Mangalore City Corporation Faces Funding Challenge as Muda Denies Payment for Service Bus Stand Development
In a troubling turn of events, the Mangalore City Corporation (MCC) is grappling with financial difficulties after the Mangalore Urban Development Authority (Muda) refused to contribute their share towards the development of a service bus stand. This refusal has left the MCC in a precarious situation, as they had already spent Rs 4.2 crore on the project and were expecting Rs 1 crore from Muda to cover a portion of the cost.
According to the MCC, there is no provision within Muda’s authority to allocate funds to the city corporation. Consequently, the MCC is contemplating using Rs 1 crore from its own general fund to compensate for Muda’s denial of payment. This unexpected setback has put the MCC in a tight spot, forcing them to reassess their financial strategy.
The decision to develop the service bus stand was made during a meeting chaired by the Deputy Commissioner of Dakshina Kannada on January 10, 2022. It was agreed upon following the proceedings of the Mangaluru Smart City Advisory Forum. As per the arrangements, the Mangaluru Smart City Limited (MSCL) was expected to contribute Rs 2.2 crore, with Rs 1 crore each sanctioned by Muda and the MCC.
At a council meeting on Friday, Chief Whip of the MCC council, Premanand Shetty of the BJP, informed the attendees that the work on the bus stand had already been completed by the contractor. However, the MCC received a letter from the Muda commissioner stating that they were unable to release funds. Consequently, the MCC is left with no choice but to find an additional Rs 1 crore from its general funds to settle the payment owed to the contractor.
However, leaders of the opposition Congress party have raised concerns over the MCC’s decision to commence the work without involving Muda in the process. Corporator AC Vinayaraj expressed disappointment, calling it a serious lapse on the part of the MCC. He questioned the decision to invite tenders without confirming Muda’s commitment to funding the project. Moreover, he expressed concerns over the impact this would have on the funds available for local development work by corporators.
In response, MCC commissioner Anand CL asserted that given the tender had been issued by the city corporation, they were obligated to compensate the contractor. After substantial deliberation, the council passed a resolution to allocate an additional Rs 1 crore from the general funds to cover the outstanding payment.
The MCC’s predicament highlights the need for better coordination and communication among the governing bodies involved in such projects. The absence of a clear provision for Muda to finance the MCC’s development initiatives raises questions about the planning and decision-making process. As the MCC scrambles to secure the necessary funds, it must also consider the implications this may have on future projects and local development in Mangalore.
While the MCC’s decision to dip into its general funds may temporarily resolve the payment issue, it raises concerns about the long-term viability of funding such projects. The MCC will need to find a sustainable solution to overcome these financial challenges and prevent similar situations from arising in the future. Improved coordination, transparency, and collaboration among all concerned authorities will be crucial to ensure smooth and efficient development efforts in the city.
