CMDA cash crunch leaves Rs 80 cr road-cut charges unpaid to Metro Water

CHENNAI: Nearly 30 streets that underwent Metro Water works under the North Chennai Development Scheme now face uncertainty over road restoration, with road-cut charges stuck between a cash-drained CMDA and a cash-strapped Chennai Corporation, with nearly Rs 80 crore in road-cut charges due to the civic body from Metro Water.

“Sundharapuram and Shivarajapuram in Pulianthope area, each with 14 streets, face severe road-cut issues. The Metro Water department continues with their works while the issues remain unresolved,” said Ward 78 Councillor C Velu.

He also strongly criticised the Corporation’s failure to collect the outstanding charges owed by Metro Water for cutting the roads at the council meeting. “If the money from Metro Water had been collected, the GCC would not be facing the cash crisis,” he said. “The Corporation must stop auditing and funding redundant schemes and instead, focus on recovering these dues to restructure the city’s financial position.”

However, GCC Commissioner GS Sameeran said that the Corporation was currently unable to collect the dues as the payment from Metro Water was linked to funds to be received from CMDA. “Metro Water has to pay around Rs 80 crore to us as road-cut charges,” he added. “There are many such works across North Chennai, but the exact number of roads involved will require a detailed assessment.”

Sameeran had mentioned that Metro Water was executing major infrastructure works under the North Chennai Development Scheme and that works worth more than Rs 3,500 crore had been released. “To prevent these public works from stalling, Metro Water was permitted to carry out road cuts in anticipation of approval,” he pointed out. “CMDA, which ultimately has to fund and pay GCC for the road cuts, is facing a shortage of funds, preventing Metro Water from handing over the charges to the civic body.”

Despite the pending payments, Sameeran defended the decision to permit the road cuts, stating that Metro Water’s infrastructure works were for public benefit and should not be delayed. The Corporation, meanwhile, is left awaiting the road-cut revenue, even as questions remain over the restoration of roads after the utility works.