CHANDIGARH, Aug. 27 — In a major relief for the cash-strapped Chandigarh Municipal Corporation, the Government of India has approved ₹125 crore for the civic body, ending months of uncertainty over its financial crisis.
The approval letter was handed over to Mayor Harpreet Kaur Babla on Wednesday by Punjab Governor and UT Administrator Gulab Chand Kataria at Raj Bhavan. Thanking the Administrator, the Mayor said she had been pursuing the matter for a long time, even meeting the Union Home Minister to highlight the severity of the crisis.
The UT Finance Department, in a letter to the Ministry of Home Affairs (MHA) on August 14, had sought approval to divert ₹125 crore from its own earnings and savings. Since the administration lacks the power to re-appropriate such funds independently, MHA’s nod was necessary. The funds will be shifted from “Head of Materials and Supplies” to “Grants-in-Aid (General)” for release to the MC.
The civic body’s finances had reached breaking point, stalling essential services and halting all developmental projects for the past two years. Road re-carpeting has not been carried out, new projects have not been initiated, and even streetlight replacements and park maintenance were delayed due to lack of funds. Payments to Resident Welfare Associations have also been pending for months, while public toilets remain in poor condition.
Officials said the approved grant is expected to provide some breathing space and allow the MC to resume stalled civic and infrastructure works.
