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To combat financial crunch, North MCD to rent out its properties

In order to overcome severe financial crunch, the North Delhi Municipal Corporation has proposed to rent out its 855 assets including schools and community centres to the banks for setting up of Automatic Teller Machines (ATMs). The Standing Committee of the North Corporation passed the proposal on Wednesday with a view that if a portion of these properties are rented out, an estimated earning of Rs 120 to Rs 140 crore can be generated from it.

North MCD Commissioner PK Gupta said: “The Corporation has several assets and properties located within the reach of the public which can facilitate them to meet their day-to-day financial transactions.” The proposal will be tabled in the next House meeting for seeking its approval.

Out of a total of 855 assets, 584 are Corporation schools, 95 community centers, 53 hospitals and dispensaries, and 104 other types of stores. It was also decided that one ATM will also be setup at the iconic SPG Civic Centre. According to the proposal, approximately 100 sq feet area, in every property, would be handed over to the banks for operating ATMs, generating revenue of approximately Rs 35,000 every month. “The proposal has a potential to generate revenue of approximately Rs 130 crore annually,” Gupta added.

Standing Committee Chairman Mohan Prasad Bhardwaj was of the view that, by engaging these properties, the Corporation will be able to revive from the prevailing conditions. “The proposal is in the financial interest of North MCD. With the usage of assets and properties of the Corporation, we would soon be able to meet the expenses and salaries of our employees,” Bhardwaj said.

While citing security concerns, Gupta informed that these ATMs would be installed on a space adjacent to the main entry gate of a premise, with an independent gate of its own, so that the user of the ATM does not need to enter the municipal premise through the regular gate. “Initially, the property would be given out at this rate for the first ten years and then extended on conditions,” Gupta added. 
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