Chennai Corporation defers new infrastructure projects, cancels tenders worth more than ₹600 crore
The Greater Chennai Corporation (GCC) has deferred several new infrastructure projects, cancelled tenders worth over ₹600 crore, and stepped up its property tax collection drive
The Greater Chennai Corporation (GCC) has deferred several new infrastructure projects, cancelled tenders worth over ₹600 crore, and stepped up its property tax collection drive, as it seeks to ease financial pressure arising from pending bill payments of about ₹2,000 crore. GCC Standing Committee (Taxation and Finance) Chairperson Sarbajaya Das said no new tenders for large-scale projects were being floated currently. “Only projects already under way, including those under the Vada Chennai Valarchi Thittam, are continuing. Many new projects have been stalled,” she said. Further, the annual ward maintenance funds, which were reduced from ₹10 lakh to ₹5 lakh per ward in recent years, for civic repairs and sanitation, have also not been released by the civic body.
So, many damaged buildings, such as urban primary health centres (UPHCs), are yet to be repaired, Ms. Das said. A senior GCC official told The Hindu: “Tenders worth around ₹600 crore-₹700 crore, including the proposed Velachery bridge project, had been cancelled, mainly to stagger expenditure and improve planning. Some limited tenders were cancelled because they were floated with only a 24-hour notice period, which is a procedural violation.” In addition, capital-intensive projects will be re-tendered after cash flow improves, he said. However, revenue-generating projects, such as pedestrian plaza improvements and multi-level car parks, will continue, as will grant-backed schemes, he clarified.
The GCC faces a ₹2,000-crore backlog in bills, hence these measures were taken, according to the official. Boosting tax collection After a meeting with Assistant Revenue Officers, Senior Revenue Officers, and bill collectors on July 1, the GCC launched a special property tax collection drive, extending collection hours from 8 a.m. to 6 p.m., to expedite tax collection and settle bill arrears. The civic body is also working towards improving its credit rating to access non-sovereign lending, including from the Asian Development Bank, the official added. Meanwhile, a senior official in the Bus Route Roads Department said several tenders for road and footpath works had been cancelled mainly due to a sharp increase in bitumen price, making contractors unwilling to carry out works at older rates.
“After completing nearly ₹100 crore worth of roadwork this year, tenders for another ₹100 crore have been put on hold. Fresh blacktop road relaying has largely been deferred until bitumen price stabilises, though cement concrete roads, footpaths, and interlocking paver block works are continuing. Roads that have already been milled have been prioritised for immediate relaying,” the official added.
The BriefWire