Loans and interest for Corporations, Muncipalities waived

Chennai, Apr 12 (UNI) In a bid to relieve the huge debt burden of the Corporations and Municipalities, the Tamil Nadu Local Administration Minister M K Stalin today announced a waiver of loans and interests, amounting to Rs 793 crore, owed by them to the state government.

Replying to the debate on the demand for grants for his departments, he said the waiver of principal of Rs 430 crore and interests of Rs 363 crore would provide a great relief to these urban local bodies and help them to streamline their financial positions.

As they no longer worry about the repayment of the debt, the Corporations and Municipalities, could henceforth, mobilse their resources and utilise them to provide basic facilities to the people, he said.

The government was hitherto, deducting the dues during devolution of funds to them, but most of the municipalities could not be given any fund at all after deducting the dues at source, he said.

The issue was examined by a high-level committee constituted for devolution of more powers to the local bodies and the third finance commission also recommended that the rate of interest be reduced.

However, when the matter was taken up with Chief Minister M Karunanidhi, he suggested that it would not be enough if the government cut the interest rate, but waive the entire loan and interest amount, considering the financial burden faced by these local bodies, Mr Stalin said.

Mr Stalin also made a series of announcements with regard to drinking water, solid waste management, roads, buildings, underground sewerage, slaughter houses, tsunami relief works.

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