Amritsar, December 13: The Government of Punjab is likely to hand over a cheque of Rs. 100 crores to the Amritsar Municipal Corporation as a part of a Rs. 250 crores Master Plan for the development of Amritsar.

According to Punjab Chief Minister Parkash Singh Badal, the funds will be used for the maintenance of internal roads, improving drinking water and sewerage facilities and providing uninterrupted power supply to the city.

In a resolution passed by the Improvement Trust of Amritsar on December 6, stated that the trust has offered to transfer two plots of land, measuring 3.73 acres and 2.78 acres respectively, to the Punjab Urban Development Authority (PUDA).

The two sites have been reserved for the construction of a multiplex.

In lieu, PUDA would lend a loan to the Punjab Government for the Amritsar Municipal Corporation.

According to the resolution, PUDA will recover the amount by auctioning the land off in the coming years.

According to an expert, the reserve price of the lands in question is Rs. 94 crores approximately. However, the amount is expected to increase, if auctioned.

PUDA is already charging 12 per cent interest from the Punjab Health System Corporation for the loan given to the Punjab Institute of Medical Sciences. It would also be charging a similar interest from the State Government.

However, Amritsar’s Mayor, Shwet Malik, has refused to use the loan that is attracting interest. He said, “We are concerned with the release of the amount that would further be spent on the development of Amritsar”.

According to sources, the 'selling of capital asset for meeting recurring expenses' would not be to the benefit of Amritsar.

The resolution of the Improvement Trust had been dispatched to the Punjab Chief Secretary and the Secretary in charge of Local Government, for implementation. (ANI)