Andhra Pradesh: GVMC worried over compensation blues

Visakhapatnam: The city’s beautification projects, shouldered mainly by the Greater Visakhapatnam Municipal Corporation (GVMC) prior to the Partnership Summit and the International Fleet Review, has imposed a major financial burden on it: Rs 92 crore.

The corporation has received only Rs 25 crore so far from the state government and GVMC is waiting with bated breath for the remaining funds so that it can keep its heads above the water, especially since it is only just recovering from the destruction that Cyclone Hudhud wreaked.

With delegates from various countries and the who’s who of the country attending the IFR and other events, the ultimate responsibility rested on GVMC officials. The corporation had relaid various roads that led to the IFR venues, renovated the footpaths and refurbished parks, museums and other tourist spots.

It planted trees along the highway and used carpet grass and ornamental plants to enhance traffic islands and medians, which were also spruced up with decorative lighting.

Sign boards came up at various locations. It was as though the city got a new look. It all most certainly came at a price and the officials are anxious to recover it.

A GVMC official told this correspondent that they were expecting another '25 crore within the next few days. “The government promised to release all the expenditure incurred on the beautification works,” he added.

The officials’ anxiety is perhaps justified as the compensation the corporation received for the damage that the cyclone caused was Rs 7.3 crore whereas the estimated loss ran into more than Rs 1,000 crore, and the general opinion is that there is no guarantee about the release of funds from the cash-strapped state government.

What’s more, the GVMC’s debts have swelled to more than Rs 300 crore. “If the beautification funds are not released on time, they will add to the financial woes of the corporation,” said an observer.