Additional Municipal Commissioner V R Ramani informed today that this innovative avenue was being explored taking into account the financial position of the BMC. However, it all depends on what interest rates the agencies will loan money to the BMC. ``As of now, our financial position is not very strong and hence we may not be able to secure loans at a relatively lower rate,'' he added.

Though agencies are known to have loaned money at even 10 per cent interest, the BMC is banking on the AAA rating it was given by CRISIL, a rating agency, to secure loans at a relatively lower interest rate. The AAA rating means that investing in BMC bonds will ensure highest safety. However, there is no move to float any bonds at the moment, said Ramani.

Thecivic administration usually borrows funds from the Provident Fund account of its employees in the form of internal loan. According to statistics provided by the Chief Accountant (CA) Department, till January this year the BMC's PF deposit totalled Rs 966.45 crore. Of this, the administration has already borrowed Rs 535.99 crore for capital works, invested Rs 54.86 crore in state government bonds and the remaining Rs 375.50 crore has been invested in fixed deposits in various banks.Civic officials informed that the administration deposits either in the nationalised banks or scheduled banks whose turnover is more than Rs 10 crore every year.

This is perhaps the first time that the administration has borrowed such a large sum from the PF pool. According to an official of the CA Department, the administration usually borrows about Rs 70 to 80 crore every year compared to the Rs 535.99 crore this year.

However, there is no limit as to how much can be borrowed as internal loan. Ramani said, ``We can borrow theentire amount sine there is a guarantee that the money will be returned in instalments. We generally borrow from the PF account but now we may have to borrow from outside agencies as the amount in the PF is limited.'' Meanwhile, the opposition has criticised the move to borrow money. Ravindra Pawar of the Congress wondered how the amount would be returned taking into consideration the huge deficit the BMC was facing. ``This shows the inefficiency of the functioning of the corporation and very soon we will be bankrupt,'' he added.