The decision by the state government to cut short the maintenance fund and the final instalment of the Plan Fund will further hinder the development activities of the Corporation which is facing severe financial crunch.
The state has decided to cut down the Plan Fund allocation as it has to provide funds for the Corporation to acquire land for the proposed sewerage treatment plant.
Meanwhile, the authorities have decided to convey their concern over the decision to cut short the Plan Fund to the Minister for Urban Affairs.
“A team led by Mayor Tony Chammany will visit the capital city next week. It was also decided to submit a memorandum to the Minister requesting him to reconsider the decision as it will affect the development activities undertaken by the Corporation,” said a top Corporation official.
As per the decision, the government will not allocate `2.5 crore, the final allotment for the Corporation. Among this nearly `2 crore is reduced from the general fund while the remaining `50 lakh will be deducted from the SC/ST Fund.
Earlier, the state government had cut short the eight instalments from the maintenance fund. Nearly `4 crore was supposed to be allotted under the maintenance fund.
Another issue is that the Corporation had to finish all the works under the Plan Fund before March 31. The fund allocation is usually done on the basis of the total work carried out and the funds utilised.
The amount will get lapsed if the Corporation fails to complete the projects within the stipulated time and it will lead to a cut in Plan Funds in the coming years.
The problem faced by the civic body is mainly because of its decision to re-tender the 180 projects under the People’s Plan Programme. Projects worth nearly `25 crore were re-tendered last month and it would be a Herculean task for the civic body to complete the entire 300 work under the People’s Plan Fund before the end of this month.