Financial woes hit VMRDA; revenue strategies fall short

The Visakhapatnam Metropolitan Region Development Authority (VMRDA) has found itself grappling with empty coffers amidst a dwindling income and rising expenses. The situation has become dire as existing funds have been exhausted due to the development of various projects and layouts, leading to the withdrawal of fixed deposits. Consequently, the medical and other dues of employees have been left unpaid for several months, causing distress among the workforce regarding timely payment of wages.
Efforts to boost financial resources through auctions of vacant lots and shops have not yielded the expected benefits. While VMRA has consistently announced the auction of properties, including 87 plots in prominent locations, interest from potential buyers remains lukewarm. Previous auctions, including the sale of 100 identified vacant plots, resulted in only 13 plots being successfully sold, providing VMRA with limited income.
VMRDA’s attempts to auction vacant plots, especially in Madhurawada Survey No. 988-10, have faced challenges, with potential buyers hesitant due to high prices and the approaching elections. The reluctance to bid on large land areas is affecting the revenue of NiMRA, causing concern among businessmen. The commercial sector has also been hit by the reluctance of buyers. Despite multiple calls for auctions of shops in Central Park MVP Colony and Seethammadhara commercial shop complexes, responses have been limited. Vacant shops in various complexes, such as Seethammadhara, MVP, and Haritha, contribute to substantial revenue losses for VMRDA.
The financial challenges faced by VMRDA paint a grim picture, with unpaid dues, unsuccessful auctions, and a looming revenue crisis.