Vijayawada Municipal Corporation will overcome financial crisis:Mayor

Vijayawada: The Vijayawada Municipal Corporation is trying to come out of financial crisis and cleared loans to the tune of Rs150 crore during the past two years, said Mayor Koneru
Sridhar.

He said the corporation was in deep financial crisis two years ago with Rs 450 crore loans when Telugu Desam party took the reins of the civic body and now the corporation is trying to streamline the financial position with the grants sanctioned by the State and Central governments and from its own resources.

He said the corporation is now not facing any difficulty for payment of salaries to the staff and also executing development works worth crores of rupees.

The Mayor, along with deputy mayor G Venkata Ramana and other corporators, addressed a media conference at his chambers on Saturday on the occasion of completion of Telugu Desam Party’s two years rule.

He said the corporation has cleared Rs 156 crore during the two years and trying to clear more dues in a phased manner. He said Rs 10.85 crore paid to regular employees, Rs 18.40 crore paid to retired employees, Rs 75.82 lakh dues of municipal contractors cleared, Rs 46.12 lakh loans cleared and other payments related to DA arrears, increments and earned leave arrears paid to the staff.

He recalled that the corporation was plunged into deep financial crisis two years ago and attempts were made to mortgage the properties of the corporation.

He said the financial condition has improved considerably and the corporation has taken up the development works worth Rs 334.16 crore during the last two years.

He said that underground drainage pipelines and drinking water pipelines were laid at a cost of Rs 40.40 crore with 13th Finance Commission funds, works worth Rs 105 crore taken up with special Krishna Pushkaralu grants, Budameru outfall drain works completed with Rs 42 crore, drinking water reservoirs were constructed at a cost of Rs 22.60 crore with 14th Finance Commission grants.

He said that the second floor of the NTR shopping complex works are going on with Rs 9.97 crore and tenders were called for the construction of new VMC building with Rs 32 crore.

The Mayor said that additional class rooms were constructed in the VMC schools with Rs 11 crore sanctioned from Sarva Siksha Abhiyan grants, proposals are made for the development of Mahanadu road with Rs 9 crore.

Sridhar said Rs 42 crore was spent for laying new pipelines on canal road due to the construction of Durga temple fly over works. He said that Rs 19.84 crore was spent for the development works under the SC/ST Sub- plan and proposals were made to get another Rs 22 crore under the same SC/ST Sub-plan.

Asked about the financial status of the corporation, he said that the development works are going on as there is no problem for the payment of salaries to the civic staff regularly. He said that the corporation is trying to increase its annual tax revenue from Rs 86 crore to Rs 95 crore.