NMC faces Rs1,500 crore funding gap despite high-profile announcements

Nagpur: Union minister Nitin Gadkari and Deputy chief minister Devendra Fadnavis have announced a series of high-profile projects, but the Nagpur Municipal Corporation (NMC) is grappling with significant fund delays for state-sponsored initiatives. While several projects were launched with much fanfare, their implementation hit a roadblock for lack of funds.
"Projects worth around 1,500 crore, currently undertaken by NMC, are yet to receive funds from the state.A major project affected by this is the Pora River Pollution Abatement and Civic Amenities project," a senior civic finance official said.
Further complicating the situation is the delayed release of 204 crore sanctioned for repair of public infrastructure damaged in the September 2023 flash floods. So far, only 14 crore have been disbursed, leaving many essential works incomplete.
The TOI has time and again highlighted financial strain on the civic body due to Maharashtra govt's freebie schemes such as the Ladki Bahin and the CM apprentice scheme. Earlier, key funds, including the crucial 137 crore GST grant, came late every month, leaving the civic body in a precarious financial situation.
To shield itself from financial liabilities, NMC incorporated clauses into its contracts stating that payments to contractors would only be made after the corporation receives funds from the state. This stipulation was also included in tender agreements to ensure contractors were aware of potential delays, officials confirmed.
Interestingly though, projects announced in the 2023-24 financial year saw timely fund disbursement. For example, NMC received 197 crore for the Intelligent and Integrated Traffic Management System (IITMS) and 104 crore for the Nandgram cattle shed project, which is being developed on 19.02 hectares of land. Additionally, the redevelopment of the New Town Hall and the construction of a cultural centre and primary school in the name of Late Balasaheb Thackeray received 125.72 crore and 26.02 crore respectively.
The civic body also received 100% of the 300 crore allocated under the Phase-IV project for converting tar roads into cement concrete roads.
However, projects announced in the current financial year faced a severe fund crunch. For instance, of the 200 crore allocated for development in Deputy chief minister Devendra Fadnavis' South-West assembly constituency, only 10% of the funds have been received so far. In the East and South Nagpur constituencies, 300 crore have been earmarked for development works, but the NMC has barely received any funding.
The 35 crore will be contributed by state and Centre for redevelopment of Devdiya Maternity Home in East Nagpur. As of today, only 3.48 crore of the total allocation has been disbursed.
On the 810 crore Pora River Pollution Abatement project, the official said the NMC would initially fund 50% of the project, while the state and central govts were expected to contribute 25% each.