The Hindu : Kerala / Thiruvananthapuram News : Corporation nod for ADB aid package

Online edition of India's National Newspaper
Friday, Jan 06, 2006

Kerala

Kerala - Thiruvananthapuram

Corporation nod for ADB aid package

Staff Reporter

CPI votes against resolution

Thiruvananthapuram: The LDF-ruled City Corporation Council on Thursday adopted a resolution approving a financial assistance of Rs.107.64 crores from the Asian Development Bank (ADB) for urban development projects. The CPI members voted against the official resolution moved by Mayor C. Jayan Babu. The Opposition UDF, however, backed the motion.

Opposing the terms of the ADB-assisted package, CPI parliamentary party leader G.R. Anil said the project would challenge the autonomy of the corporation and overload the economy of the State. He warned that the programme would lead to an indiscriminate hike in taxes. Mr. Anil argued that the corporation could reduce its dependence on external assistance by stepping up tax collection.

Earlier, moving the resolution, the Mayor said the draft of the ADB-funded Kerala Sustainable Urban Development Project was finalised after several rounds of discussions involving the Government and the local bodies.

User charges

The resolution proposed user charges for solid waste processing and treatment of waste water. Economically weaker sections will be exempted from the charges. Meters will be installed for public taps and tap committees are to be constituted to monitor consumption. Mr. Jayan Babu assured the members that the implementation of the package would be monitored by the council.

During the debate, Puthenpally ward councillor Poonthura Siraj crossed swords with the CPI, accusing the party of betraying the electorate and ignoring the development needs of the capital city. He termed the CPI stand as a show of aggression to prevent the entry of the DIC(K) into the LDF.

The former deputy mayor M. Sujanapriyan (CPI) accused the UDF Government of foisting the ADB project on the five corporations in the State and scuttling their autonomy. He proposed a sub-committee comprising council party leaders to examine the terms of the loan.

`Shoddy accounting'

Supporting the resolution, Deputy Mayor V. Jayaprakash said shoddy accounting and poor financial management would make it difficult for the corporation to tap financial institutions for assistance. He demanded better clarity on the interest and repayment conditions for the ADB loan. Mr. Jayaprakash expressed apprehension that the Government's proposal to compensate the repayment as grant would prove to be a financial liability for the corporation.

Backing the CPI, Chalai councillor Mohanan said the ADB aid symbolised the country's increasing dependency on foreign powers. He said the investment in non-productive sectors would burden the economy. The DIC(K) members supported the resolution.

Winding up the discussion, the Mayor said the corporation had decided to accept the ADB loan in the light of the absence of budgetary support for infrastructure and service delivery projects. He said the project demanded a professional approach on the part of the employees.

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