Mangaluru: BJP, Congress lock horns over borrowing loan from KUIDFC

Leader of Opposition in Council Naveen D’Souza sought a white paper on the financial status of MCC

Commotion prevailed in the council meeting of the Mangaluru City Corporation (MCC), as BJP and Congress took opposing stands over the issue of MCC borrowing loan from the Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC) for implementing developmental works, like construction of drains, retaining walls and others in the MCC limits.

Leader of Opposition in Council Naveen D’Souza, raising objections against the MCC for having borrowed Rs 27,25,50,000 from the KUIDFC for implementing development works in Mangalore City North and City South constituencies, sought a white paper on the financial status of MCC.

The discretion powers of the mayor were hijacked by MLAs while submitting a proposal to the council on various development works, he charged.

Also Read | Mangaluru cooker blast: Cops probing several angles, says Karnataka home minister

"What was the need to borrow loan for each work worth Rs 2 lakh to Rs 3 lakh?" he asked and recollected that Rs 1,000 cr loan was borrowed under the ADB-funded projects in the past for 'missing link works' (where underground drainage network was not linked).

Congress members entered the well of house and raised slogans forcing Mayor Jayanand Anchan to ask Chief Whip in Council Premananda Shetty to read out the agendas tabled in the meeting.

Accordingly, agendas were passed without any discussion in the meeting.

An agenda, given in an anticipation approval by the mayor for works worth Rs 38.89 cr by availing loan from the KUIDFC and using the internal sources of the MCC, led to Congress raising objections to it.

The agenda tabled read, “MCC is facing shortage of funds for carrying out development works, including roads, drains and storm water drains in 60 wards. Thus, it has been decided to raise Rs 27.25 cr from the KUIDFC as loan and utilise Rs 11.66 cr from internal sources of MCC.”

Chief Whip in the Council Premananda Shetty said that initially the MCC had sought Rs 35.55 cr loan (out of total estimated cost of Rs 50.78 cr) for clearing legacy waste in Pacchanady. The remaining amount of Rs 15.23 cr was to be borne by the MCC.

''Since the MCC is expected to get 55per cent of the total project for clearing legacy waste under Swacch Bharat Abhiyan, the corporation had considered using KUIDFC loan for development works. In this regard, the MLAs have held discussion at the government-level,'' Shetty added.