Hyderabad's Municipal Restructuring: Debt Allocation and Administrative Challenges
HYDERABAD: The recent decision to divide the Greater Hyderabad Municipal Corporation into three separate civic bodies—GHMC, Cyberabad, and Malkajgiri—has sparked a crucial financial debate. At the heart of this restructuring lies a pressing question: who will be responsible for the outstanding debt of approximately Rs 5,000 crore? This substantial liability, accumulated primarily from major infrastructure initiatives, now requires careful distribution among the newly formed corporations.
Financial Liabilities and Allocation Strategy
The existing GHMC's debts, totaling around Rs 5,000 crore, stem largely from interest on loans taken for significant urban development projects. These include the Strategic Road Development Programme (SRDP), Comprehensive Road Maintenance Programme (CRMP), storm water drain systems, and various other municipal works. According to sources within the municipal administration, the state government is actively working on a plan to divide both assets and liabilities among the three corporations.
This allocation will be based on the geographical location of projects and how the loans were utilized. Civic officials have clarified that liabilities will not be imposed uniformly across all three bodies. Instead, they will be apportioned according to the specific projects and works executed within each corporation's jurisdiction.
A top official from the GHMC revenue wing explained, "Debts will be assigned based on the purpose of the loan. For example, if a loan was taken for constructing a flyover or road project in a particular zone, the corresponding corporation will bear that liability. Major infrastructure loans will be mapped zone-wise and allocated accordingly."
The government has already initiated the process of segregating assets and liabilities, indicating a methodical approach to this complex financial restructuring.
Administrative and Staffing Challenges
Beyond the financial implications, the trifurcation of GHMC is expected to create significant administrative hurdles. One of the most pressing issues is the severe shortage of personnel in key departments essential for maintaining public health and urban services.
Critical areas such as sanitation, veterinary services, horticulture, entomology, food safety, and enforcement are already understaffed. These departments play vital roles in waste management, mosquito control, stray animal management, maintaining green cover, and ensuring public health standards in Hyderabad's rapidly expanding metropolitan area.
With the creation of three separate corporations, each will require its own administrative setup, including engineering wings, health departments, and enforcement teams. This triplication of needs could exacerbate the existing staffing gap unless a large-scale redistribution of personnel is implemented effectively.
Employee unions have expressed concerns that without strengthening human resources, service delivery could suffer during the transition period. The success of this municipal restructuring will depend not only on equitable debt distribution but also on addressing these administrative challenges to ensure seamless urban governance.
