Rs 374 cr approved to cash-strapped MCDs

A government official said the Cabinet approved Rs 145.30 crore for North MCD, Rs 110.70 crore for East MCD and Rs 118 crore for South MCD.

According to the official, the Cabinet accepted the formula worked out by the Urban Development Department for allocation of Municipal Reform Fund (MRF) share to the three Corporations, since strictly on the basis of the recommendations of the Finance Commission, two of the three Corporations — North and East — do not qualify to get any allocation of the MRF. 

The allocation share was decided by giving 50 per cent weightage to population, 25 per cent to Area and the remaining 25 per cent to Population Density for each of the three Corporations. Before trifurcation, during the Financial year 2009-10 an amount of Rs 3 crore was released to the unified Municipal Corporation of Delhi with the concurrence of Finance Department, Government of NCT of Delhi. 

In the year 2010-11, an amount of Rs 143 crore was released. No funds under the Municipal Reform Fund were released during the year 2008-09 and 2011-12. After trifurcation, in the year 2012-13 an amount of Rs 150 crore was released to three MCDs as an interim measure, and it was adjusted against repayment of outstanding Ways and Means of Loan of three MCDs in the same financial year.