Pimpri-Chinchwad: On 8th October, it was announced that IAS Shekhar Singh will be transferred from his post as the Commissioner and Administrator of Pimpri-Chinchwad Municipal Corporation (PCMC) to head
the upcoming Nashik Kumbh Mela as its Commissioner. However, since he left, it was alleged in political circles and by social activists that the civic administrator had drowned PCMC in thousands of crores of debt. Social media was fuming with numbers alleging a huge mounting debt on the civic body. However, the PCMC administration has now made clear the real numbers of the debt.
As cleared by the Accounts Department of PCMC, the total loan taken by PCMC so far is Rs 559.91 crores only -- a number much less than what was speculated on social media and in political circles. Praveen Jain, the Chief Accounts and Finance Officer of the PCMC, claimed that the civic body had an AA+ credit rating, which is considered very good.
After the buzz about PCMC's alleged mounting debt started among city residents, Bharatiya Janata Party's Bhosari MLA Mahesh Landge sought information on the real numbers from the corporation. For this, PCMC officials responded promptly and provided the numbers to the legislator.
The following are the loans and debts that are currently on the head of PCMC:
1. Double-Decker Flyover at Nashik Phata (Kasarwadi):
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Loan Amount: ₹159.91 crore
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Tenure: 30 years
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Amount Repaid: ₹91.90 crore
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Purpose: Construction of the flyover
2. Mula River Rejuvenation Project:
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Loan Amount: ₹200 crore (via municipal bonds)
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Tenure: 4 years
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Amount Repaid: ₹90 crore
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Purpose: River improvement and related infrastructure
3. Urban Street Design & Beautification (Green Bridge & Telco Road):
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Loan Amount: ₹200 crore (Green Bonds)
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Tenure: 5 years
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Amount Repaid: ₹13.50 crore
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Purpose: Beautification and sustainable urban design projects
6. Total Outstanding Debt: ₹364.51 crore
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Note: All loans were sanctioned with prior approval from the Central and Maharashtra State Governments.
Finance Officer Praveen Jain further said, “The loan instalments are being paid regularly. The civic body is financially fully capable of repaying the principal and interest amounts. Credit rating agencies CRISIL and CARE have given the Municipal Corporation an AA+ stable credit rating. PCMC's financial condition is excellent.”
