BMC, state spar over Rs3,000-crore loan

Money matters have now become a bone of contention between the state government and the Shiv Sena-led BMC.

Tussle cropped up when state delayed sanctioning the amount demanded by the civic body when BMC, citing shortage of funds, demanded an interim loan  of Rs3,000 crore.

A senior civic official said that BMC had sent a letter to the urban development department to sanction the money for capital work.

But the department agreed to sanction only Rs2,000 crore with the caveat that it has to be paid back within five years. This has created roadblock in several projects. 

The body had estimated an expense of Rs4,865 crore in the current financial year. Standing committee chairman Rahul Shewale feels that it isn’t possible to pay back the funds within five years. 

Civic chief Swadhin Kshatriya has written to the UDD to revisit the clause and to maintain a tenure of ten years.

The state also owes Rs106 crore to the BMC. Seventeen state departments are yet to dispense the dues. “We have been persuading the state to clear the accounts. But we have to wait for the state to take a call,” said a civic official.