GCC seeks ₹300 cr. overdraft as pending bills cross ₹2,000 crore
The Greater Chennai Corporation is seeking government approval for a ₹300-crore overdraft facility to address a financial shortfall of over ₹2,000 crore in pending bills. The funds are intended to settle payments for contractors and manage essential civic services.
Why it matters
The financial strain on the municipal body highlights challenges in urban infrastructure management and the potential impact on public service delivery in Chennai.
The Greater Chennai Corporation (GCC) Council passed a resolution during the Council meeting on Friday to seek government permission to acquire a ₹300-crore overdraft facility to manage accumulating financial liabilities.
According to the documents, the civic body had ₹2,090.11 crore in pending bills as of August 19, comprising ₹1,280.97 crore in capital bills and ₹809.14 crore in revenue bills.
The overdraft structure involves a ₹150-crore facility against fixed deposits and a ₹150-crore general overdraft for monsoon preparedness and disaster mitigation.
Funds are required for immediate liquidity to settle contractors’ bills, including civic body’s private partners for solid waste management — ₹280.21 crore due to Urbaser Sumeet, and ₹66.61 crore to Chennai Enviro Solutions and Package Six Pvt. Ltd.
The fixed deposits will be created by temporarily transferring ₹150.06 crore from ten earmarked bank accounts containing funds not expected to be required immediately.
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