Cash Crunch Hits Nashik Simhastha Kumbh 2027 : Civic Body Borrows ₹576 Crore

Facing a cash crunch ahead of Nashik Simhastha Kumbh 2027, Nashik Municipal Corporation has borrowed ₹576 crore amid delays in central and state funding. With 10 crore pilgrims expected, the funds will fast-track key infrastructure. ₹300 crore comes from bank loans, and ₹276 crore via debt securities and reserves.

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With less than two years to go until the highly anticipated Simhastha Kumbh Mela 2027, Nashik’s Municipal Corporation is grappling with a significant financial challenge. Forced by delays in financial assistance from central and state governments, the civic body has now decided to borrow ₹576 crore to expedite essential preparations for the mega event.

Nashik Simhastha Kumbh 2027- ₹576 Crore Raised Through Multiple Channels

The Simhastha Kumbh Mela, scheduled for 2027, is expected to draw around 10 crore devotees and approximately 5 lakh sadhus and mahants to Nashik. The Municipal Corporation had proactively submitted a ₹15,000-crore proposal to the Maharashtra state government for extensive infrastructure and service upgrades. Despite this, no funds have been disbursed by either the central or state governments, prompting growing concerns among local authorities and religious leaders.

Earlier, during the monsoon assembly session, the government announced an allocation of ₹1,000 crore for the Simhastha preparations. However, officials remain uncertain about the timeline or method of the fund’s release, further complicating the situation.

To overcome this financial roadblock, Nashik Municipal Corporation plans to secure funds through:

The civic body is approaching various nationalized banks to secure ₹300 crore in direct loans. These loans are expected to have low-interest rates and flexible repayment periods of eight to ten years, making them manageable and sustainable.

Dattatray Pathrut, Chief Accounts and Finance Officer of the Nashik Municipal Corporation, confirmed this strategy, saying, “₹300 crore will be raised directly from nationalized banks, and we are initiating the necessary administrative process.”

Taking inspiration from Pimpri Chinchwad Municipal Corporation’s financial strategy, Nashik will issue debt securities to raise ₹276 crore. This includes ₹200 crore directly through debt securities, ₹26 crore from a central government incentive at 13%, and ₹50 crore from the corporation’s own reserves.

With the newly secured financial resources, the Nashik Municipal Corporation aims to accelerate infrastructure and service improvements crucial for the success of the Simhastha Kumbh Mela 2027. The civic body is confident that this approach will ensure the event’s smooth execution, despite initial setbacks in government funding.

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