Greater Hyderabad Municipal Corporation head office at Hyderabad. | Photo Credit: File photo
The financial uncertainty that the Greater Hyderabad Municipal Corporation (GHMC) finds itself in could get worse based on the dwindling revenues indicated by the budget proposals for the financial year 2025-26.
The corporation is pressing under Rs 6,130 crore of outstanding loans till October 1, 2024, shows a resolution passed by the standing committee. On the revenue front, the revised budget estimates for the current year have reduced expected revenue by ₹1,781 crore – to a revised ₹4,157 crore from the original estimate of ₹5,938 crore.
The debt repayment component itself is estimated at ₹1,954 crore in the Revised Budget Estimates for FY 2024-25, against the actual ₹1,007 crore for 2023-24 and ₹1,664 crore from the original budget estimate for 2024-25.
The revised estimate includes interest payable on amounts raised from contractors for maintenance work. The budget proposals mention that from financial year 2023-24, contractors are being financed through TReDS, an online platform promoted by the Reserve Bank of India for MSMEs to unlock working capital by converting their receivables into cash.
However, the contractors have to bear the interest burden on the finance received through this platform, for which payment will be made by the GHMC in 180 days.
“More than ₹1,100 crore is pending with contractors from GHMC since the beginning of this year. This includes the works done for the Assembly elections due at the end of last year. Most of us are small contractors and are not able to generate working capital,” said GHMC Contractors Association general secretary M. Despite repeated attempts by Surendra Singh, Commissioner K. Ilambarthi alleged that he refused to meet the union members.
Also, the GHMC alleged that the amount of Constituency Development Programme, Special Development Fund, and MP Local Area Development Fund was not verified even months after the completion of the work.
A sum of ₹ 6 lakh is pending for digging and installing a borewell in Sahabhavna township of Nagole division, which the then MP and present Chief Minister A. Revanth Reddy was sanctioned under MPLADS in July, 2023.
“The district collector had disbursed the amount, but it was stopped in the finance department for reasons known to them,” said another contractor on condition of anonymity.
A payment of ₹ 27.5 crore is pending from the GHMC for assembly election related works, though it was sanctioned by the government.
According to Mr. Surendra Singh, an amount of 950 crore rupees is left for maintenance works like road repair, desilting of storm water drains and others. He said that the works like ‘Man Oru-Man Badi’, street lights, double bedroom housing, maintenance of park and nursery are yet to be paid.
“If this situation continues, I am afraid that there will be no bids for any work from next year,” he said.
published – Dec 26, 2024 11:51 pm IST