Cash-strapped MCD gets Rs 1,500 cr help from govt

NEW DELHI: The cashstrapped Municipal Corporation of Delhi ( MCD) has finally managed to secure a sum of Rs 1,490 crore from Delhi government as the first installment of its initial demand of Rs 4,500 crore.

This money will, however, not be used to fast-track Commonwealth Games projects, according to mayor P R Sawhney. The civic agency said it will wait for the second installment to fund its various Games projects.

According to Delhi mayor P R Sawhney, Delhi government will release the amount on Tuesday. ‘‘MCD will receive Rs 390 crore to fund its non-plan expenditure, another Rs 500 crore to fund its plan expenditure and it will receive Rs 100 crore as grant. MCD will further be given a sum of Rs 500 crore in the form of a sanctioned loan,’’ said Sawhney.

MCD claims that it will use the amount to immediately pay the 3,000 contractors who are currently on strike demanding pending salaries. Besides this, it will use the funds to pay pension amount due to the elderly, widows and the physically handicapped for a period of three months.

The remaining amount will be used to pay discretionary funds to its councillors. In January this year, MCD had passed a resolution to pay discretionary funds ranging between Rs 1 crore and Rs 3 crore to each member of its deliberative wing for funding various projects at their respective levels.