Sambalpur, March 30: The proposal of the corporation to renovate seven water bodies in the city received a major setback with he Odisha Urban Infrastructure Development Fund declining to extend financial assistance to the project.

The financial utility returned the proposal as the Sambalpur Municipal Corporation has failed to submit its loan repayment plan.

The Odisha Urban Infrastructure Development Fund is a trust of the state government under the housing and urban development department.

The objective of the fund is to promote urban infrastructure projects by providing financial assistance.

Recently, the corporation had applied for a loan of Rs 428 lakh from the trust for the renovation of seven water bodies -Sakhipara tank, Deul tank at Fatak, one along Dhama Road, Juda tank at Modipara, Dani tank at Kumbharpara and Hagri tank at Motijharan.

The corporation, however, had failed to provide any plan of revenue generation from the water bodies. The move of the trust has raised serious doubts about the implementation of the proposal.

"Water bodies in the city face a major threat. Water in these tanks have become unfit for human consumption. Most of the water bodies in the municipal area have been encroached, and are filled with silt and weeds. Several ponds of the city have converted into garbage disposal sites," said Jagyan Narayana Pradhan, a resident.

The corporation officials, however, feel that they will get the money once technicalities are resolved.

Commissioner of the corporation Trilochan Majhi, however, said: "The Odisha Urban Infrastructure Development Fund has not rejected our loan application. They only want to know about the scope of revenue generation from the seven water bodies. We had submitted the scope of revenue generation from the Sakhipara tank. We will explore the scope of revenue generation for the six other water bodies and resubmit the application."