Election code chokes funds, NMC projects may lose pace

Nagpur: With election code of conduct for state polls kicked in on October 15, the Nagpur Municipal Corporation (NMC) is grappling with a major funding crisis, putting completion of crucial state-funded projects in jeopardy. Despite high-profile announcements earlier this year, the anticipated flow of funds has not materialised raising concerns about financial liabilities and project delays.

One of NMC's key concerns is the Rs204 crore allocated for flood mitigation works sanctioned before the Lok Sabha elections but withheld by state govt. So far, the civic body has received only Rs14.51 crore, leaving essential projects — including reconstruction of damaged retaining walls along 8.41km of Nag and Pili rivers — underfunded even as they are near completion.

"The NMC will have to pay contractors engaged in these flood restoration projects, but lack of funds from the state poses a serious problem," a senior NMC official said.

The civic body has been consistently making efforts to secure funds through the district collectorate, but in vain. Now, with the election code of conduct in place, the release of state funds may be delayed further, and NMC fears that the civic elections scheduled after the state polls will impose another round of code of conduct restrictions further complicating the situation.

To safeguard itself from financial liability, NMC already incorporated clauses in contract agreements that payments to contractors will be made only after receiving funds from the state. However, these delays are mounting pressure on the civic body as the projects advance without the necessary financial backing.

Projects announced in 2023-24 financial year saw smoother fund disbursement, including Rs197 crore for Intelligent and Integrated Traffic Management System (IITMS) and Rs104 crore for Nandgram cattle shed project.

The officials claimed that freebies announced by the state govt are the major reason for NMC's funds crisis. "Apart from flood mitigation works approved in the last fiscal, even the current year's projects, such as civic amenities projects, remain severely underfunded," the officials pointed out.

In deputy chief minister Devendra Fadnavis' South-West assembly constituency, only 10% of the Rs200 crore promised for development works has been received. Similarly, in East and South Nagpur constituencies, where Rs300 crore was earmarked, the NMC has yet to receive funds.

With mounting financial obligations and no immediate solution in sight, the NMC is bracing itself for even further delays once the civic election code of conduct is imposed.