Pune: Pimpri Chinchwad Municipal Corporation’s (PCMC) standing committee on Wednesday adjourned a proposal seeking approval to raise Rs1,243 crore through loans for Pavana closed pipeline project and the city’s drainage master plan. The deferral came after members raised concerns over the civic body’s financial position and its growing dependence on borrowings.The two projects together are estimated to cost around Rs2,500 crore. The civic administration has sought assistance under the Centre’s Urban Challenge Fund (UCF), which provides grants of up to 25% of the project cost. However, the scheme requires civic bodies to mobilise at least 50% of the funding through market-based sources such as loans, bonds, or public-private partnership (PPP) models.Of the estimated Rs1,400 crore cost of Pavana closed pipeline project, PCMC plans to raise Rs700 crore through loans, secure Rs350 crore from UCF, and meet the remaining expenditure from its own budget. The project, which was halted in 2012 after three farmers were killed in police firing during protests against the work, is now being considered for revival. Chief minister Devendra Fadnavis held a meeting with local public representatives and civic officials in July and asked the administration to complete the formalities required to revive it.The drainage master plan, estimated to cost Rs1,093 crore, will also be partly funded through borrowing. PCMC plans to raise Rs546 crore in loans, seek Rs273 crore from UCF, and meet the balance from its budget, a senior civic official said.Chief accounts and finance officer Satyawan Ubale said the civic body had also sought UCF assistance for four other projects — district metered area and non-revenue water project, wastewater recycling and reuse, integrated solid waste management phase II, and Moshi hospital. These projects are proposed to be implemented through PPP model and will not require funding from the civic body’s budget, he said.The proposal to raise loans, however, faced opposition from standing committee members, who questioned the need for fresh borrowing when PCMC was already facing financial constraints. The civic body, once described as Asia’s richest municipal corporation, currently has outstanding World Bank loans of Rs559 crore, officials said.Shiv Sena corporator and standing committee member Sulbha Ubale said the civic body’s revenue sources, particularly income from building permissions, had declined and the borrowing proposal needed a detailed review.“The municipal corporation first needs to increase its revenue sources and then consider taking loans. In water supply projects, priority should be given to addressing leakages, as a large quantity of water is wasted. We have also suggested that wastewater recycling and reuse should be prioritised before taking up other major projects,” she said.The standing committee also adjourned a separate proposal to provide monthly financial assistance to senior sportspersons aged 60 and above who are permanent residents of Pimpri Chinchwad. The proposal recommended Rs10,000 a month for those who had represented the country at the national level and Rs15,000 for those who had competed internationally.Week after arrest by ACB, PCMC chief engineer suspendedPimpri Chinchwad municipal commissioner on Wednesday suspended the chief engineer of water supply department, Pramod Ombhase, a week after his arrest by anti-corruption bureau (ACB) in a bribery case.Ombhase had allegedly demanded a bribe to clear files related to agreements and work orders for several projects awarded to a contractor. The projects involved the repair and maintenance of existing pipelines and laying of new ones. The signing of agreements and issuance of work orders were pending, for which he allegedly sought the bribe.
