The Hindu : Andhra Pradesh / Hyderabad News : Payments halted in GHMC

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Friday, Feb 13, 2009
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Payments halted in GHMC

Bills to contractors and even payment for ads released in the media withheld

Works worth Rs. 1,200 crore in various stages of progress
‘More convenient to go in for overdraft rather than cut into FDs’

HYDERABAD: Faced with bountiful work orders issued, which has crossed even this year’s budget estimates, the Greater Hyderabad Municipal Corporation (GHMC) has been forced to stop issuing further payments, save for staff salaries.

Up to Rs. 50 crore payments to contractors and even payment for the advertisements released in the media have been withheld pending further orders, admit senior officials.

Property tax

This is despite the municipal corporation getting Rs. 270 crore as property tax till date which is at least Rs. 70 crore more, compared to last year’s figures at this time.

Indiscriminate orders

The catch is that in the current financial year work orders have been issued left, right and centre presumably to improve the pathetic civic conditions in the suburbs once they were incorporated into the civic body.

So ‘liberal’ has been the administration that allegedly works of more than Rs. 3,000 crore have been issued, mostly to municipal circles when the budget was Rs. 2,900 crore!

The same officials who sent plans and estimates to the head office from the suburbs are now conveniently throwing up their hands unable to get the works grounded or complete those started, senior officials pointed out. Works worth Rs. 1,200 crore are in various stages of progress, it is claimed.

However, when the capacity is to complete not more than Rs. 400 crore worth works within a financial year, it is incredible how GHMC wanted to wave the magic wand.

Overdraft

Faced with mounting expenditure, an overdraft of Rs. 375 crore was availed of from the SBH in order to ensure that the staff salaries (Rs. 275 crore a year) are not affected and for emergency needs.

Incidentally, the GHMC has fixed deposits of up to Rs. 500 crore and officials say it’s more convenient to go in for an overdraft rather than cut into the deposits.

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Andhra Pradesh