UT wants ₹238 crore saved from privatising power for needy MC

In a letter to MHA, UT highlights recurring savings of ₹238 crore annually through privatisation of electricity dept that could help ease MC's debilitating fiscal crisis

- Mandeep Kaur Narula

CHANDIGARH: In a ray of hope for the severely cash-strapped municipal corporation, the Chandigarh administration has written a letter to the Union ministry of home affairs (MHA), seeking ₹238 crore recurring savings resulting from UT electricity department's privatisation that will further be redirected to the civic body.

In the letter, the UT finance secretary highlighted the major milestone achieved with the privatisation of the city's electricity department, a move which led to a significant reduction in recurring expenditure—estimated at ₹238 crore—through reduction in salaries, wages, maintenance costs and commercial losses.

Recurring savings reflect the money saved every financial year, not just once.

The letter came after mayor Harpreet Kaur Babla and municipal chief Amit Kumar raised multiple requests to UT administrator Gulab Chand Kataria to allocate additional funds to MC for ensuring its smooth functioning.