Rs513cr state dues leave NMC cash strapped despite triple-engine govt

Nagpur: Despite having what leaders often call a "triple-engine govt" — with BJP in power in the Centre, state and in the civic body — the Nagpur Municipal Corporation (NMC) continues to grapple with a serious financial crunch. Key funds promised by the state govt remain pending, leaving the civic body struggling to maintain finances.Officials said the NMC is yet to receive Rs513 crore grants from Maharashtra govt under various development schemes. In the absence of these funds, the civic body is constrained to execute infrastructure projects and sustain development works across the city.
The pending amount includes Rs410 crore meant for basic infrastructure works, including road construction and other civic projects, and Rs102 crore under the special civic amenities fund. Although authorities claim Rs102 crore reached the district planning office, the money is not yet transferred to the NMC treasury, delaying the execution of several planned works.Nagpur's civic administration often highlights the advantage of having political alignment between the Centre, state, and the city. However, the continued delay in fund allocation exposed the NMC's financial vulnerability.Another unresolved issue is the pending funds for repairing damage caused by the Ambazari flood in Sept 2023, when the lake overflowed and triggered widespread flooding across parts of the city. Following the disaster, the state govt approved Rs205 crore NMC proposal to repair damaged roads, strengthen safety walls along the Nag river and other drains, and carry out restoration works.Work orders worth Rs158 crore were subsequently issued, and most of the projects are nearing completion. However, the state govt released only Rs86.5 crore in two instalments so far, leaving Rs72 crore still unpaid. The delay forced the NMC to continue the works while managing the financial burden from its own limited resources.The crisis is particularly worrying as the NMC is already struggling to meet its revenue targets for the current financial year. Against a budget target of Rs5,565 crore for 2025-26, the civic body managed to generate only about Rs2,680 crore so far, putting pressure on its financial planning for the remaining months.A senior official from NMC's accounts and finance dept said the civic administration is regularly following up with the state govt for releasing funds. "We are in constant correspondence with the govt, and the grant will be released in phases," the official said.Until the pending funds arrive, however, the city's civic administration remains under severe financial strain — highlighting the stark contrast between political promises and the ground reality of NMC's finances.