The decision came ahead of elections to the three municipal corporations, currently ruled by BJP.
New Delhi: Delhi Deputy Chief Minister Manish Sisodia today approved a loan of Rs 200 crore to the cash-strapped East Delhi Municipal Corporation (EDMC) for payment of salaries and pensions of its employees till March 31.
The decision came ahead of elections to the three municipal corporations, currently ruled by BJP and AAP has been accusing them of being embroiled in "corruption and mismanagement".
Sisodia, who also holds the finance portfolio, sanctioned the loan proposal with the condition that the amount should "strictly" be spent on payment of salaries and pensions to sanitation workers and other employees of the East Delhi Municipal Corporation.
"The Deputy CM has approved a loan of Rs 200 crore for payment of salaries and pensions to EDMC employees, including sanitation workers. The government has made it clear the loan is being given on the condition that it be spent on payment of salaries and pension only," said a senior official.
With this, Rs 802 crore, including Rs 602 crore under non-plan head, has been given to the municipal body by the government, he said.
The EDMC officials had apprised the government that their monthly expenditure on payment of salaries and pensions is Rs 133 crore and the civic body's annual revenue is Rs 800 crore, the official said.
The draft loan proposal was passed by Urban Development Minister Satyender Jain in view of poor financial condition of the EDMC whose sanitation workers had gone on strike in January over non-payment of salaries.
The government had then announced an advance sum of Rs 119 crore to EDMC for payment of salaries to sanitation workers after which they had called off their strike.
Sisodia had approved the fund to EDMC at that time, saying the BJP-ruled civic body was "wasting" money and had asked it to use the amount "strictly" for payment of pending salaries.