Going by the primary estimate, the civic body needs around ₹40 crore for completing the construction of the new building. It is also in urgent need of money to clear the pending bills of contractors.
The Corporation Secretary has been asked to explore the possibility of raising funds through a bank loan. The report of the Secretary would be placed before the finance committee and the Corporation Council, said Mayor M. Anilkumar.
Though it would require around ₹40 crore for completing the project, the civic body has set apart ₹8 crore from the Plan Fund for the completion of the project. The financial institutions may demand some collateral security for releasing the loan amount. Such aspects would have to be looked into before taking the decision, said Mr. Anilkumar.
The civic body decided to check the possibility of raising a loan after its attempts to get the funds released from the State government failed. The government, which was undergoing serious financial crisis, had expressed its inability in releasing funds to the Kochi Corporation.
The Corporation had been toying with the idea of constructing the new office complex since 2006. The project, which had been lagging for the last 17 years, also witnessed significant cost escalation. The project cost was revised in 2012 as ₹18.7 crore. Three years later, the project was restarted with a revised cost of ₹24.7 crore.
Though nearly 70% of the work has been completed, the paucity of funds has once again slowed down the project. It was during the tenure of the present council that around ₹6 crore was released for the work, with the hope that it would be completed without delay, said Mr. Anilkumar.
Credits : The Hindu