Chennai Corporation led into debt trap, says Minister

By Our Special Correspondent

CHENNAI, SEPT. 5. The Local Administration Minister, Mr. C. Durairaj, today charged the Chennai Corporation Council with leading the civic body into a `debt trap', having resorted to heavy borrowings from different agencies in the past four years.

Though he did not name Mr. M. K. Stalin while speaking in the Assembly, the Minister accused the Mayor who was elected to head the Corporation Council in 1996, of having taken loans for Rs. 20.04 crores in 1997-98, Rs. 35.22 crores in 1998-99, Rs. 45.11 crores in 1999-2000 and Rs. 51.34 crores in 2000-01. ``I have to inform the Assembly with regret that the Corporation has been led into a irrecoverable debt situation,'' the Minister said.

Since November 2000, contractors had not been paid their dues for civic works and in such a situation no one came forward to take up other works. As on June 30, 2001, the outstanding dues to contractors were Rs. 19.39 crores. On assuming office the Chief Minister, Ms. Jayalalithaa reviewed the Corporation's precarious financial position and in an ``unprecedented gesture'' ordered provision of government funds of Rs. 33.71 crores for reviving the Corporation's fortunes.

Replying to the debate on grants for the Municipal Administration and Water Supply Department, Mr. Durairaj announced that the Government proposed to formulate a proposal for the TN Urban Development Project-III with the focus on improving urban environment and health. According to the policy note, the scheme would concentrate on urban waste management, environmental management, prevention and reduction of human and animal diseases and maintenance of open spaces and the green cover.

Public health facilities would also be given a facelift for early detection of disorders and taking up of minor surgeries. All these were expected to be included in a proposal costing Rs. 881 crores.

Listing some of the ambitious proposals, the Minister said the long-pending Hoganekkal water supply scheme with the Cauvery as the source would be evolved at a cost of Rs. 1,008 crores. A similar scheme expected to cost Rs. 850 crores, would be evolved for drought-stricken and salinity- affected areas of Ramanathapuram and Sivaganga districts. These proposals would be implemented with support from international funding agencies.

The Avinashi-Attikadavu water supply scheme to help Erode and Coimbatore areas and the Sedapatti integrated water supply scheme would also be implemented. A feasibility study would be taken up to provide a massive water supply scheme to help Vellore and nearby pockets hit by sub- soil pollution.

To cater for the sanitation needs of poor women in urban pockets, the Chief Minister ordered that a scheme be evolved to provide 400 public conveniences in 102 municipalities. Women self-help groups would be asked to maintain these facilities which would recycle and reuse water.

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