Telangana Govt to Clear GHMC Debt, Sanctions fund for CMC and MMC

For the Cyberabad municipal corporation and Malkajgiri municipal corporation, the government would allot Rs.500 crore each. The GHMC had raised rupee term loans, floated bonds and executed infrastructure works. With the revenue generated from property tax and building permits, salaries were paid to its employees as also sanitation and other civic works were executed. There were instances when a fund crunch haunted the corporation, denting its civic services.

However, with a positive response from the present government, the three newly formed corporations need not go through the same cumbersome task. They would have wide scope to enhance the municipal services and infrastructure in their respective jurisdictions.

“Chief minister Revanth Reddy wants to make sure these corporations do not carry the burden of debt. Hence, the government has decided to take care of the GHMC debt,” stated a corporation official.

From 2014 to 2023 , the total loans taken by the GHMC was around `7,000 crore. The money was used mostly for construction of flyovers, underpasses, road overbridges, road underbridges, revamping the stormwater drain network under the strategic nala development programme and road restoration under the comprehensive road maintenance programme.

In the previous two years, the GHMC has been paying `100 crore towards the loan amount and interest. “The pending loan amount is `4,780 crore. The `7,000 crore loan was also utilized for enhancing infrastructure in places that presently fell under the Cyberabad municipal corporation and the Malkajgiri municipal corporation,” stated a GHMC official.

“Paying off GHMC’s debt and sanctioning `500 crore each for CMC and MMC are a big relief and a positive start for these newly formed corporations,” he added.