Chennai Corporation seeks ₹233 crore from State to clear pending bills

Cash crunch hits civic body

The Greater Chennai Corporation has approached the Tamil Nadu government with a request for ₹233 crore to clear pending bills. The civic body, which manages the city's infrastructure and public services, is struggling with a severe cash shortage that has delayed payments to contractors and vendors.

Officials familiar with the matter said the funds are needed urgently to settle dues for ongoing and completed projects. The Corporation has been under financial strain for months, with revenue collections falling short of projections and expenditure mounting.

Pending bills mount

The pending bills include payments for road work, maintenance of public amenities, and other essential services. Contractors have repeatedly flagged delays, warning that further hold-ups could stall critical projects across Chennai.

A senior Corporation official, speaking on condition of anonymity, said that the request has been formally forwarded to the State government. "We have submitted a detailed breakdown of the pending amounts and the reasons for the shortfall," the official said.

Revenue shortfall and rising costs

The Corporation's financial troubles are not new. Property tax collections and other revenue streams have not kept pace with rising costs, leaving little room for contingency. The civic body has also had to divert funds for emergency works, further straining its coffers.

Local observers note that the situation could worsen if the State government delays the release of funds. Contractors, many of whom are small and mid-sized firms, are already feeling the pinch and may be forced to slow down or halt work.

What lies ahead

The State government has not yet publicly responded to the Corporation's request. Officials indicate that a decision is expected in the coming weeks, though no formal timeline has been announced.

Meanwhile, the Corporation is exploring other measures to improve its cash position, including stricter enforcement of tax collection and rationalisation of expenditure. Whether these steps will be enough to prevent further delays remains to be seen.

As Chennai's civic body awaits the State's response, the focus will be on how quickly the funds are released and whether they can restore confidence among contractors and residents alike.