Row over GVMC bid to mortgage lands for loan to fund UGD
The decision of Greater Visakhapatnam Municipal Corporation (GVMC), the largest urban civic body in Andhra Pradesh, to borrow Rs164 crore by mortgaging lands has evoked strong protests from the Opposition parties.
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Visakhapatnam: The decision of Greater Visakhapatnam Municipal Corporation (GVMC), the largest urban civic body in Andhra Pradesh, to borrow Rs164 crore by mortgaging lands has evoked strong protests from the Opposition parties.
GVMC, which recently adopted a budget of Rs 4,319 crore for 2002-23, stated that it will take loans worth Rs 164 crore to fund the ongoing phase-II Underground Drainage Project at Gajuwaka, Pendurthi and Malkapuram. These areas are business hubs with several small, medium and large industries located in the vicinity.
CPI (M) floor leader in the municipal council B Ganga Rao told Bizz Buzz on Wednesday that despite their opposition, GVMC council is going ahead with plans to mortgage about 31 acres including 24 acres belonging to a stadium to obtain a loan. "Perhaps, GVMC has also drawn inspiration from the mortgaging policy followed by the YSR Congress Party Government," he remarked with a note of sarcasm.
The phase-II of UDD is midway through in Gajuwaka area to increase number of connections to 85,000 completing laying of sewers upto a length of 710 km.There is also a plan to supply 79 million litres per day (MGD) of treated water from 108 MGD Sewage Treatment Plant located in the area to the industries.
The budget envisages realisation of Rs 573 crore as taxes, Rs 347 crore from deposits and accounts. Rs 510 crore from water supply and Rs 276 crore as Finance Commission grant.
The Opposition corporators say the budget is a jugglery of figures and not based on actual expenditure. Ganga Rao said it has become a habit for GVMC to exaggerate the figures to give the wrong impression to the denizens. He also blamed the State Government for not releasing its share in the Rs1,000-crore smart city project, which is on verge of completion.
Jana Sena corporator P Murthy Naidu alleged that GVMC is being pushed into debt trap by facilitating mortgaging of its assets to the banks. "When it fails to repay the loans, the banks will certainly acquire the assets mortgaged to obtain funds and put them on sale," he pointed out.
Mayor G Hari Venkata Kumari, who belongs to YSRCP, dismissed allegations as 'politically motivated' and claimed that they are keen on overall development of Visakhapatnam with several bold initiatives.
