Nashik corporation to withdraw Rs 20 cr FD
ECONOMY & POLICY

Nashik corporation to withdraw Rs 20 cr FD

In order to fund civic works and administrative expenses, Nashik Municipal Corporation (NMC) decided to withdraw fixed deposits (FDs) worth Rs 20 crore from state-run banks.

This is 40 percent of its total FDs worth Rs 50 crore. The civic body plans to create fresh FDs for the same amount once its revenue increases and such instructions have been given to the NMC officials. The proposal received clearance from the standing committee Chairman Uddhav Nimse.

Of the Rs 20 crore, it has already withdrawn Rs 5 crore during Diwali, some of which was spent on administrative expenses like salaries and other such things. The remaining amount would be encashed as per requirement, reports suggest.

By March 2014, the civic body has to give its contribution amounting to Rs 174 crore for the various works under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

The financial condition of NMC is not so satisfactory. Hence, developmental works amounting to Rs 416 crore were approved during last year and this deficit is a huge burden on NMC.

Moreover, managing expenses for new developmental works in the current fiscal year is also a major challenge, reports suggest.

In order to fund civic works and administrative expenses, Nashik Municipal Corporation (NMC) decided to withdraw fixed deposits (FDs) worth Rs 20 crore from state-run banks. This is 40 percent of its total FDs worth Rs 50 crore. The civic body plans to create fresh FDs for the same amount once its revenue increases and such instructions have been given to the NMC officials. The proposal received clearance from the standing committee Chairman Uddhav Nimse. Of the Rs 20 crore, it has already withdrawn Rs 5 crore during Diwali, some of which was spent on administrative expenses like salaries and other such things. The remaining amount would be encashed as per requirement, reports suggest. By March 2014, the civic body has to give its contribution amounting to Rs 174 crore for the various works under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). The financial condition of NMC is not so satisfactory. Hence, developmental works amounting to Rs 416 crore were approved during last year and this deficit is a huge burden on NMC. Moreover, managing expenses for new developmental works in the current fiscal year is also a major challenge, reports suggest.

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