The Greater Chennai Corporation is grappling with a total liability of ₹3,434 crore, raising concerns over the execution of future civic infrastructure projects. As of July 29, the civic body reported outstanding payment liabilities of ₹1,929 crore, with an additional ₹1,505 crore in anticipated bills for the coming year. This financial strain stems largely from projects being initiated without dedicated funding or prior financial sanction.
According to official data, the corporation's revenue deficit has surged significantly, rising from ₹375 crore in 2022-23 to a projected ₹1,970 crore for 2025-26. Officials noted that many infrastructure works, including roads and stormwater drains, were executed in anticipation of future funding. To manage the cash crunch, the corporation plans to clear at least ₹713 crore in contractor dues through the Receivables Exchange of India Ltd digital marketplace.
Greater Chennai Contractors Association president R. Ramarao stated that the liability primarily consists of unpaid contractor bills, leaving many waiting for payments. To address the shortfall, the corporation is seeking a ₹500 crore government grant, exploring bank loans, and planning to lease municipal buildings to generate revenue. The World Bank has also offered to fund approximately 10 projects.
