The Hindu : New Delhi News : Appeal to convert plan loans into grant-in-aid

Online edition of India's National Newspaper
Wednesday, Jul 05, 2006

New Delhi

New Delhi

Appeal to convert plan loans into grant-in-aid

Staff Reporter

MCD has raised loans worth 949 crore

NEW DELHI: Ruling Congress Councillors have urged the Delhi Government to convert plan loans, given to the Municipal Corporation of Delhi for carrying out development works in the Capital during the past four years, into grant-in-aid.

Stating that the civic body was facing a financial crunch, particularly due to fall in property tax collections over the past couple of years, MCD Standing Committee Chairman Jai Kishan Sharma and Leader of House Jitender Kochar have appealed to Delhi Finance Minister A. K. Walia to convert plan loans to the tune to Rs.639.62 crores into grant-in-aid so that more money could be diverted towards various development works.

Both the leaders, who have also written letter to Lieutenant-Governor B.L. Joshi containing the same demand, said during the past four years, MCD has raised loans worth Rs.949.62 crores which is being spent on various development works.

"While loans amounting to Rs.471 crores has been repaid, the civic body has also given Rs.241.50 crores as interest on these loans. Since the money is being spent on civic services and development of the city, it is justified that such loans should be converted into grant-in-aid," Mr. Sharma demanded.

Further pleading the civic body's case, Mr. Sharma said the income of the civic body has decreased after introduction of unit area method . Therefore, the Delhi Government should convert the loan into grant-in-aid, he added.

Similarly, Mr. Kochar also urged the Delhi Government to defer its decision to convert grant-in-aid of Rs.20 crores for development works in urbanised villages in the Capital and Rs.40 crores for the Rural Development Board into loan.

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