The cash-strapped KMC is literally going around with a begging bowl to the banks asking for loans mortgaging its fixed deposits to pay the bonus to civic as well as Kolhapur Municipal Transport staff. The exercise, which a few municipal officials and practically every concerned tax-payer fear, will severely affect developmental works in the long run.

According to a highly-placed KMC official, the corporation is out to raise about Rs 1.55 crore to meet the demand raised by its employees that they should be paid a bonus in cash before Diwali festival.

Bonus will be paid to KMC employees after a formal resolution is approved by the civic general body at its meeting scheduled to be held on Saturday. In addition to KMC employees to, who went on an indefinite strike to press for their 15 demands including bonus, the KMT employees have also been demanding bonus. At a meeting with district collector Arvind Singh, who is holding additional charge as the municipal commissioner, after commissioner Dr S K Sharma proceeded on a year long study leave to United Kingdom, leaders of two employees union in the KMT unanimously demanded that since KMC employees were being paid the bonus, KMT employees should also be paid the same. Hence another resolution for paying bonus to KMT employees will also be tabled before the civic general body on Saturday.

Highly placed civic officials informed The Indian Express that funds to the tune of Rs 1.55 crores were required to pay bonus to KMC and KMT employees.

``Considering the financial crisis the corporation is facing, we will have to borrow loans against fixed deposits of the corporation from various banks. One of such banks we are planning to approach is United Western Bank,'' told the official to this newspaper. These loans will be borrowed as soon as the civic general body gives green signal to resolutions, he added.

KMC officials do not rule out the possibility that such a practised would hamper developmental works in the long run. If the corporation fails to raise substantial revenue from octroi, water cess and property tax, a dark cloud of developmental works being affected looms large over the corporation. ``First to be hit in such case would be annual road construction and road repair works and drainage works. Besides, there are various projects of KMC, to which some quantity of funds are allotted. Spokes will be put to the progress of these projects,'' the officials felt.

To sum up the situation, the outcome of this venture in the long run, if the KMC fails to generate substantial revenue as it has always in the past, will be appeasement of a few at the cost of tax payers money.