ONGOLE: The Ongole Municipal Corporation (OMC) has decided to construct new shopping complex buildings at key business locations across the city to generate more revenue and reduce its mounting fiscal burden.
With interest on previous bank loans piling up, OMC authorities have begun exploring alternative income sources.
As part of this effort, they have prepared a plan to build new shopping complexes in major commercial centres within Ongole city limits to earn revenue through rents and lease amounts. For Phase I of the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) works, the OMC spent Rs 60 crore as its 50% share of the project, which it raised as a bank loan with a government guarantee.
The corporation must pay about Rs 80 lakh per month as interest. As interest dues remained unpaid for a long period, the amount accumulated and has now become a burden of Rs 12 crore.
In addition, the OMC has pending dues of Rs 2 crore under Library Cess and another Rs 3.5 crore owed to water tanker owners. To overcome the loan and interest burden, OMC authorities have initiated plans to construct new shopping complexes at several prime locations, including the Addanki bus stand area, Lawyer Peta–Rythu Bazar centre, Nellore bus stand area, Rangarayudu tank to Bandlamitta road locality and other business hubs where the corporation owns land and old buildings.
Recently, the OMC also approved budget proposals of Rs 233 crore for the next financial year, covering various development projects. “In the recent budget proposals, we have also estimated additional income through vacant land tax and other sources, and the budget has increased by Rs 55 crore compared to the previous year. If we execute the plan efficiently, we will generate more income in the coming years,” OMC authorities said.
“We have planned to construct around 200 to 250 new shops at various busy business locations in the city, with an estimated income of Rs 3 crore per annum to reduce the financial burden on the OMC. All these shopping complex construction works will be completed within one year,” an OMC officer told TNIE on Tuesday.