MCD officials to brainstorm solutions to raise funds

Officials of the three municipal corporations plan to get together to brainstorm solutions to raise funds – especially to find a way out to pay salaries to employees.

Of the three civic agencies, the East and North Corporations are in the red – while the north civic body is not sure whether it can pay salaries to its employees next month, the east civic agency’s employees have not been paid on time or at all for the past couple of months.
East Delhi Municipal Corporation’s Commissioner Amit Yadav said, “Officials of the three corporations will meet and discuss a way out.”

The commissioner added that the east civic agency had already cleared the salary for December. He said the corporation got grants from the Delhi government in January and it paid its employees.

The cash-strapped East Corporation needs Rs 87 crore a month to pay salaries and other benefits to its over 27,000 employees.

A senior official with the east civic agency, however, said some departments of the corporation might not have paid salaries to its staff for over three months.

No salaries

“There are over 27,000 employess working under different heads. So there’s a possibility that some of them have not got salaries from the past three months,” the official added.
The situation in the North Delhi Municipal Corporation is no different as the civic agency does not have funds to pay salaries to its employees.

This month the civic agency managed to pay only 40 per cent of its staff.
Officials are wary that lack of funds might lead to non-payment of salaries in the coming months.

The north civic agency requires Rs 170 crore a month to pay its staff, and over Rs 2,100 crore annually for disbursement of salaries.

“But the corporation don’t have funds to pay salaries next month,” said a senior official with the finance department of the North Corporation.
DH News Service