The Communist Party of India-Marxist (CPI-M) has launched a diatribe on the Vijayawada Municipal Corporation (VMC) for its proposals to issue Rs.250 crore bonds to complete the ongoing works taken up under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) programme.

The party also asserted that special officer had no powers to issue the bonds. Addressing a press conference here on Monday, CPI (M) city secretary Ch. Babu Rao said that the bonds were nothing but another form of loan.

The bonds would further push the VMC into debt trap. The Visakhaptnam Municipal Corporation also issued bonds sometime ago. The Visakhapatnam Corporation was now not in a position to repay money to the subscribers of the bonds. The Government also gave a counter guarantee to the bonds issued by the Visakhapatnam Corporation, he recalled.

“Ironically, the Chief Minister has already given a nod for the VMC's proposal. The Government, instead, should release the dues to the Corporation. The Government is supposed to release Rs.160 crore under the JNNURM and Rs.60 crore under non-plan grants to the VMC,” he said.

The Corporation employees had been demanding that the Government pay their salaries through treasury. Had their demand been addressed, the VMC would have saved Rs.200 crore per annum on salaries, he said.

The VMC would receive Rs.200 crore more if the government shouldered the burden of housing, he said, adding, in all the government has to release Rs.500 crore to the city. Vijayawada MP Lagadapati Rajagopal who spoke on all national issues had no concern for the city. The MLAs from the city were also mum on the issue. The public representatives should take initiative as the political pressure was required for the release of dues from the Government, he felt.

The people would not keep quiet if the VMC officials danced to the tunes of the Government. The VMC was requested to shelve the bonds proposal. The CPI(M) would launch an agitation shortly, he added.