Urban local bodies get nod to borrow Rs 1,000 crore for road works

According to the GO, most roads maintained by urban local bodies in the state have been damaged due to execution of water supply and underground drainage schemes where most roads were cut open but were not repaired properly.

“In the last five years, 35 water supply schemes and 23 underground sewerage schemes have been taken up in Corporations and Municipalities through centrally-sponsored schemes like AMRUT, Smart City and other externally aided projects due to which the roads were damaged,” said Harminder Singh, Secretary, MAWS, in the GO.

It was also said in the GO that local bodies are facing financial crunch due to COVID-19 works and for running Amma canteens during lockdown. Additionally, the urban local bodies had to spend their own resources for the ongoing water supply and underground sewerage schemes.

Owing to the financial crunch, the local bodies could not maintain the roads and so, Commissioner of Municipal Administration had demanded Rs 1,000 crore, as part of Phase-I, to repair and maintain roads in urban local bodies. However, state government had granted approval for a value of Rs 1,000 crore through pooled financing raised as a loan through Tamil Nadu Finance and Infrastructure Development Corporation (TUFIDCO) from banks or financial institutions.