Corporation to seek Rs 5-crore loan

KOCHI: The Kochi Corporation will take a Rs 5 crore loan from a nationalised bank to pay off the arrears due to the contractors. The decision in this regard was taken at the council meeting held on Monday. The loan will be taken from the Syndicate Bank and the civic body is planning to repay the amount after three months, Mayor Tony Chammany informed the Council.“A majority of the councillors, who took part in the discussions said that the contractors are hesitant to undertake works owing to the non-payment of dues. The Corporation, which is facing a severe financial crunch, is left with no other option than to go for a loan,” Chammany said.However, the councillors said that the amount would not be sufficient to pay the dues. Town planning committee chairman K J Sohan told the members that applying for a larger loan will put additional burden on the Corporation. “To opt for an amount higher than Rs 5 crore will heavily add to the liabilities of the civic body. We need to foot a Rs 29-crore bill to the Kerala Water Authority soon,” he said.The mayor informed the councillors that a decision on borrowing a larger amount will be taken at the next meeting of the steering committee. The mayor said that the Corporation will seek the help of the state government to solve the potable water crisis in the West Kochi area. “The old and damaged pipelines in West Kochi need to be replaced soon to resolve the crisis. Water Resources Minister has promised a sum of Rs 11 cr for the purpose,” he added.