₹ 2,000 crore outstanding bills | Chennai Corporation cancels major tenders worth over ₹600 crore

A senior official in the roads department for bus routes said that several tenders for road and trail works have been canceled mainly due to the sharp rise in the price of bitumen. | Photo credit: File photo

The Greater Chennai Corporation (GCC) has shelved several new infrastructure projects, canceled tenders worth over ₹600 crore and stepped up property tax collection as it seeks to ease financial pressure from outstanding bill payments of about ₹2,000 crore.

GCC Standing Committee (Taxation and Finance) Chairman Sarbajaya Das said that no new tenders for major projects are currently underway. “Only projects already underway, including those under Vada Chennai Valarchi Thittam, are continuing. Many new projects have been put on hold,” she said.

Besides, the civic body has not even released the annual funds for the maintenance of the ward, which has been reduced from ₹10 lakh to ₹5 lakh per ward for civic repairs and sanitation in recent years. So many damaged buildings like the Urban Primary Health Centers (UPHCs) are yet to be repaired, Ms. Das said.

A senior GCC official told The Hindu: “Tenders worth around ₹600-700 crore, including the proposed Velachery Bridge project, have been cancelled, mainly to spread expenditure and improve planning. Some limited tenders have been canceled as they were floated with only 24-hour notice, which is a procedural violation.”

In addition, capital-intensive projects will be re-tendered once cash flow improves, he said. However, revenue-generating projects such as pedestrian improvements and multi-level parking will continue, as will grant-supported projects, he clarified. The GCC is facing ₹2,000 crore in outstanding bills, which is why these measures have been taken, according to the official.

Strengthening tax collection

Following a meeting with Assistant Revenue Officers, Senior Finance Officers and Accounts Collectors on July 1, the GCC launched a special property tax collection procedure, extending collection hours from 8:00am to 6:00pm to speed up tax collection and settle arrears on accounts.

The civic body is also working to improve its credit rating to access non-government loans, including Asian Development Banks, the official added.

Meanwhile, a senior official in the roads department for bus routes said that several tenders for road and trail works have been canceled mainly due to the sharp rise in the price of bitumen, making contractors unwilling to carry out work at the older rates.

“After nearly ₹ 100 crore worth of road work was completed this year, tenders for another ₹ 100 crore have been put on hold. Laying of fresh asphalt roads has largely been shelved until the price of asphalt stabilizes, though work on cement concrete roads, footpaths and interlocking pavers continues,” he added.

Published – 06 Jul 2026 23:17 IST