HYDERABAD: Reeling under severe financial crisis, the Greater Hyderabad Municipal Corporation (GHMC) has made it clear to the state government that it is not in a position to release a whopping `273.38 crore to the Telangana State Road Transport Corporation (TSRTC) for the current financial year 2016-17.
The GHMC Standing Committee, which met here on Thursday, deliberated upon its present precarious financial status about yearly reimbursement to the city regions of TSRTC and came to the conclusion
that the civic body can no more release the yearly amount to compensate the losses
incurred by RTC.
In the last financial year (2015-16), GHMC released `336.40 crore to RTC’s city region in two phases — `137.95 crore and ` 198.45 crore — to overcome losses. The amount was released as per the directive of Chief Minister K Chandrasekhar Rao. The department of municipal administration and urban development (MAUD) urged GHMC to examine the reimbursement proposal for an amount of ` 273.84 crore towards the financial losses sustained by the city region of TSRTC for the current financial year too.
The managing director of TSRTC requested the state to arrange for release towards the financial loss sustained by TSRTC in GHMC limits. However, the GHMC informed the state that it was in a financial crisis in view of the additional burden caused by increase in salaries and pensions due to implementation of revised pay scales-2015 and also enhancement of wages to the outsourcing employees to the tune of `330 crore.
Moreover, funds from the central and state governments, which are to be released to the GHMC, are still pending.
Besides, GHMC has taken up recarpeting of roads damaged in the recent heavy rains at a cost of `500 crore, Strategic Road Development Plan (`100 cr), improvements and construction of nalas and storm water drains (`300 cr), slum free programme by constructing 2BHK houses in Greater Hyderabad limits (`353.50 cr). It proposes to take a loan of `483 crore from the Housing and Urban Development Corporation Limited (HUDCO) for completing works pending under JNNURM and VAMBAY housing.