Rajkot Municipal Corporation grapples with mounting debt of Rs. 1307 crore

Rajkot: The Rajkot Municipal Corporation (RMC) finds itself entangled in a huge financial debt, owing crores of rupees in unpaid dues. The debt, amounting to Rs. 1307 crores as of November 2023, is attributed to outstanding water charges.

A breakdown of the debt reveals a substantial amount of Rs. 153 crores pending payment for the Sauni Yojana, along with a significant due amount of Rs 770.81 crore from the Narmada Water initiative. Additionally, the RMC owes a debt of 373.27 crores to the state Irrigation Department.

The debt is so high that even if the Municipal Corporation were to allocate the entire year’s revenue and capital income, it would be insufficient to settle the outstanding dues with the government. The RMC revives around Rs. 100 crore in property tax (Verabill).

The growing urban area of Rajkot has led to a surge in daily water demand, exceeding 40 crore liters. However, the civic body has failed to create new water bodies over the past 45 years to meet the escalating demand. This situation has led to this surmounting debt on the Municipal Corporation. DeshGujarat