Debt servicing stares BBMP in the face
The BBMP needs to pay an interest of Rs 750 crore on its loans by December 31.
Else, the Palike’s bank accounts (which are nearly about 600, according to the CAG report) maintained in 12 different financial institutions will be frozen and considered NPA (non-performing assets), BBMP commissioner M K Shankarlinge Gowda told the Palike Council on Tuesday.
He said that the coming budget will be ‘realistic,’ unlike last year’s, when Palike faced a huge funds crunch.
With the State government’s condition to BBMP not to take up any new projects till December 2011, the commissioner said he had convinced the government that only ward-wise development work would be taken up and an amount of Rs three crore each would be allotted for new wards and Rs two crore for old wards.
Gowda said the pending projects would be taken up as spill-over in next year’s budget, when efforts would be made to prepare a ‘realistic budget’.
He said according to the Karnataka Municipal Council (KMC) Act, BBMP has to submit the draft of the budget by January 15. He would make sure to submit the budget to the Taxation and Finance standing committee by February 15.
The commissioner said the Palike needed to mobilise more funds and should expect to collect Rs 1,000 crore as property tax, followed by significant revenue generation through Akrama Sakrama and the new optical fibre cable policy.
JD(S) leader Padmanabha Reddy and Congress leader M Udayashankar asked the Mayor to withdraw 2010-11 budget. “When the Palike cannot take up any development work, what is the use of presenting an inflated budget?,” the leaders said.
About forming a TDR (transferable development rights) bank, the commissioner said the Palike’s financial health was not good enough for a tradable bank. “We already have loans from many banks. With a situation like this, no bank will agree to open a TDR bank with us,” he added.
Corporator K Chandrashekhar drew the Council’s attention to the delay by the commissioner in approving the medical fund of Rs 50 lakh.
“Corporators have become like peons as they have to personally walk to the concerned official’s office with the files to know the status of projects. Despite Chief Minister Sadananda Gowda’s ultimatum to dispose files within 15 days, files are kept pending is BBMP offices for long,” he added.
Identifying strays
On a lighter note, a corporator questioned about BBMP’s success in controlling the stray dog menace. He said strays were a menace across the city. He sought a method to identify the dogs.
Loan approved
The State government has approved a Rs 500-crore Hudco loan to BBMP to clear its interest amount. A part of the amount is expected to be released in the next 15 days.
