AMC earns interest of Rs 200 cr on water deposit of Rs 161 cr in 10 years

Aurangabad, July 10:

The Aurangabad Municipal Corporation (AMC) has earned an interest of Rs 200 crore, upon its water deposit to the tune of Rs 161 crore, in a span of 10 years. It may be noted that the union Government had released a fund of Rs 143 crore to AMC in 2009 to implement the ambitious parallel pipeline project. Later on, the State Government had released Rs 18 crore for the water project in 2011. Hence the AMC is now having Rs 361 crore in its exchequer.

The AMC has to contribute Rs 633 crore to the new water supply project (of Rs 1680 crore). Hence

the AMC is planning to seek approval from the government so as to divert the fund released for the old water project and utilise it as a share in the new water supply project. Of the total Rs 361 crore, the AMC would seek permission for utilisation of Rs 350 crore.

It may be noted that the Maharashtra Jeevan Pradhikaran (MJP) is the nodal agency for the new water supply project. It has been approved by the state government. The MJP has started waterworks of valuing Rs 1,308 crore in the first phase. The AMC's share in the first phase is Rs 633 crore. The civic body is already reeling under a financial crisis. It struggling to raise Rs 250 crore as its share in the Smart City projects. The union Government's Smart City Mission had hinted to the AMC that it would not release further funds if the AMC does not invest its share. The AMC administrator

A K Pandey has clarified that the civic administration will put in Rs 70 crore in July, while the remaining contribution will also be raised and put in soon.

According to sources, the AMC will soon be sending the proposal to the government to get an official nod to utilise Rs 350 crore, out of the total deposited money, in the local banks.