loans of Rs 949.62 crore whereas the BJP in the last tenure raised loan amounting to Rs 721.52 crore.

All this money was spent on development works meant to augment civic services.

''This money has not been used for any such aim which earned income to MCD, but was spent for the welfare of the citizens of Delhi,''he said.

He said MCD had repaid loans amounting to Rs 471 crore during the last four years. In addition, the civic body has paid Rs 241.50 crore as interest on plan loans.

Mr Sharma said since this money was being spent on civic services, it was justified that these should be converted into Grants-in-Aid.

Mr Kochar said income of the civic body decreased after introduction of Unit Area Method for assessment of property tax in April, 2004 which has caused financial crunch.

''It is, therefore, imperative for public welfare that the plan loans amounting to Rs 639.62 crore be converted into Grants-in-Aid.

Similarly, the decision to convert Grant-in-Aid for development of urbanised villages and Rural Development board amounting to Rs 60 crore into plan loans should also be withdrawn so that MCD could spend more on civic amenities,'' Mr Kochar said.


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