The study group would comprise elected office-bearers and corporators owing allegiance to the MVA, which is the single largest party at the PMC. The report would be ready within a month, according to a party insider.

This development comes within a week of MVA leader Suresh Kalmadi's announcement that the mega scheme would be cleared by the elected representatives at the general body meeting only if the municipal administration convinces him about availability of funds for other development projects.

Kalmadi during a meeting with the elected office-bearers and top civic officers last week had raised the doubt since the PMC would be required to set aside Rs 70 crore every year for repaying loans procured for the Rs 750 crore first phase of the scheme to be accomplished by the year 2001. This may adversely affect other development projects as a major chunk of funds would be diverted to the mega scheme, he felt.