Hyderabad: In a major relief for the Greater Hyderabad Municipal Corporation (GHMC), which has been reeling under debts for years, the state govt has decided to take over liabilities amounting to Rs 5,000 crore.The move is set to transform the debt-ridden municipal corporation into a fiscally stronger civic body. A majority of the liabilities were incurred while executing projects such as flyovers under the Strategic Road Development Programme (SRDP), Comprehensive Road Maintenance Programme (CRMP) initiatives, stormwater drain works and other urban development activities.“After reviewing the debts, liabilities and assets, it was recommended that the state govt assume these long-pending financial obligations. This move is aimed at easing the burden on the newly formed corporations. The state is expected to clear these debts by the end of this year,” said Jayesh Ranjan, special officer for three municipal corporations, to TOI.Currently, GHMC carries a debt burden of Rs 4,800 crore and pays Rs 180 crore per month towards principal and compound interest to various financial institutions. The civic body accumulated these liabilities through municipal bonds, rupee term loans, and borrowings from financial institutions. A significant portion of these funds was allocated to the construction of flyovers and underpasses.Earlier, there was a proposal to divide the debt among the Greater Hyderabad Municipal Corporation (GHMC), Cyberabad Municipal Corporation (CMC) and Malkajgiri Municipal Corporation (MMC) based on the geographical location of projects and loan utilisation. Before the trifurcation, the erstwhile GHMC generated annual revenues of approximately Rs 4,000-Rs 5,000 crore through sources such as property taxes, town planning fees, trade licence fees, advertisement revenue, estate income and mutation charges. Of this, nearly Rs 700 crore per year was allocated towards loan repayments.
