Bhopal Municipal Corporation Struggles To Recover ₹250 Crore From Government Offices; Plans ₹450 Crore Loan

Bhopal (Madhya Pradesh): Bhopal Municipal Corporation (BMC) is grappling with a financial paradox, seeking a Rs450 crore loan from the International Finance Corporation (IFC), the lending arm of the World Bank, to fund its share of works under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme, while failing to recover nearly Rs 250 crore in pending service charges from government departments.

According to data from the BMC revenue department, several key government entities owe substantial amounts. The military tops the list with approximately Rs 125 crore in arrears, followed by the railways at Rs 40 crore. Additionally, departments such as housing, tourism, and home affairs remain on the defaulters’ list.

While the gas relief department recently cleared Rs 40 lakh and Bhopal Development Authority (BDA) has initiated partial payments, most entities have shown limited urgency in settling dues.

Similarly, a few days ago, the BMC wrote to Bharat Sanchar Nigam Limited (BSNL), which owes Rs 18.15 lakh, while the tribal development department has Rs 36.20 lakh outstanding. The corporation has begun steps to recover these amounts.

Despite taking strict action against individual taxpayers, the corporation has largely been limited to issuing routine notices to major institutional defaulters, raising concerns over inconsistent enforcement.

Other defaulters include:

* Bhopal Development Authority: Rs10 crore

* Public Works Department: Rs 5 crore

* Public Health Engineering Department: Rs 3 crore

Loan push amid fiscal pressure The mounting dues have significantly impacted the BMC’s financial health, pushing it toward external borrowing to fund projects under schemes like AMRUT. Experts suggest that recovering even half of the pending Rs250 crore could substantially reduce dependence on loans and interest burdens.

Official statement BMC Commissioner Sanskriti Jain told Free Press that the corporation is still exploring the Rs 450 crore loan option and is servicing previous loans through EMIs. Jain assured that efforts are underway to recover pending dues from all government departments soon.

Published on: Saturday, April 11, 2026, 12:30 AM IST