Pawar, chief minister Prithviraj Chavan show interest in one-time planning

In a boost to Navi Mumbai Municipal Corporation’s (NMMC) one-time planning project, the administration will be making a presentation before NCP chief Sharad Pawar, chief minister Prithviraj Chavan, deputy chief minister Ajit Pawar and senior officials from the urban development department and Cidco next week.

The plan, a brainchild of Thane guardian minister Ganesh Naik, was earlier presented before the district planning board in Thane.

“I had submitted all the CDs and material related to one-time planning to Sharad Pawar and he liked the concept. Now, I have received a call from the chief minister’s office to make a presentation. Our responsibility is to convince the state government on how we are going to repay the loans. If they are convinced, they can put in a word on our behalf to the central government, who can help us procure loan from Asian Development Bank (ADB), World Bank or any other foreign bank,” Ganesh Naik said.

The guardian minister brushed aside talks of burden on the civic coffers due to this project. “We require around Rs12,800 crore for this project. NMMC’s income through cess, property tax and development charges is around Rs1,100 crore.

These departments have been asked to plug leakages in the system and raise additional Rs400 crore. Accordingly, the income of the civic body will stand at Rs1,500 crore. Of this, we are setting aside Rs400 crore for unavoidable expenses such as establishment costs of NMMC, health, education, maintaining cleanliness in the city and transport. Another Rs100 crore is being set aside as buffer money to meet any sort of emergency. So, there will be a saving of Rs1,000 crore.”

He added, “There are 90 wards in Navi Mumbai and Rs5 crore, which is part of every ward, will be reserved for ward and city-level development. This amount works to Rs450 crore. We will be spending our own money for development of Navi Mumbai in 2013-14; the project will take off in October.”

Naik added, “On the rating chart, CRISIL has given a rating of 2-star plus. Now, we are waiting to get 3-star rating so that we can avail loan at rate of 5%.. If we ask money from any bank at this stage they will charge us 15% rate of interest.”

Naik outlined his plan saying, “With the support from the state as well as the central government we can avail finance at 5% interest. We will ask only Rs1,000 crore in 2014-15 and invest the civic body’s Rs1,000 crore collection.

Similarly, after six years, we will ask them for Rs1,000 crore and our contribution will be of the same amount. But while borrowing money from them, we will suggest that they deduct their interest first. Like that, till six years, they take interest for Rs5,000 crore; after that there will be no interest. Also, after six years, there will be no development and no loan, so we will utilise the money for the benefit of Navi Mumbai.”