Municipalities in Gujarat in serious need of funds, ₹311 cr electricity bills unpaid

The electricity bills worth ₹311 cr remain unpaid by 57 municipalities in Gujarat, which are facing a dire need of funds and income.

The mismanagement of the municipalities’ funds has led to a severe financial instability.

The situation is worsening across the state, as many municipalities do not have the funds to pay their electricity bills.

If the bills remain unpaid, it is likely that streetlights in certain cities could be switched off.

For a long time, the municipalities have been struggling with low tax revenue.

Various taxes are yet to be collected, and elected representatives have not allowed the strict collection of taxes, with elections in mind. Without proper tax collection, the municipalities have no source of income.

Although there have been discussions about increasing taxes, the government has held the decision due to the elections. 

The situation has reached a critical point, with municipalities such as Bhuj, Mandvi, Halvad, Krutaniya, Petlad, Padra, Limbdi, Bavla, Bareja, Nadiad, Radhanpur, Deesa, Dehgam, Vadli, Siddhpur, Harij, Palanpur, Kalol, Manavadar, Sutrapada, Babra, Morbi, and Dabhoi are unable to pay their outstanding electricity bills.

The financial crisis has become so severe that these municipalities may have to request government assistance and may be forced to take loans at a 4% interest rate to pay off the bills.