HYDERABAD: In a significant relief for the Greater Hyderabad Municipal Corporation (GHMC), which has struggled with debts for years, the state government has agreed to assume liabilities totaling Rs 5,000 crore.
This decision is anticipated to strengthen the debt-laden municipal corporation financially. Most of these liabilities resulted from projects including flyovers under the Strategic Road Development Programme (SRDP), the Comprehensive Road Maintenance Programme (CRMP), stormwater drainage improvements, and various urban development initiatives.
“After assessing the existing debts, liabilities, and assets, it was recommended that the state government take on these long-standing financial commitments. This initiative is aimed at relieving the pressure on the newly formed corporations. The state aims to clear these debts by the end of this year,” stated Jayesh Ranjan, special officer for three municipal corporations, in an interview with TOI.
Currently, GHMC faces a debt of Rs 4,800 crore, paying Rs 180 crore per month in principal and compound interest to various financial institutions. This debt has been accrued through municipal bonds, term loans, and borrowing from financial entities, with a large share dedicated to the construction of flyovers and underpasses.
Previously, there was a proposal to distribute the debt among the Greater Hyderabad Municipal Corporation (GHMC), Cyberabad Municipal Corporation (CMC), and Malkajgiri Municipal Corporation (MMC) based on project locations and loan usage. Before the trifurcation, the former GHMC garnered annual revenues of about Rs 4,000-Rs 5,000 crore from property taxes, town planning fees, trade license fees, advertisement revenue, estate income, and mutation charges. Of this, approximately Rs 700 crore yearly was designated for debt repayments.
