KOCHI: The cash-strapped city corporation has decided to take a loan of Rs 10 crore from a private bank to clear contractor's’ bills. A resolution in this regard was passed unanimously during a meeting of its council on Tuesday. “It will seek the state government’s approval for taking an overdraft,” said mayor Soumini Jain. The contractors are on an indefinite strike from last month in protest against the inordinate delay in clearing the bills. Though the civic administration had held negotiations with them, the contractors were not ready to withdraw stir and reiterated their stand on clearing arrears.
The civic body now owes more than'50 crore to the more than 200 civil contractors. While participating in the debate, health committee chairperson V.K. Minimol and CPM councillor K.J. Antony stressed the need to identify other funding sources to pay the bills of contractors regularly. “It is not feasible to take huge amount as bank loan for clearing arrears. It will create an interest burden of Rs 1.5 crore every month,” Ms Minimol said.
Meanwhile, responding to the Opposition’s allegations that there are serious technical lapses in the construction of a new jetty at Fort Kochi for RO-RO vessels, the mayor said it was in compliance with the technical specifications of Cochin Port Trust. “If council members have doubts, a joint site inspection can be done to remove their apprehensions and doubts over the mooring jetty construction,” she said. The meeting also decided to issue registration forms at a rate of Rs 10 to play schools and daycares for starting the registration and licensing process. “The registration and license fee for such centres will be decided as per the bylaw to be introduced to the council soon,” she added.
