HYDERABAD: The cash-strapped Greater Hyderabad Municipal Corporation (GHMC) has asked the state government to clear outstanding dues or directly service loans taken by the civic body for infrastructure projects.
Official sources said the dues payable to GHMC by the state government are estimated between Rs 5,000 crore and Rs 5,500 crore. These include property tax arrears on government-owned properties, about Rs 2,500 crore towards stamp duty share, Rs 150 crore in mutation fees and other statutory transfers.
GHMC has raised loans from nationalised banks and financial institutions to fund projects such as the Hyderabad City Innovative and Transformative Infrastructure (H-CITI), Strategic Nala Development Programme (SNDP) and Strategic Road Development Programme (SRDP). The corporation’s total outstanding debt is estimated to be between Rs 4,800 crore and Rs 4,900 crore.
GHMC paying Rs 2,000 cr per year to service debts
Officials said GHMC has written to the state government requesting that, in view of the pending dues, it either clear the arrears or take over servicing the loans raised for infrastructure works.
Annual debt servicing by the civic body is estimated at around Rs 2,000 crore. Officials warned that continued delays in clearing dues could affect GHMC’s ability to fund development works across the city.