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New Delhi, July 26 (PTI) Cash-strapped MCD was today granted a financial assistance of about Rs 1,500 crore by Delhi Government for payment of salaries to employees and under other heads of expenditure. Delhi Finance Minister A K Walia, after a meeting with an MCD delegation led by Mayor Prithi Raj Sawhney, said the civic body has been granted the amount out of which Rs 500 crore will be as loan. The loan will have to be repaid by the agency within a period of three years. Approving the assistance, Walia told the MCD delegation to improve its financial health and expressed hope that the amount will be spent judiciously. Out of Rs 1,000 crore, Walia said Rs 900 crore is being released as early instalments for various projects being implemented by the agency while Rs 100 crore has been given as an extra grant for schemes related to education and health. The MCD delegation in the meeting demanded a total assistance of Rs 3,533 crore other than Rs 1,000 crore as loan. While the loan was sought for paying salaries to workers, the rest was demanded for giving arrears of Sixth Pay Commission to employees and under education and other heads. "We have been given some of the amount we had sought, but we need more. The Delhi government has maintained that it was also facing financial shortfall. We will again approach the minister later. They had earlier promised to make up for the shortfall in our property tax recovery," Sawhney said. Chairman of MCD Standing Committee Yogendra Chandolia, Leader of the House Subhash Arya and MCD Commissioner K S Mehra accompanied Sawhney. Officials attending the meeting said MCD demanded Rs 1,286 crore as compensation for shortfall in its property tax collection in the last fiscal while it sought another Rs 600 crore under education head. It also sought Rs 1,000 crore as loan for paying salaries to workers while another Rs 597 crore was demanded for projects related to roads, education, medical sector. The MCD is struggling to pay salaries to its workers and is yet to release most of the arrears of Sixth Pay Commission. The municipal contractors are also on a tool-down strike maintaining that their dues were pending for 18 months. PTI MPB.
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