GHMC Division: Government Speeds Up Debt and Revenue Split

GHMC Division | Hyderabad, Feb. 4: The process of dividing the Greater Hyderabad Municipal Corporation has gained momentum, with the government accelerating key steps ahead of the expiry of the current governing body’s term on February 10.

The allocation of officials in the town planning, engineering and sanitation wings has already been completed.

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The government has now shifted its focus to the division of GHMC’s debts, income and expenditure, which officials describe as the most critical aspect of the restructuring.

GHMC division | Debt Sharing Emerges as Key Challenge

GHMC currently carries liabilities of about Rs 4,717 crore, including bank loans, bonds, agency dues and pending contractor bills.

The total borrowings taken for projects, including the Strategic Road Development Programme, had crossed Rs 6,000 crore earlier.

Officials say a committee of IAS officers is examining how these liabilities should be divided after GHMC is split into GHMC, Greater Cyberabad Municipal Corporation and Greater Malkajgiri Municipal Corporation. Several options are under study, including sharing debt based on revenue generation, development works or a possible state guarantee.

Property tax and town planning fee collections have been highest in areas such as Serilingampally, Jubilee Hills, Khairatabad, LB Nagar and Chandannagar.

Significant revenue has also come from merged municipalities like Turkayamjal, Adibatla, Manikonda, Nizampet and Boduppal. Authorities are assessing whether these revenue patterns should guide debt allocation.

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Officials said all reports will be finalised before February 10. From February 11, the civic body will come under a Special Officer, after which decisions on division, sanitation reforms and financial restructuring are expected to move quickly.

GHMC currently pays around Rs 150 crore every month towards principal and interest. Due to regular repayments, it has maintained an AA Stable financial rating for the past eight years.

Officials are now studying how the new corporations will manage liabilities, revenue streams, contractor dues and credit ratings after the split.

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