HYDERABAD: The Municipal Administration and Urban Development Department will work out details of dues towards salaries and pensions to employees of urban local bodies and propose a one-time budgetary support in the State budget of 2007.

This was decided at a review meeting convened by Chief Minister Y.S. Rajasekhara Reddy on the general financial conditions of municipalities in the State on Thursday. The move will wipe out the dues for all municipalities in the State and enable them to take up development works on the strength of their own revenues.

Dr. Reddy reviewed the water supply scheme of Hindupur Municipality, including that of the Industrial Local Area (Autonagar) in the municipality with senior officials. It was decided that tenders for the schemes would be called and the extra cost would be shared between AP Industrial Infrastructure Corporation and the department.

For Kandukur, the Chief Minister was informed that tenders had already been floated and that work was in progress except for the service reservoir for land acquisition. He asked the department to coordinate with the Prakasam District Collector and see that the land acquisition issue was sorted out with the Endowments Department.

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