The visit of Municipal Administration and Urban Development Minister M. Mahidhar Reddy has resulted in more disappointments than sops to the city.
The dreams of people of Vijayawada are shattered with the Minister saying that there is no proposal to create Greater Vijayawada Municipal Corporation. The government is also not keen on paying salaries of VMC employees through treasury under 010 Head, he says.
The good news is that the government has underscored the need to announce a bailout package for the city.
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The State government is working out on a bailout package for the Vijayawada Municipal Corporation.
The first spell of funds under the package will be released very shortly, he said.
“The government has understood the need for a package for the VMC. We will release funds in the next three to four days,” said the Municipal Administration Minister.
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He was in the city to lay foundation for a green building to be constructed by Vijayawada, Guntur, Tenali, and Mangalagiri Urban Development Authority (VGTUDA) here on Saturday.
Speaking to reporters the Minister said in fact the corporation had implemented the projects more than its capacity.
The works like Under Ground Drainage (UGD) and restoration of roads have come to a halt due to paucity of funds.
The VMC has to pool up funds as its share.
In view of the financial crisis and taking the appeals of the elected representatives into consideration, the government has taken this decision, he said.
The Minister, however, was reluctant to disclose the details of the package and the amount of first phase funds. “I will let you know how much funds will be released, as and when I ink the file,” he said.
“As per the JNNURM guidelines and conditions, the mission cities – Vijayawada, Visakhapatnam, and Hyderabad – would have to generate their own resources and meet the expenditure including salaries,” the Minister said. Despite, the government would explore whether there were any other options, he said.
The government would have to take the geographical aspects, city requirements etc. into consideration if there are any such proposals on Greater Vijayawada, he added.